Five tech giants pledge over $3 trillion for AI data centers

AI infrastructure keeps drawing huge money. According to Bloomberg, Alphabet, Meta, Microsoft, Amazon, and Oracle have promised to spend over $3 trillion on data centers and related areas in the coming years, covering leases, construction, energy, and equipment.

Alphabet has the biggest commitment, with contracts worth over $1 trillion, nearly eight times the level of a year ago. Meta plans to spend over $800 billion, with nearly half tied to data center leases that run up to 30 years. The company says it will keep investing heavily to support its core business and new AI projects.

Whether these huge bets will pay off is a hot debate in the business world, as both Alphabet and Meta have seen free cash flow turn negative. Oracle was the first big tech firm to slip into negative free cash flow from AI data center spending. It expects to turn positive by 2028 and plans to use supplier financing and customer prepayments to cut early costs.