Microsoft holds steady on data center spending as peers face cash flow issues

There’s a spending war happening in Big Tech, and the ammunition is measured in GPUs and concrete. Microsoft, Amazon, Alphabet, and Meta are collectively pouring money into AI data centers at a pace that would make a sovereign wealth fund blush, with combined capital expenditure projections for 2026 reaching up to $630 billion. That’s a 62% jump from the $388 billion these four companies spent in 2025. Microsoft, though, appears to be playing the game with a slightly different hand. While it’s still spending aggressively, exceeding $120 billion in projected 2026 capex, the company is positioning itself as the more disciplined allocator in a group where free cash flow is starting to look like a casualty of war. The numbers behind the AI arms race Amazon is leading the charge with the biggest wallet. The company’s Q2 2026 capital expenditure hit approximately $53 billion, a 69% increase compared to the same period last year. Its full-year 2026 spending could approach $200 billion. Alphabet isn’t far behind, with projected spending between $175 billion and $185 billion for the year. Meta sits in the $115 billion to $135 billion range. Microsoft and Meta both reported quarterly capex i...