Alphabet is committed to investing approximately $75bn in expanding its data centre infrastructure this year, despite concerns over rising capital costs and mounting uncertainty surrounding US trade policy, according to a report by Reuters.
The technology giant reiterated its strategy during its annual cloud computing conference.
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The comment comes as US President Donald Trump raised the tariff charged to China by the US to 125% and authorised a 90-day pause on his plans for tariffs for more than 75 nations.
Alphabet CEO Sundar Pichai was quoted by the publication as saying that the significant capital outlay would fund the acquisition of chips and the construction of servers to support core services such as Search, as well as the advancement of AI tools including its Gemini model.
“The opportunity with AI is as big as it gets,” he added.
The investment, initially disclosed in February 2025, exceeds previous analyst expectations by 29%.
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By GlobalDataAlphabet CFO Anat Ashkenazi had said that the majority of the capital expenditure for 2025 is planned to be allocated to the construction of servers and data centres.
The company is said to maintain momentum in its AI initiatives amid growing competition and a rapidly evolving technological landscape.
Responding to queries about the potential impact of tariffs on infrastructure costs, Google Cloud infrastructure division vice-president and general manager Sachin Gupta acknowledged that hardware import costs may rise. However, he noted that robust customer demand continues to justify the scale of investment.
“We’re all processing what’s happening with tariffs,” Gupta said.
Other major tech companies have similarly outlined aggressive AI infrastructure spending.
A Microsoft executive reaffirmed in a recent LinkedIn post that the company plans to invest over $80bn in AI infrastructure in 2025 while Meta Platforms indicated it may spend up to $65bn.
In March 2025, it was reported that Alphabet revived plans to acquire cloud-security company Wiz for $33bn after the talks failed to materialise in 2024.
This move could strengthen Google’s position in the cloud computing sector, enhancing its ability to compete with industry leaders Microsoft and Amazon. e cloud computing sector, enhancing its ability to compete with industry leaders Microsoft and Amazon.
