The five hyperscalers (Alphabet, Amazon, Meta Platforms, Microsoft, and Oracle) now spend at unprecedented scale. Their aggregate capital expenditures are on track for ~$729B in FY 2026 and expected to rise 45% y/y to ~$1,054B in FY 2027. At that run rate, their collective infrastructure spending will eclipse both the U.S. national defense budget and annual federal spending on transportation and water infrastructure. Alphabet alone is expected to spend $304B. With compute demand still outpacing supply, this historic buildout is a land grab for the infrastructure AI and software will run on for the next decade.
