GOOG · News · 20261103N

AI Infrastructure Demand and Capacity

Alphabet Inc. · 2026-11-03 · Importance 40 · Surprise 56

Analyst Jeff Pu of GF Securities expects the five largest U.S. cloud service providers to spend about $1.2 trillion on AI infrastructure in 2027 and $1.4 trillion in 2028. The forecast implies annual spending growth of 43% and 16%, respectively, down from previous estimates of 53% and 20%. Alphabet is among the providers signaling further capital-spending increases to expand computing capacity and data centers for AI initiatives.