In 2020, Amazon, Microsoft, Google, and Meta spent about $90 billion on capital expenditure between them. In 2025 they spent roughly $412 billion. In 2026, their own guidance sums to roughly $730 billion — Amazon at $220 billion, Alphabet at $200 billion, Microsoft at $175 billion, Meta at $137.5 billion; Morgan Stanley's tally, adding Oracle, comes to about $805 billion. The 2026 figure is nearly twice 2025's and eight times 2020's. It is also approximately 100 percent of the four companies' combined operating cash flow, against about two-thirds in 2025 — the first time the ratio has reached that level.
The last time an industry built infrastructure at this intensity was fiber. In the five years after the 1996 Telecommunications Act, US carriers poured more than $500 billion into fiber optic cable, switches, and wireless networks. Global telecom stocks lost more than $2 trillion of market value between 2000 and 2002. The fiber itself carried the next two decades of the internet. The infrastructure was real. The equity returns were not.
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