ANALYSIS2026-06-11 · Value Add VC
AI Hyperscaler Capex 2026: Why Microsoft, Google, Meta and Amazon Are All Spending at Once
Value Add VC
Compiled notes
Related in the base
What it moved
2026 hyperscaler capex ~$725B (+77% YoY): Amazon ~$200B, MSFT ~$190B, Google $175-185B, Meta $115-135B; ~50% compute / ~35% plant / ~15% power
Core Thesis
The four largest US hyperscalers are spending in synchrony because "each company fears being structurally short on compute more than it fears overspending."
Per-Company 2026 Capex Guidance
| Company | 2026 Capex | YoY |
|---|---|---|
| Amazon | ~$200B | ~+100% |
| Microsoft | ~$190B | ~+100% |
| Google/Alphabet | $175–185B | ~+110% |
| Meta | $115–135B | ~+80% |
Industry Total
- 2026 combined: ~$725B vs ~$410B in 2025 → +77% YoY.
- 2027 projection: $1 trillion+.
Allocation Breakdown
- Compute & silicon (~50%): ~$260B+ Nvidia GPUs + ~$80B+ custom silicon.
- Data-center plant (~35%): ~$170B shells/land + ~$85B networking/cooling.
- Power & grid (~15%): ~$105B generation, PPAs, nuclear contracts.
Source: AI Hyperscaler Capex Compared — Value Add VC, 2026-06-11. Full-text fetched.