Google to invest US$75bn in 2025 to expand AI and cloud capacity

A render of a data centre created by artificial intelligence (AI). (Image: Adobe Stock)

Alphabet is the parent holding company of Google and Google subsidiaries.

Pichai said, “We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025.”

Not all of the stated investment would necessarily go toward infrastructure construction, however, it is expected that data centre builds and server house schemes will represent a large portion of the allocated funds.

Cross-laminated timber is placed for a Microsoft data centre under construction in northern Virginia. (Image courtesy of Microsoft)

Google chief financial officer Anat Ashkenazi said the company is experiencing capacity bottlenecks to meet growing demand for AI and cloud services.

“We are in a tight supply-demand situation [and] working very hard to bring more capacity online,” Ashkenazi said during the conference.

Last year, Alphabet allocated just more than $50 million for AI and cloud capacity build-out.

In the Q4 report, Google Cloud showed a 30% revenue rise year on year to $12 billion, with full-year revenues for the division up 31% to just more than $43 billion.

Other tech giants have already announced similar goals: Amazon is believed to be planning a $100 billion investment in AI for 2025; it’s Q4 and full-year call are scheduled for 13 February. Microsoft said during its 29 January earnings call it intends to invest $80 billion on AI data centres this year.

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