AI data-center buildout pushes Big Tech toward debt, power and copper costs

The AI data-center construction boom is driving major technology companies to rely more heavily on debt financing, forcing investors to track traditional cost drivers such as interest rates, electricity and copper. Amazon and other firms are expected to see negative free cash flow as spending accelerates, while Nvidia is described as retaining a strong cash position. Even so, the sector’s rising capital expenditures make funding costs more sensitive to rate moves, according to CNBC. Higher financing costs could also slow the pace at which projects tied to AI infrastructure move forward, even as demand lifts attention on copper.