AI boom pushes hyperscaler CapEx towards USD 830 billion in 2026
Rising demand for AI infrastructure is driving a sharp increase in capital expenditure among the world’s largest cloud service providers (CSPs), according to new data from TrendForce.
The market research firm has revised its 2026 forecast for combined CapEx among the top nine global CSPs – Google, Amazon Web Services, Meta, Microsoft, Oracle, ByteDance, Tencent, Alibaba and Baidu – to approximately USD 830 billion. This corresponds to an annual growth rate of 79%, up from an earlier estimate of 61%.
North American players accelerate spending
The increase is largely driven by North American hyperscalers, which continue to raise investment levels in response to sustained AI demand.
Microsoft has lifted its CapEx outlook to USD 190 billion, implying around 130% year-on-year growth, with approximately USD 25 billion linked to rising component costs. Google has revised its guidance to USD 180–190 billion, also indicating growth above 100%.
Meanwhile, Meta has increased its CapEx range to USD 125–145 billion, representing roughly 85% growth, while Amazon Web Services is expected to exceed USD 230 billion, with growth of more than 50% driven by demand for AI cloud services.
TrendForce notes that the pace of CapEx expansion among North American CSPs exceeds the global average, reflecting the strategic importance of AI infrastructure.
Investment focused on high-performance computing
Spending is increasingly directed towards high-performance GPU clusters, in-house ASIC development and next-generation data centres designed to handle high power-density workloads.
This trend is also accelerating global data centre deployment. As of the end of 2025, five major North American CSPs – Amazon Web Services, Microsoft, Google, Meta and Oracle – had collectively established between 800 and 900 data centres worldwide, with AWS accounting for the largest share.
Chinese CSPs expand with differing strategies
Among Chinese providers, Alibaba and ByteDance are leading expansion efforts, though with distinct approaches.
Alibaba is focusing on regionalisation and sovereign cloud offerings through its cloud division, expanding into markets such as Brazil, France and the Netherlands. The company now operates across 29 regions and 94 availability zones globally.
In contrast, ByteDance is pursuing a more aggressive international expansion strategy via its global platforms, with operations spanning eight countries including the United States, Brazil and Ireland, alongside continued investment in Europe and Southeast Asia.
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