Amazon sets up US$80 billion hardware-backed borrowing facility
The financing will be available from the start of 2027 through the third quarter of 2028 as Amazon expands its AI data centers.
Amazon has arranged financing allowing it to borrow as much as US$80 billion against hardware purchases, Bloomberg reported, citing a quarterly filing. The facility comes as the company spends heavily on AI data centers.
Borrowing under the arrangement can begin at the start of 2027 and continue through the third quarter of 2028. Lenders will have rights over some equipment purchased using the financing, but Amazon's filing did not identify the hardware covered.
Amazon reported US$42.4 billion in free cash outflow for the 12 months through September. Its spending commitments totaled US$883 billion, more than twice the level a year earlier. Debt had exceeded US$225 billion in June following a US$17.5 billion loan led by Citigroup.
The company previously financed its expansion with cash generated by AWS and retail operations, alongside record bond sales this year. AWS chief executive Matt Garman told Bloomberg Television that Amazon was seeking responsible ways to fund what it saw as a large opportunity and expand its capacity to serve customers.
