Does ALTER INDEX ALL REBUILD use more transaction log space with simple recovery model than rebuilding each index individually?
I assumed that following each index operation performed by the "ALL" form of the command, the transaction log data would be flushed prior to the next index rebuild. Is that how it actually works, or are the index rebuilds logged as if they are part of a single transaction?


1) Log flushing: the SIMPLE recovery model does not clear the log after every transaction, but at checkpoints. (link for more info)

2a) REBUILD ALL: yes, REBUILD ALL works as a single transaction. The index rebuilds within have their own transactions, but the overall operation isn't fully committed until the end. So yes, you might limit log file growth by rebuilding individual indexes (and possibly issuing CHECKPOINT commands).

2b) Proof! Here, have a demo script. (Built in 2016 dev)
First, set up a test db, with table and indexes:

USE master
GO

CREATE DATABASE Test_RebuildLog
GO

ALTER DATABASE Test_RebuildLog
SET RECOVERY SIMPLE
GO

USE Test_RebuildLog
GO

CREATE TABLE IndexTest
(ID int identity(1,1),
a char(1),
b char(1))

CREATE CLUSTERED INDEX CIX_IndexTest_ID ON IndexTest(ID)
CREATE INDEX IX_IndexTest_a ON IndexTest(a)
CREATE INDEX IX_IndexTest_b ON IndexTest(b)

INSERT IndexTest
(a,b)
VALUES ('a','b'),('z','y'),('s','r')


Now you can compare log activity between REBUILD ALL and rebuilding individually

CHECKPOINT
GO
ALTER INDEX ALL ON IndexTest REBUILD

SELECT *
FROM sys.fn_dblog(NULL,NULL)
WHERE Operation = 'LOP_COMMIT_XACT'
OR Operation = 'LOP_BEGIN_XACT'
GO

CHECKPOINT
GO
ALTER INDEX CIX_IndexTest_ID ON IndexTest REBUILD
ALTER INDEX IX_IndexTest_a ON IndexTest REBUILD
ALTER INDEX IX_IndexTest_b ON IndexTest REBUILD

SELECT *
FROM sys.fn_dblog(NULL,NULL)
WHERE Operation = 'LOP_COMMIT_XACT'
OR Operation = 'LOP_BEGIN_XACT'
GO


Note how the first open transaction (Transaction ID 0000:000002fa for me) isn't committed until the end of the REBUILD ALL, but for the index-by-index rebuilds, they are successively committed.