GOOG · 10-Q · 2026Q1 · Full report

Purchase Commitments and Backstops

Alphabet Inc. · 2026-04-30 · Importance 56 · Surprise 24 · From source text

As of March 31, 2026, Alphabet had material purchase commitments and contractual obligations totaling $332.4 billion, including $138.0 billion short‑term, primarily related to technical infrastructure and inventory through long‑term supply agreements and open purchase orders. Commitments also include content licenses and energy take‑or‑pay contracts; for certain agreements the company provided financial guarantees and credit derivatives with maximum potential future payments in the billions. Alphabet disclosed an agreement to provide up to $33.3 billion of future backstops to support data center and energy build‑out, and in April 2026 entered into an agreement to backstop approximately $15.3 billion with a data center provider. These obligations indicate significant forward procurement and risk exposure tied to data center expansion, energy supply and technical supply chains.

Key facts

• Alphabet has entered into an agreement to provide up to $33.3 billion of future backstops to support data center and energy supply infrastructure, and in April 2026 entered into an agreement to backstop approximately $15.3 billion against that remaining commitment. source
• In connection with certain TPU hardware agreements, Alphabet agreed to provide credit backstops to support third-party data centers and power infrastructure. source
• As of March 31, 2026, Alphabet provided backstops in the form of financial guarantees with maximum potential future payments of $9.0 billion and credit derivatives with maximum potential future payments of $28.4 billion. source

Impact estimates