Morgan Stanley predicts: Technology giants will invest US$30 billion in building large-scale data centers in 2025
1min read Morgan Stanley predicts that the tech giants Amazon (AMZN.US), Google (GOOGL.US), Microsoft (MSFT.US) and Meta (META.US) will collectively invest approximately $300bn in large-scale capital expenditure by 2025, mainly to support the development of generative AI and large language models. The massive investment plan highlights the significant long-term opportunities for these companies in AI-driven innovation.
Among these companies, Amazon and Microsoft are expected to have the highest spending, at $96bn and $89bn respectively. Google and Meta are expected to spend $62bn and $52bn respectively. These investments reflect the strategic expansion directions of the companies, with Google focusing on increasing revenue through improved search, YouTube and other products, and Meta focusing on efficiency, productivity and lean operations, while Reels' engagement and monetization are also improving.
Microsoft, with its ongoing progress in public cloud adoption and AI, is the largest spender in this area. Morgan Stanley analyst Brian Nowak said that the strong growth of its commercial business will bring multiple expansions and positive valuation revisions in the next few years.
Meanwhile, Amazon is expected to invest the most in its large-scale plans in 2025. Nowak noted that Amazon's high-profit businesses allow it to maintain a high profitability while continuing to invest. He also mentioned that cloud computing is in a long-term adoption cycle spanning decades, and Amazon's share in e-commerce/retail and in consumers' wallets is increasing.
Overall, the massive investments by these tech giants in AI and cloud computing not only reflect their confidence in future growth, but also foreshadow a more prosperous development in these areas.