Google CEO Sundar Pichai has announced that the company still plans to spend $75 billion to expand its data center capacity to support AI. The announcement comes as US President Donald Trump’s new tariffs have created some uncertainty in the data center market, Reuters reports. Pichai said the investment would go toward buying chips and building servers needed to support Alphabet’s core services and AI efforts, adding that “the opportunity around AI is bigger than ever.”
Google first announced major data center investments in February 2025 during its quarterly earnings call. The company plans to spend $75 billion for the year, while Wall Street was only expecting $58 billion. A Google spokesperson has already said that while tariffs could increase the cost of importing equipment, given demand, the investment is still necessary.
The US administration’s tariff plans have not yet been finalized. And while for some countries the introduction of duties has been postponed for 90 days, for China they have sharply increased twice, and the Celestial Empire itself seems to have entered the game with its own duties against the US.
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According to Datacenter Dynamics, after Pichai’s speech, Amazon CEO Andy Jassy wrote a similar stance on data center investments in a letter to shareholders, noting that AI requires significant capital expenditures — the company plans to spend $100 billion by 2025. While Amazon takes years to turn a profit after making investments, the demand for AI is “unlike anything we’ve seen before,” so customers, shareholders, and the company itself will benefit from aggressive investments now in the future. Additionally, AI and accelerators (particularly Amazon’s Tranium2) will become more affordable over time, helped by the increasing efficiency of semiconductors in terms of architecture and caching, and the improvements in the models themselves.
The tech giants’ comments come after Microsoft made headlines for significantly reducing the capacity of its data center projects. The company has since been quick to stress that its overall strategy remains unchanged, with $80 billion still planned for capital expenditures. Microsoft says its data center buildout is a long-term, capital-intensive program that it plans for years to ensure it has enough infrastructure in the right places. Demand for the company’s cloud and AI services has grown more in recent years than it “ever expected,” prompting it to embark on the largest infrastructure scaling in its history.