Major hyperscale cloud companies, including Google, Amazon, and Microsoft, are projected to spend approximately $500 billion on capital expenditures in 2026. Google plans to increase its investment significantly, with expected spending between $175 billion and $185 billion, compared to $91.5 billion in 2025. This surge in spending surpasses earlier analyst estimates of $115 billion for the year.
The substantial investment by these cloud giants is anticipated to drive demand for datacenter infrastructure, benefiting real estate investment trusts (REITs) specializing in datacenter properties. These REITs could see increased leasing activity and expansion opportunities as hyperscalers build out their cloud capacity.
**Why this matters**
The large-scale capital investments by hyperscale cloud providers indicate strong growth in cloud computing demand. Datacenter REITs positioned to serve these companies may experience significant revenue growth and asset appreciation. This trend highlights the critical role of datacenter infrastructure in supporting the expanding digital economy.
Source: NewsData