Oracle · Meta · xAI · Financial Times · The Guardian Technology
To raise money, Centocor also did off-balance-sheet financing
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In the 1980s and early 1990s, hundreds of millions of dollars were plowed into these partnerships.
Key facts
- The Financial Times reported in December 2025 that tech companies had shifted more than $120bn of AI datacenter spending off their balance sheets through special-purpose vehicles and similar
- During that time, before the Internet, SEC disclosures and 24/7 media scrutiny, the public little knew of these vehicles
- If this is a glut, it’s a strange one: developers increased North American capacity by 36% last year and vacancy still fell to a record 1.4%
- According to CBRE’s North America Data Center Trends H2 2025 report, demand is outpacing supply in nearly every major market
Summary
Some experts are warning of a looming “debt bomb” crisis because big datacenter builders such as Meta, Oracle, xAI and CoreWeave are not only raising billions to construct these facilities but are also not recognizing these long-term debt obligations on their balance sheets. It works like this: Meta wants to build a datacenter to accommodate its growing AI and cloud computing needs. It forms a separate entity that’s not consolidated in its financials, which builds the datacenter. The worry comes from the enormous sums of money being plowed into these entities. Skeptics are worried that these tech guys are pulling the wool over the public’s eyes and not properly disclosing the long-term impact of all this debt. Argue about consolidation.