Big Tech projected to spend $735 billion on AI infrastructure by 2026

Major technology companies are significantly increasing capital expenditure to build out artificial intelligence infrastructure. Leading hyperscalers, including Amazon, Alphabet, Microsoft, and Meta, are projected to spend approximately $735 billion on AI data center infrastructure by 2026.

This massive investment is driving demand across various sectors. Industrial companies like Caterpillar are benefiting from the need for power generation and construction equipment, while semiconductor firms like AMD are focusing on energy efficiency to manage the high power demands of AI workloads. AMD has reported a fourfold increase in AI energy efficiency as part of its roadmap toward 2030.

In South Korea, SK Hynix is leveraging record profits from high-bandwidth memory demand to consider a $29 billion share buyback program. Meanwhile, in Mexico, the expansion of data centers is increasingly tied to energy availability, with the country's electrical grid becoming a critical factor for digital hub development. The industry is also seeing a shift toward securing autonomous AI agents, evidenced by Fortinet’s acquisition of Virtue AI to address new cybersecurity risks.