Hyperscaler capital spending is on pace to reach 785 billion dollars in 2026, and analysts expect that figure to close in on 1 trillion dollars by 2027. Moody's Ratings raised its 2026 forecast by 85 billion dollars from an earlier estimate of 700 billion dollars, citing accelerating investment across the largest cloud and AI infrastructure providers.
The forecast tracks capital spending at Microsoft, Amazon, Meta, Alphabet, Oracle and CoreWeave. Among cloud divisions, Google Cloud Platform revenue grew 63 percent year over year, while Amazon Web Services revenue grew 28 percent, its fastest pace in 15 quarters. Combined, the cloud revenue growth rate at AWS, Microsoft Azure and Google Cloud in the first quarter of 2026 was the fastest since 2021.
AI workloads are driving much of that spending. AWS's AI revenue run rate climbed past 15 billion dollars, while Microsoft's AI revenue run rate topped 37 billion dollars, up 123 percent year over year. Hyperscalers also added roughly 700 billion dollars in remaining performance obligations, contracted future business not yet delivered, over the prior two quarters, much of it tied to demand from AI developers racing to secure computing capacity.
Analysts caution that rising capital intensity and debt levels could pressure hyperscaler creditworthiness if profit growth does not keep pace, even as compute shortages continue to point to a multi year buildout cycle.
Source: DCD - https://www.datacenterdynamics.com/en/news/moodys-hyperscaler-capex-forecasts-marked-up-by-85bn-to-close-in-on-1trn-by-2027/