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WSJ: Five Big Tech Firms Seen Spending $741B on AI in 2026

June 25, 2026 at 14:51 EDT

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The Wall Street Journal reported that analysts expect combined 2026 capital spending by five major hyperscalers — Alphabet, Amazon, Meta Platforms, Microsoft and Oracle — to reach roughly $741 billion, up about 75% from the prior year, with the AI data-center building boom cited as one driver pushing up inflation.

2026 Outlook · Hyperscaler AI Capex

$741 Billion on AI Data Centers — and a "Third Wave" of Inflation

Five tech giants plan a record ~$741B in 2026 AI infrastructure spending, up roughly 75% from last year. The surge is straining chips, power and construction labor — and pushing prices higher.

$741B

Combined 2026 AI capex (record sum)

+75%

Increase over the prior year

81%

Economists expecting the build-out to lift inflation

Who's spending in 2026

Estimated capex, $ billions (column height to scale)

~$200B

Amazon

~$182B

Alphabet

~$155B

Microsoft

~$130B

The price spillover

Year-over-year inflation tied to the build-out (as of May 2026)

+27%

Wholesale electronic components

+15%

Computer software & accessories (CPI)

+6.5%

Electrical contractor wages

The bull case

Seen by some as an "economic reordering on par with the commercialization of electricity." AI productivity gains could ultimately act as a disinflationary force.

The risks

AI revenue stays small vs. massive capex; projects like the $500B Stargate carry execution risk; power and component tightness may delay Fed rate cuts.

The longer horizon

~$8T

Estimated total AI build-out, 2026–2032

~50%

Of U.S. electricity demand growth through 2030 from data centers

~6%/yr

Expected annual rise in consumer power prices

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