Tech Titans' $420 Billion Bet on Cloud Computing Pays Off

Amazon and Alphabet are two of the biggest spenders in the data center space.

Their combined capital expenditures total $420 billion, with Amazon's projected spending at around $220 billion for 2026.

Alphabet's guidance is slightly lower at $195-205 billion, but it has raised its projections every quarter this year, so the actual figure may be higher than the midpoint of $200 billion.

This massive investment in cloud computing infrastructure is paying off, with Amazon Web Services' (AWS) revenue growth accelerating to 37% year-over-year in Q2, and Alphabet's Google Cloud growing at an even faster rate of 82% year-over-year.