Oracle, Microsoft, and Meta companies have undertaken data center lease commitments totaling $500 billion for the next decade. This amount is tied to long-term contracts for server farms that have yet to be built.
According to editorial information, Oracle is the leader in commitments, with $150 billion of its $248 billion in contracts signed in the last three months. The company is building extensive infrastructure within an annual agreement of $30 billion to support OpenAI's new models.
Meta's data center lease commitments have tripled in one year, reaching $58 billion. Google's analogous commitments have increased sevenfold, amounting to $42.6 billion. Microsoft, meanwhile, began long-term leases in the early stages back in 2023 to meet OpenAI's computational demands.
Analysts state that these commitments are not reflected on balance sheets until payments begin, and some contracts extend up to 19 years. Concerns have risen on Wall Street, with Oracle's stock experiencing sell-offs after the company disclosed its plans, and experts emphasize that its capital capabilities will be severely limited.