Google's $91–93B AI Expansion Drives NVIDIA's Revenue Surge in 2025

Google’s AI ambitions are reflected in its soaring capital expenditures. In 2025, the company’s spending surged to $91–93 billion, , with a significant portion allocated to AI infrastructure. This includes servers, storage, power systems, and chips for Search, Ads, YouTube, Gemini, and Google Cloud. NVIDIA remains a key supplier, with Google among its top three direct customers. In Q2 FY26, .

Despite its partnership with NVIDIA, Google faces challenges in balancing its AI hardware investments with revenue growth. GPU expenditures have risen at a faster pace than Google Cloud’s revenue, . This trend could pressure cash flows and returns on investment, prompting Google to seek ways to optimize its reliance on NVIDIA's CUDA-based ecosystem.

Global AI Expansion

Google’s AI strategy extends beyond Taiwan. In the Netherlands, the company opened a new data center in Winschoten, expanding its Europe-west4 cloud region. The facility, part of a €3.8 billion investment in Dutch infrastructure, incorporates sustainable practices like waste heat reuse and solar panels. The Netherlands has become a focal point for Google’s AI expansion, with three data centers operational and a fourth under construction. The company’s investments in renewable energy and water treatment further align with its sustainability goals.