GOOGL · 10-Q · 2026Q1 · Full report

Datacenter Capacity Expansion

Alphabet Inc. · 2026-04-30 · Importance 89 · Surprise 82 · Matches filing data

Capital expenditures were $35.7 billion for the three months ended March 31, 2026 (up from $17.2 billion in the prior-year quarter), reflecting significant investment in technical infrastructure, including servers, network equipment, and data centers. Alphabet states it expects to significantly increase 2026 investment in technical infrastructure relative to 2025 and that data center construction projects are generally multi‑year with phases from land acquisition to server installation. The company has entered into leases primarily related to data centers that have not yet commenced with future lease payments of $75.6 billion that will commence between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years. These investments drive higher depreciation (depreciation on property and equipment was $6.5 billion for the quarter) and are referenced in the capital expenditures and leases disclosures and Note 4.

Key facts

• As of March 31, 2026, Google had entered into leases related to data centers that have not yet commenced with future lease payments of $75.6 billion, commencing between 2026 and 2031 and terms primarily between one and 25 years. source

Impact estimates