US Tech Firms' €46B Bond Burden Could Crowd Out Euro Zone Borrowers

U.S. tech firms are significantly expanding their presence in the euro zone bond market, with combined outstanding debt nearing €46 billion ($46 billion) and new issuance accounting for nearly 10% of gross market activity. This surge, driven by massive investments in artificial intelligence—expected to reach $1 trillion by 2028—is reshaping borrowing dynamics and potentially elevating credit risks across sectors, including governments and supranational entities. Amazon and Alphabet have been the most active issuers this year, while passive investors tracking benchmark bonds are amplifying demand for tech debt, putting upward pressure on spreads and limiting access for other borrowers.