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All issuesVolume 335, Issue 1IT NewsCxO

Big Tech To Spend $650B This Year As AI Race Intensifies

DataCenter Knowledge, Friday, February 6th, 2026

Alphabet, Amazon, Meta, and Microsoft are driving unprecedented AI spending, surpassing budgets and setting records this decade.

Four of the biggest US technology companies together have forecast capital expenditures that will reach about $650 billion in 2026 - a mind-boggling tide of cash earmarked for new data centers and all the gear housed within them.

The spending planned by Alphabet, Amazon, Meta Platforms, and Microsoft, all in pursuit of dominance in the still-nascent market for AI tools, is a boom without a parallel this century. Each of the companies' estimates for this year is expected either near or surpass their budgets for the past three years combined. They would set a high-water mark for capital spending by any single corporation in any one of the past 10 years, according to Bloomberg data.

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