Sundar Pichai said securing computing capacity for customers in 2027 is an incredibly difficult task because current capacity was planned in 2024, before the surge in agentic AI. Google has relied on short-term leases to meet immediate demand while prioritizing AI research over near-term revenue. The shortage is industry-wide: Amazon Web Services is reportedly sold out through 2028, while tens of gigawatts of data center capacity are under construction or in advanced planning for 2027. Alphabet projects capital spending of $195 billion to $205 billion in 2026, and more than $1 trillion in non-cancellable leases have been signed this year, creating major financial risk if AI demand grows more slowly than expected.
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