[BREAKING] Moody’s flags $662 billion risk at the heart of the data-center buildout by just 5 companies

HEADLINE: Moody's Flags $662B in Off-Balance-Sheet Data-Center Commitments at Big Tech

LEAD: Moody's Ratings has identified $662 billion in future data-center lease commitments that five major U.S. hyperscalers—Amazon, Meta, Alphabet, Microsoft, and Oracle—have not yet recorded on their balance sheets, according to a sector report released February 25.

THE ISSUE: These commitments represent leases that have not yet commenced. Under GAAP accounting principles, future lease obligations that haven't started are not classified as current liabilities and therefore remain off-balance-sheet. As of end-2025, the five companies held $969 billion in total undiscounted future lease commitments for data centers not yet built, with the $662 billion subset representing leases awaiting commencement.

WHAT IT MEANS: As these leases activate over the coming years and landlords fulfill their obligations, the $662 billion will migrate onto corporate balance sheets—potentially reshaping leverage ratios, debt-to-equity calculations, and other metrics CFOs use for financial planning and investor communication. The report highlights how the AI infrastructure buildout is straining traditional accounting frameworks designed before trillion-dollar data-center races.

NEXT: Watch for Q1 2026 earnings calls, where CFOs will likely face investor questions about lease acceleration timelines and balance-sheet impact.