(Bloomberg) — The biggest U.S. technology companies now plan to spend up to $725 billion this year on capital expenditures, mostly on AI data center equipment.
and a raised their full-year capital expenditure projections, while a released its first spending estimate through the end of December, matching Alphabet at $190 billion.
A. It was the only one of the Big Four data center developers — which have come to be called the industry’s hyperscalers — to maintain its numbers at $200 billion, even though it reported a surge in spending in the March quarter that reduced its free cash flow.
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“We are increasing our infrastructure investment forecast for this year,” Meta CEO Mark Zuckerberg said on a conference call with analysts on Wednesday. The company raised the upper limit of its planned spending range to $145 billion. “Most of this is due to rising component costs, particularly the price of memory. But all the signs we’re seeing in our own work and across the industry give us confidence in this investment.”
The increase in spending was driven by strong results from the four multibillion-dollar companies, which met or exceeded expectations on several metrics.
Still, the market reaction was not uniform, as Amazon and Alphabet delivered more impressive results than Meta, whose spending was also considered riskier than that of its competitors operating cloud computing services, which would allow them to rent out any excess capacity.
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