Five groups will spend up to 800 billion dollars on data centres in 2026

Amazon, Alphabet, Microsoft, Meta and Oracle have together signalled investment of 775 to 800 billion dollars for 2026. That is roughly three times what these five companies spent in 2024. Around 75 percent of it goes to projects in artificial intelligence.

The figures come from the quarterly reports and analyst calls for the second quarter, published between 22 and 30 July. Oracle reports on a financial year that ends in May and is therefore one quarter behind the others.

For the individual companies the sizes are as follows. Amazon leads with around 200 billion dollars, followed by Microsoft with about 175 to 190 billion, Alphabet with 175 to 205 billion after raising the upper end at its quarterly figures, Meta with 125 to 145 billion after two increases and Oracle with around 50 billion dollars.

In the previous year the four largest had together spent about 410 billion dollars.

The short version

• Five groups signal investment of 775 to 800 billion dollars for 2026, roughly three times the 2024 level.
• Around 75 percent of that goes to projects in artificial intelligence.
• Investors now read increases as bad news, and after the reports the large technology groups lost almost one trillion dollars in market value.

Investors now react badly

The reaction of the markets is worth noting. A few quarters ago higher investment budgets were read as evidence of healthy demand. That has since turned around.

After Alphabet raised its guidance alongside its quarterly figures, the share fell seven percent the following day. Amazon, Meta and Microsoft also gave way. According to a tally by CNBC the large technology groups lost almost one trillion dollars in market value following their reports.

The reason lies in the financing. The long term debt of Amazon rose 81 percent to 119 billion dollars between 31 December and 31 March. At Alphabet it rose 111 percent to 98 billion dollars in the first half of 2026. The group, long regarded as exceptionally cash generative, reported a negative cash flow for the first time in the second quarter.

Cloud businesses keep growing strongly

On the other side stand the growth rates of the cloud divisions. In the second quarter Google Cloud grew 82 percent, Amazon Web Services 37 percent and Azure 43 percent.

The chief executive of Amazon put the growth of the cloud division at 36.7 percent and named an annual revenue run rate of more than 25 billion dollars each for the business in artificial intelligence and for its own chips.

Investment there was raised from 200 to 220 billion dollars while free cash flow fell to minus 7.6 billion dollars. Investors took that calmly at first, and the share rose after the figures.

Apple stays the outlier

Within the group Apple falls outside the pattern. The company has not made a comparable expansion, and its investment even fell 19 percent in December 2025 against the year before.

That shows in the share price. Apple is up around 23 percent this year, Amazon only about four percent. The iPhone maker is now regarded as the safe haven within the sector, because it relies on hardware, services and subscriptions and covers functions in artificial intelligence largely through partnerships.

How far the valuations differ showed in a single trading day at the end of July. Meta lost eight percent, Microsoft gained 15 percent.

Power becomes the bottleneck

The decisive question for 2026, in the view of industry observers, is not whether the money is there but how quickly it can be built into something. The sector is already limited by the available electrical capacity, and delivery times are getting longer.

Analysts expect the investment of the large providers to pass the one trillion dollar mark in 2027.

Frequently asked questions

How do the 800 billion dollars split up

Amazon leads with around 200 billion dollars, followed by Microsoft with about 175 to 190 billion, Alphabet with 175 to 205 billion, Meta with 125 to 145 billion and Oracle with around 50 billion dollars. In the previous year the four largest had together spent about 410 billion dollars.

Why do investors react badly to higher budgets

The reason lies in the financing. The long term debt of Amazon rose 81 percent to 119 billion dollars, and at Alphabet 111 percent to 98 billion dollars. Alphabet reported a negative cash flow for the first time in the second quarter.

What limits the build out of data centres

In the view of industry observers not the money, but the available electrical capacity and the delivery times. Analysts expect the investment of the large providers to pass the one trillion dollar mark in 2027.

This analysis is for information only and is not investment advice.