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Alphabet raises 2026 capex to as much as $205B for AI infrastructure
Alphabet said its free cash flow will likely stay negative for the foreseeable future as it ramps data center and computing investment.
Alphabet’s parent, Google, told investors it is increasing planned capital expenditures for 2026 to as much as $205B, a jump from earlier estimates of $180B to $190B, according to Bisnow.
The spending increase is heavily weighted toward data centers and the computing equipment inside them, and the company expects the ramp to continue into next year. On its earnings call, CFO Anat Ashkenazi said capex will “increase significantly” again in 2027.
Bisnow reports that the heightened infrastructure buildout is expected to push Alphabet into a period where it spends more than it generates, even as results beat expectations and revenue growth remained strong.
Following its Wednesday earnings report, Alphabet shares fell more than 7% Thursday after an after-hours drop, and the article notes some analysts see the sell-off as more than routine post-earnings volatility.