Could the AI boom make borrowing more expensive in Europe?

US technology companies are borrowing heavily to fund artificial intelligence, adding competition for investment capital that European governments and businesses also need. The growing supply of bonds could push up borrowing costs across Europe, where higher rates are already adding pressure to public finances and company earnings.

Amazon, Alphabet, Meta and Oracle have issued about $250 billion in dollar bonds since early 2025 and €37 billion in euro bonds; Microsoft has since sold $25 billion in dollar bonds. Goldman Sachs expects AI hyperscalers to issue $420 billion in new bonds next year, including around €60 billion in euros. France’s 10-year bond yield has risen from about 3.7% to nearly 5% in six months, while its interest bill is projected to grow from €79 billion now to €91 billion next year. European Central Bank economists warn the borrowing surge could make financing harder for other sectors, while Goldman says rising interest costs have already cut European company earnings by more than 5% since 2022.