Bank for International Settlements warns that hyperscalers increasingly use off-balance-sheet arrangements to finance AI infrastructure, creating hidden risks for insurers and private credit funds. This "shadow borrowing" strengthens links between tech giants and non-bank investors while obscuring true financial exposures.

Meta Platforms popularized structures where debt sits completely off balance sheets through special purpose vehicles or joint ventures. These arrangements allow enormous sums to be raised while limiting impact on financial health, with private markets raising debt through placements and hyperscalers committing to long-term leases or capacity agreements.

The BIS notes banks support such vehicles with funding lines, potentially creating new shock transmission channels. Lenders face refinancing pressures, procyclical shifts in private credit appetite, or guarantee activation. Building data center capacity requires hyperscalers to tap every corner of capital markets, amplifying systemic risks.