Alphabet plans to nearly double its infrastructure spending to between $175 and $185 billion in 2026, up from $91.4 billion in 2025 and $52.5 billion in 2024, representing a nearly threefold increase. CEO Sundar Pichai highlighted compute capacity bottlenecks as a key operational concern, alongside constraints related to power availability, land acquisition, and supply chain logistics. Google Cloud’s backlog surged 55% quarter-over-quarter to reach $240 billion, driven by enterprise demand for AI services. In reaction, Nvidia and Broadcom shares rose in after-hours and premarket trading as investors anticipate increased demand for their GPUs, networking components, and custom silicon essential to hyperscale data centers.
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