Cloud giants to increase AI spending by 90% in 2026

Nine major cloud service providers — Alphabet, Amazon, Meta, Microsoft, Oracle, Alibaba, Baidu, ByteDance, and Tencent — are projected to raise capital expenditure to approximately $886.7 billion this year, marking a 90% year-over-year increase. Research firm TrendForce attributes the surge to investment in computing infrastructure needed to support accelerating AI applications. The firm forecasts a further 49% increase for 2027, reaching $1.32 trillion. AI server shipment projections were revised upward from 28% to 31% for 2026, driven by adoption of NVIDIA's solutions, Google and Amazon AWS's next-generation AI chips, and Chinese vendors' expansion with domestic technologies.