Data Center Deals Hit Record $61B as Debt Doubles to $182B
TL;DR
Global data center dealmaking reached $61 billion through November 2025, surpassing 2024's record $60.8 billion, according to S&P Global. Debt issuance nearly doubled to $182 billion from $92 billion last year, with Meta alone raising $31 billion in 2025. The financing surge comes amid growing regulatory scrutiny and bubble concerns, as two data center billionaires emerged before building a single facility and some borrowers seek loans exceeding 150% of construction costs. The Bank of England launched a review of data center lending, while Goldman Sachs warns investments may fail to pay off if AI models cannot be monetized.
What Happened
S&P Global reported on December 19 that more than $61 billion flowed into the data center market through November 2025, with over 100 transactions exceeding all deals completed in 2024. The total includes M&As, asset sales, and equity investments.
The most notable transaction: a $40 billion acquisition of Aligned Data Centers by a consortium including BlackRock, Microsoft, and Nvidia.
Debt financing saw even more dramatic growth. Issuance nearly doubled to $182 billion from $92 billion in 2024. Hyperscalers issued $121 billion in bonds in 2025 alone, more than 4x the five-year average of $28 billion. Over $90 billion came in the last three months of the year.
The majority of deals occurred in the U.S., followed by Asia-Pacific. Since 2019, North American data center dealmaking totaled about $160 billion, with APAC at $40 billion and Europe at $24.2 billion.
Why It Matters
The financing surge signals both unprecedented demand for AI infrastructure and growing financial risk in the sector.
Hyperscaler Capex Trajectory: Top 5 hyperscaler capital expenditure rose from $256 billion in 2024 (+63% YoY) to a projected $443 billion in 2025 (+73% YoY), with $602 billion expected in 2026 (+36% YoY).
Off-Balance Sheet Structures: Major tech companies shifted over $120 billion in AI data center debt off balance sheets through special purpose vehicles. Meta sealed the largest deal in October 2025: $30 billion with Blue Owl Capital for its Louisiana Hyperion facility, netting $3 billion in cash while offloading debt.
Regulatory Attention: The Bank of England launched a review of data center lending after growing concerned about spending and financing levels.
Bubble Indicators: Skeptics point to warning signs including two data center billionaires minted before anything built, borrowers seeking loans for 150% of construction costs, and complex "master trust structures" that rotate assets every few years.
Technical Details
Debt Issuance by Company
| Company | Debt Raised Since 2022 | 2025 Portion |
|---|---|---|
| Meta | $62 billion | ~$31 billion |
| $29 billion | — | |
| Amazon | $15 billion | — |
| Total Hyperscaler 2025 | $121 billion | — |
Meta raised nearly half its total debt in 2025 alone.
Deal Volume Trends
| Year | M&A + Investment | Debt Issuance | Combined |
|---|---|---|---|
| 2024 | $60.8 billion | $92 billion | ~$153B |
| 2025 | $61+ billion | $182 billion | ~$243B |
| Change | +0.3% | +98% | +59% |
Regional Distribution (Since 2019)
| Region | Cumulative Deals |
|---|---|
| U.S. + Canada | $160 billion |
| Asia-Pacific | $40 billion |
| Europe | $24.2 billion |
Investment Projections
| Source | Estimate | Timeframe |
|---|---|---|
| McKinsey | $5.2 trillion | AI infrastructure by 2030 |
| Morgan Stanley | $3 trillion | Cumulative CapEx 2025-2029 |
| UBS | $900 billion | New global debt in 2026 |
What's Next
Analysts expect continued momentum into 2026. Struta told CNBC they "wouldn't be surprised" if already-high valuations climb further. The number of hyperscaler data centers under construction nearly doubled in 2024 from post-pandemic lows, with 114 hyperscaler facilities planned or in development.
However, concerns persist:
Monetization Risk: Goldman Sachs warns datacenter investments may fail to pay off if AI models cannot generate revenue, though it hedges by noting demand could overwhelm capacity by 2030.
Leverage Concerns: Growing debt levels raise refinancing risks if technology underperforms expectations. As I Squared Capital's Sadek Wahba stated: "Momentum is strong, but if this is irrational exuberance, investors will lose when the music stops."
Overbuilding Potential: McKinsey's $5.2 trillion investment estimate underscores potential for surplus capacity if AI compute demand grows slower than anticipated.
Counterpoint: Wall Street dealmakers remain active. "M&A work is still ongoing as people still need power," noted B. Riley's Joe Nardini. Bitcoin miners and data center developers continue requiring serious amounts of power.
Introl Angle
Record data center investment translates to record deployment activity requiring specialized field engineering. Introl's 550 HPC-specialized engineers support GPU infrastructure deployments across 257 global locations as hyperscalers race to build capacity. Learn more about our coverage area.
Published: December 29, 2025