Market Primer
Server racks inside a US data center
Server racks inside a US data center. Image: National Renewable Energy Laboratory, US Department of Energy, public domain
Part D: The Technology and Industrialization Engine

Layer 14AI capital spending and data centers

The read

Analysis of Oct 28, 2026, on data through Oct 28, 2026. Charts under each judgment are its evidence; sources are linked in the text.

  • Spending is still rising at an extraordinary pace. Microsoft, Alphabet, Amazon and Meta spent $511 billion on capital projects over the past four quarters, up 75% from a year earlier, the highest on record. On their July calls the four largest cloud companies guided to roughly $700 billion or more of capital spending in 2026: Amazon about $200 billion, Microsoft about $190 billion, Alphabet $175 to $185 billion and Meta $130 to $145 billion. Analysts at Moody's and several banks expect about $1 trillion in 2027. (Company earnings calls, July 2026)

    Capital spending by Microsoft, Alphabet, Amazon and Meta

    Billions of dollars spent on property and equipment, including data centers, over the previous four quarters, from company filings.

    Source: Company filings (SEC).

    Readings in this chart