Tech Giants Project $735 Billion AI Data Center Spend

Major technology companies are projected to spend $735 billion on AI data centers in 2026. Amazon, Alphabet Inc., Microsoft, and Meta Platforms Incorporated are leading these capital expenditures, with Amazon raising its 2026 AI initiatives budget to $220 billion and Alphabet increasing its guidance to $205 billion.

This spending surge is fueling record growth for industrial infrastructure providers. Eaton Corporation reported second-quarter revenue of $8.5 billion and an 85% year-over-year increase in electrical sector data center orders. To expand its liquid-cooling capabilities, Eaton acquired Boyd Thermal for $9.5 billion. Similarly, Vertiv saw second-quarter revenue jump 24% to $3.27 billion, while Caterpillar reported increased demand for construction equipment and on-site power generation.

Power availability has emerged as a critical bottleneck. Morgan Stanley estimates a potential 38-gigawatt power gap for U.S. data centers between 2026 and 2028, as total demand is projected to reach 68 gigawatts. Because grid connection timelines now extend to five or seven years, developers are shifting toward behind-the-meter generation, such as fuel cells and natural gas turbines.

GE Vernova has benefited from this shift, with data center orders in its Electrification business exceeding $5 billion in the first half of 2026, more than doubling its 2025 total. This growth led the company to raise its full-year 2026 guidance for revenue and free cash flow. Morgan Stanley forecasts nearly $2.9 trillion in global data center construction through 2028.