Big Tech eyes $770B AI spend

Google, Microsoft, Amazon and Meta are projected to spend about $770 billion on AI infrastructure in 2026, according to an InfotechLead report published on May 20 that cited Dell’Oro Group. The estimate points to another year of heavy spending on data centers, accelerated servers, networking and related hardware as the largest cloud and internet companies expand AI capacity. Dell’Oro has separately said global data center capital spending is on pace to exceed $1 trillion in 2026 and to rise by more than 50% from 2025 levels. The figures underscore how much of the AI race is now being fought through physical infrastructure rather than model announcements alone. ### Where does the $770 billion figure come from? InfotechLead attributed the $770 billion projection to Dell’Oro Group research on AI infrastructure demand in 2026. The report said the spending would come from Google, Microsoft, Amazon and Meta, the companies that have led the current buildout of AI-capable data centers and cloud capacity. (infotechlead.com) Dell’Oro said in a March 12 release that large-scale AI deployments continued to expand in late 2025 and that Blackwell shipments, custom accelerators and broader component demand would support further growth in 2026. The firm also said accelerated servers remained the core spending driver heading into 2026. (infotechlead.com) ### What are these companies actually buying? Dell’Oro said high-end accelerated servers are pulling through demand for GPUs and custom accelerators, high-bandwidth memory, solid-state storage, network interface cards and high-speed networking used in large AI clusters. That means the spending is not limited to Nvidia chips. It also covers the surrounding server, memory, storage, power and network systems needed to run large training and inference workloads. (delloro.com) Dell’Oro also said general-purpose server average selling prices are expected to rise by high double digits in 2026 because of higher DRAM and storage prices. That suggests part of the spending increase reflects both more equipment and more expensive equipment. ### Why does Nvidia sit at the center of this buildout? (delloro.com) InfotechLead said cloud service providers are expected to account for more than 60% of global demand for Nvidia GB and VR series AI servers in 2026. The report did not spell out those product families in the excerpt available, but the demand signal points to continued concentration among hyperscale buyers rather than a broad-based enterprise market of similar size. (delloro.com) Dell’Oro said Dell led all original equipment manufacturers in AI-optimized server revenue in 2025, followed by Supermicro, driven by strong Nvidia Blackwell shipments. That gives a separate indication that Nvidia-based systems remain central to the current server cycle even as custom silicon programs expand at some large cloud companies. (infotechlead.com) ### How does this compare with other 2026 spending forecasts? InfotechLead reported earlier this month that AWS, Microsoft, Google, Meta and Oracle were collectively pushing global cloud capital expenditure toward $830 billion in 2026, citing TrendForce. That figure is not directly comparable because the company set is different and the category is broader, but it points in the same direction: hyperscalers are still raising infrastructure budgets. (delloro.com) A separate InfotechLead report in March, citing Bridgewater Associates, said Alphabet, Amazon, Meta and Microsoft were projected to spend about $650 billion on AI infrastructure in 2026, up from $410 billion in 2025. The new $770 billion figure suggests forecasts are moving higher as analysts incorporate faster deployment and equipment demand. (infotechlead.com) ### What will show whether the forecast is holding? Dell’Oro’s quarterly data center capex reports will be one check on whether the 2026 spending pace is materializing. Company filings from Alphabet, Microsoft, Amazon and Meta will provide another, particularly capital expenditure guidance and disclosures tied to servers, data centers and AI capacity. Dell’Oro has said the market is on pace to exceed $1 trillion in data center capex in 2026, while also warning that the level of investment raises the potential for overcapacity if demand or execution falters. (infotechlead.com) (delloro.com)