Amazon raises C$14 billion in the largest Canadian dollar bond sale on record to fund AI infrastructure

Amazon is raising C$14 billion, approximately $10 billion, from investment-grade bonds denominated in Canadian dollars, according to Bloomberg. The deal is the largest corporate bond offering ever in the currency, surpassing the C$8.5 billion Alphabet raised in Canadian dollars just one month ago.

The offering consists of five tranches of senior unsecured notes with maturities ranging from three to 30 years. Pricing on the longest tranche tightened by 5 basis points to 1.10 percentage points above Canadian government bonds, a sign of strong investor demand. JPMorgan, Royal Bank of Canada, Bank of Nova Scotia, and Toronto-Dominion Bank are running the deal.

Amazon said proceeds will be used for general corporate purposes, which may include supporting business investments, funding future capital expenditure, and repaying debt. The real driver is AI infrastructure. Amazon is expected to spend close to $200 billion this year on data centres, chips, and related infrastructure, a figure that has risen from roughly $83 billion in 2024 and $125 billion in 2025.

The Canadian dollar sale is the latest stop in a global debt tour that has taken Amazon across currencies and continents. The company has raised more than $70 billion of debt since the start of 2025, including a $37 billion US dollar deal in March, a EUR 14.5 billion euro offering shortly after, and its first Swiss franc bond in May, a six-part issuance that raised CHF 2.82 billion.

The pattern is not unique to Amazon. Alphabet has been tapping multiple currencies with similar urgency, issuing in US dollars, euros, sterling, Swiss francs, yen, and now Canadian dollars. Bloomberg Intelligence analysts Robert Schiffman and Alex Reid said Amazon’s return to the bond market after the Swiss deal suggests its AI investment trajectory for 2027 is meaningfully higher than the $200 billion anticipated this year.

The five largest hyperscalers, Amazon, Alphabet, Microsoft, Meta, and Oracle, issued $121 billion of corporate bonds in 2025 alone, compared with an average of $28 billion per year between 2020 and 2024. UBS credit strategists have estimated the sector may need to borrow between $230 billion and $240 billion in 2026. Morgan Stanley and JPMorgan have projected the sector could require as much as $1.5 trillion of additional debt over the coming years to fund the AI build-out at its current pace.

Amazon’s credit position remains comfortable for now. The company generated approximately $100 billion in free cash flow in fiscal 2025, and AWS operating margins have stayed above 30%. But the sheer scale of spending is why even the wealthiest technology companies are borrowing rather than relying solely on cash reserves. The AI capex race has turned hyperscaler treasurers into multi-currency sovereign-style borrowers, and the Canadian dollar is simply the latest market large enough to absorb the demand.