Meta, Google, Amazon plan $635–700B capex

Alphabet, Microsoft, Meta and Amazon enter earnings week with investors fixated on one number: AI infrastructure spending that Reuters said is approaching $600 billion this year. (reuters.com) Reuters reported on April 28 that the four companies are on track to pour around $600 billion into artificial intelligence in 2026, with quarterly results from Alphabet, Microsoft, Meta and Amazon all due on Wednesday, April 29. (reuters.com) (abc.xyz) (microsoft.com) (investor.atmeta.com) (ir.aboutamazon.com) The spending plans already disclosed are huge. Alphabet told investors in February it expects 2026 capital expenditures of $175 billion to $185 billion, while Amazon said it plans roughly $200 billion this year, mostly for Amazon Web Services infrastructure. (abc.xyz) (reuters.com 1) (reuters.com 2) Meta set an even steeper range in its 2025 annual report cycle, forecasting 2026 capital spending of $115 billion to $135 billion after spending $72.22 billion in 2025. Microsoft has not given a full-year 2026 capex target on its investor site, but its fiscal second-quarter results said margins were pressured by continued AI infrastructure investment. (sec.gov) (datacenterdynamics.com) (microsoft.com) This is not ordinary office equipment spending. The money goes into data centers, advanced chips, networking gear, land, buildings and long-term leases needed to train and run large AI models. (amazon.com) (microsoft.com) (sec.gov) Wall Street is now measuring whether those outlays are turning into faster cloud growth and stronger ad sales. Reuters cited Visible Alpha and LSEG estimates showing expected January-to-March growth of 25% for Amazon Web Services, 40% for Microsoft Azure and 50.1% for Google Cloud. (reuters.com) The cash consequences are already visible. Reuters reported that Amazon and Meta have announced job cuts affecting thousands of workers, while Microsoft rolled out its first employee buyout program in more than five decades. (reuters.com) The power side is tightening too. CNN reported on April 23 that AI growth is colliding with finite electricity supply, and Reuters reported April 24 that Maine Governor Janet Mills vetoed a bill that would have paused large new data centers in the state. (cnn.com) (reuters.com) Some companies are already hunting for dedicated energy. Reuters reported on April 27 that Meta partnered with space-solar startup Overview Energy to secure solar power for data centers as AI demand puts pressure on the U.S. grid. (reuters.com) Wednesday’s earnings calls will not settle whether the AI buildout pays off. They will show whether the biggest buyers of chips, servers and power can keep funding a capital cycle that is remaking their balance sheets. (reuters.com)