Did you know Tech Giants are Going to Spend More on AI Hyperscalers Because of Increasing Demand
Hyperscalers are large scale data center operators which provide services in cloud computing and storage and the data by J.P Morgan Asset Management shows
that spending for AI hyperscalers is going to increase in the upcoming
years. Companies like Alphabet/Google, Microsoft, Meta, Amazon and
Oracle are spending a lot on AI hyperscalers because they are important
for training AI models. These companies have spent estimated $197
billion on AI infrastructure in 2024 and the total capital spending for
hyperscalers is set to rise further.
The highest spending on
hyperscalers was by Microsoft, a total of $75 billion in 2024. Amazon
Web Services (AWS) is also increasing its investments in AI
infrastructure because of global demand for advanced applications. Meta
spent about $40 billion on AI hyperscalers in 2024, with an increase of
350,000 GPUs to train their LLMs. Google Cloud is also investing a lot
in training their AIs which is making them billions of revenue. The need
for data centers is rising with increase in demands.
It is also expected that tech giants will spend $234 billion collectively on AI hyperscalers in 2025, while about $248 billion will be spent in 2026. It is also to be noted that US data center property inventory has increased by 43% in 2023 and 2024 because there is a high demand from big tech firms.
| Year | AI Hyperscaler Capital Spending |
|---|---|
| 2026P | $249 billion |
| 2025P | $234 billion |
| 2024P | $197 billion |
| 2023 | $126 billion |
| 2022 | $123 billion |
| 2021 | $92 billion |
| 2020 | $73 billion |
| 2019 | $67 billion |
| 2018 | $65 billion |
| 2017 | $40 billion |
| 2016 | $31 billion |
| 2015 | $25 billion |
| 2014 | $23 billion |
| 2013 | $17 billion |
| 2012 | $10 billion |
| 2011 | $8 billion |
| 2010 | $7 billion |
| 2009 | $4 billion |
| 2008 | $7 billion |
| 2007 | $5 billion |
| 2006 | $4 billion |
| 2005 | $2 billion |
| 2004 | $2 billion |