Executive Summary

Hyperscalers face growing questions about how leases and commitments affect leverage. The report clarifies consistent treatment across major credit considerations.

Data center ownership changes funding needs and exposure to future obligations. Leasing reduces upfront spending but creates long term payment commitments.

Purchase commitments support infrastructure expansion while creating demand risk. However, they are assessed differently from direct financial debt.

Backstops can transfer third party credit exposure to hyperscalers. Estimating potential obligations requires assessing default likelihood and recoveries.

Contracted revenue provides context for future lease payment coverage. Meanwhile, peer comparisons highlight differing exposure to data center overbuilding.