"The top five U.S. hyperscalers have accumulated $662 billion in future data center lease commitments not yet begun that, because of that fact, are not current liabilities and therefore currently sit entirely off their balance sheets. As those leases begin over the next several years, and as landlords' obligations are fulfilled, that more than half a trillion dollars worth of data-center activity will be recorded on the balance sheet."
"Moody's accounting analysts David Gonzales and Alastair Drake calculated that the unrecorded $662 billion is equivalent to 113% of these five hyperscalers' most recent adjusted debt. David Gonzales characterized the $662 billion at issue as 'yet to be on the balance sheet,' rather than missing, noting that 'they have not yet received the services to trigger this liability as of this time, but they will.'"
The top five U.S. hyperscalers—Amazon, Meta, Alphabet, Microsoft, and Oracle—have accumulated $969 billion in total future lease commitments for data centers as of end of 2025. Of this amount, $662 billion represents leases that have not yet commenced and therefore are not recognized as current liabilities under GAAP accounting principles. This massive financial obligation remains off their balance sheets until the leases begin and services are delivered. The unprecedented scale of AI infrastructure investment is straining traditional accounting metrics. These uncommenced lease commitments equal 113% of the five companies' combined adjusted debt, representing a significant hidden financial obligation that will eventually be recorded on balance sheets as leases commence over the coming years.
#ai-infrastructure-investment #off-balance-sheet-liabilities #data-center-commitments #accounting-standards #tech-hyperscalers
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