Google plans to increase capital investments to $75 billion this year in an effort to expand its AI and cloud capacity, says CEO Sundar Pichai in the company’s Q4 2024 earnings report. The company spent $52.5 billion in capital expenditure in 2024.
Google will direct the majority of its growing CapEx to relieving capacity bottlenecks through upgrades to infrastructure, including cloud servers and data centers, according to CFO Anat Ashkenazi.
“We exited the year with more demand than we had available capacity,” says Ashkenazi. “We are in a tight supply demand situation, working very hard to bring more capacity online.”
Massive AI infrastructure investments are the new normal in cloud. Microsoft promised in January to spend $80 billion on AI-enabled data centers during its current fiscal year, and Amazon was projected to spend $75 billion on capital investments last year, the majority of which was to “support the growing need for technology infrastructure,” according to CFO Brian Olsavsky.
Source: www.constructiondive.com