US Hyperscalers' Capex to Almost Triple to $1.4T by 2027: Goldman Sachs

U.S. hyperscalers' capital expenditure is expected to triple to $1.4 trillion between 2025 and 2027, according to Goldman Sachs Global Investment Research. This significant increase in infrastructure investments is expected to drive growth in the tech industry, with major players such as Amazon, Microsoft, and Alphabet leading the charge.

U.S. tech giants, commonly referred to as hyperscalers, are poised to significantly increase their infrastructure investments, with a projected capital expenditure (capex) of almost $1.4 trillion between 2025 and 2027, according to Goldman Sachs Global Investment Research U.S. hyperscalers’ capex to almost triple to $1.4T by 2027, Goldman Sachs says^[1]. This substantial rise in spending is driven by robust demand for artificial intelligence (AI) infrastructure and cloud computing capacity.

The expected surge in capex comes amid a significant increase in AI-related investments. Between 2022 and 2024, hyperscalers collectively spent approximately $485 billion in capex U.S. hyperscalers’ capex to almost triple to $1.4T by 2027, Goldman Sachs says^[1]. The primary drivers of this increase are Amazon Web Services (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) (GOOG). Microsoft's capex is forecasted to rise to $376 billion by the 2025-2027 period, up from $76 billion in 2024. AWS is expected to see its capex jump to $321 billion during the same period, up from $49 billion in 2024. Meta (META) is projected to spend $279 billion, while Alphabet's expected capex stands at $304 billion. Oracle (ORCL) is expected to spend $115 billion by 2027, up from $11 billion in 2024 U.S. hyperscalers’ capex to almost triple to $1.4T by 2027, Goldman Sachs says^[1].

This aggressive investment spree is not confined to individual companies but is part of a broader trend reshaping the tech sector and global markets. The global financial markets are witnessing an unprecedented surge in AI infrastructure spending, with projections for overall global AI investment to reach $2 trillion by 2026 The AI Infrastructure Gold Rush: Billions Pour In, Reshaping Tech and Markets^[2]. As of October 2025, major tech giants are pouring hundreds of billions into building the foundational hardware and cloud capabilities necessary to power the next generation of AI, driving U.S. stock market gains and economic growth.

The immediate implications of this investment spree are clear: companies providing the "picks and shovels" for AI, such as semiconductor manufacturers, cloud computing services, and specialized data center providers, are experiencing boom times. However, this capital-intensive race also raises questions about sustainability, market concentration, and the potential for a new kind of "AI bubble" if returns don't materialize as quickly as investments The AI Infrastructure Gold Rush: Billions Pour In, Reshaping Tech and Markets^[2].

The AI infrastructure spending boom is creating a clear hierarchy of beneficiaries. Chip manufacturers like Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) are benefiting significantly from increased demand for AI hardware. Cloud service providers such as Microsoft (MSFT) and Amazon (AMZN) are also experiencing robust growth, fueled by AI demand. Specialized AI cloud providers like CoreWeave are seeing revenue growth as they support AI development. However, smaller or overleveraged data center builders and companies with high R&D costs and margin pressures may face challenges if these massive expenditures do not consistently translate into profitability The AI Infrastructure Gold Rush: Billions Pour In, Reshaping Tech and Markets^[2].

In conclusion, the projected tripling of U.S. hyperscalers' capex to $1.4 trillion between 2025 and 2027 represents a significant shift in the tech industry, driven by the growing demand for AI infrastructure and cloud computing capacity. This investment surge has far-reaching implications for investors, businesses, and society at large, and it is crucial to monitor the sustainability and potential risks associated with this rapid growth.