Hyperscalers and AI Capex to Exceed $1 Trillion
Analysis based on 7 articles · First reported Feb 11, 2026 · Last updated Mar 17, 2026
The market is positively impacted by the strong projected capital expenditures in data centers, especially for AI deployments, indicating robust growth in the cloud and AI sectors. This sustained investment by hyperscalers like Amazon, Alphabet Inc.===Google, Meta Platforms, Microsoft, and Oracle Corporation suggests continued demand for related infrastructure and services.
Dell Oro Group reported that worldwide data center capital expenditures increased by 57 percent in 2025, driven by accelerated AI deployments and general infrastructure investments. The report forecasts that hyperscalers and AI model developers will sustain strong capex momentum in 2026, with full-year data center capex expected to surpass $1 trillion. The top four US cloud service providers, Amazon, Alphabet Inc.===Google, Meta Platforms, and Microsoft, increased their data center capex by 76 percent in 2025. Oracle Corporation more than tripled its data center capex to build capacity for the Stargate project. While most AI investments support internal frontier models, there's increasing support for AI model developers. Inferencing is expected to become a larger capex driver, raising potential for overcapacity, though hyperscalers are mitigating risks.
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