# capital expenditure
Latest news and articles about capital expenditure
Total: 8 articles found
Meta Commits $10bn+ to a 1‑Gigawatt AI Data Hub in Indiana — Big Bet on Power, Not Just Servers
Meta has started building a more than $10 billion, 1‑gigawatt data centre in Lebanon, Indiana, to serve AI and core product workloads. The project underscores the massive power, water and infrastructure demands of generative‑AI at scale and highlights the trade‑offs between local impacts and corporate investment.
SMIC Projects Roughly 40,000‑Wafer Monthly Capacity Gain in 2026 but Flags Rising Depreciation
SMIC expects its monthly capacity to rise by about 40,000 12‑inch wafer equivalents by the end of 2026 over last year, but warns that early equipment purchases may not immediately translate into full production. Heavy capital spending will lift depreciation by around 30% year‑on‑year in 2026, squeezing margins unless utilization and cost efficiency improve.
Alphabet Prepares $15bn Bond Sale to Fuel an AI Spending Boom — Even as Investors Warily Watch for Oversupply
Alphabet is seeking about $15 billion in a multi‑tranche bond sale to help fund a sharply higher capital expenditure plan focused on AI infrastructure, including long‑dated maturities and potential foreign‑currency issuance. The offering underscores how major tech firms are increasingly relying on debt to finance a costly AI arms race that has drawn strong investor demand but raised concerns about overinvestment and long‑term returns.
Google Goes All‑In on AI: $180bn Capex Bet Turns Search Giant into Infrastructure Warfighter
Alphabet reported strong 2025 results, with revenue growth and rising search and cloud momentum, yet surprised markets by guiding roughly $180 billion of capital expenditure for 2026 to accelerate AI infrastructure. The plan deepens Google’s hardware‑and‑energy play, raises barriers to competition and creates short‑term pressures on earnings through higher depreciation and cash burn.
Wall Street Edges Up as Amazon’s $200bn Capex Shock Sends Storage Stocks Higher
U.S. stock indexes opened higher while Amazon tumbled over 9% after announcing a $200 billion capital expenditure plan, triggering investor concern. Storage suppliers such as SanDisk and Western Digital gained on expectations of increased demand from cloud and data-centre expansion.
Amazon’s $200bn AI Gamble Roils Markets Despite Robust Quarter
Amazon beat expectations in Q4 with solid revenue and profit growth, but its pledge to raise 2026 capital expenditure to roughly $200 billion — driven by AI infrastructure and other strategic projects — alarmed investors. The stock fell sharply as markets weighed the risk that such heavy spending could outstrip near‑term cash flow and returns. The outcome will hinge on whether Amazon can convert large upfront investments in data centres, custom chips and networking into durable, high‑margin cloud and AI services.
Wall Street’s AI Bill: Microsoft’s $381bn Market Shock and the Hard Question for Tech Giants
A recent sharp sell‑off wiped about $381 billion off Microsoft’s market value after Azure growth showed signs of slowing and the company flagged more than $100 billion of capital spending for the year. The market reaction underscores a broader investor scepticism about whether massive AI‑related investments across big tech will be monetised, shifting the emphasis from spending to demonstrable returns.
China’s Big Tech Turns Spring Festival Red Envelopes into an AI Battleground
Tencent’s recent 1 billion yuan Spring Festival giveaway has escalated a familiar marketing ritual into a proxy arena for China’s AI race. Big tech firms are shifting from model-centric competition to full-stack battles that combine massive capital expenditure, distributional advantage and ecosystem playbooks, with 2026 poised as a potential inflection point for AI monetisation.