Google will increase its capital expenditures to $205 billion by the 2026 fiscal year to expand its computing capacity amid rising demand. This figure surpasses previous estimates of $190 billion. Investments are expected to continue growing into 2027. Despite significant infrastructure expansion over the past three years, demand for computing resources still outpaces the scale of investment.

In the second quarter, Google’s cloud division revenues rose by 82%, mainly driven by growth in corporate artificial intelligence products and Google Cloud Platform infrastructure. The company also reported its first income from tensor processor systems deployed in clients’ data centers.

The growth in Google’s capital expenditures reflects a broader trend among major tech companies investing heavily in artificial intelligence infrastructure to meet the increasing computational needs of corporate clients.

According to a report by Synergy Research Group, the total capacity of data centers in the United States is expected to double within three years. The operational capacity of data centers owned by leading companies such as Google, Microsoft, and AWS is projected to double in the next two years, thanks to active infrastructure investments. However, limited electricity availability and local concerns about new data center construction are slowing the implementation of some projects. Nevertheless, developers continue to seek solutions to these challenges, and high demand is fueling further capacity growth.

The development of artificial intelligence, especially agent-based systems, requires substantial computing resources, which intensifies supply shortages as enterprises adopt these technologies on a larger scale. Agent AI places particular strain on outdated IT systems needed to support resource-intensive technologies.

The widespread adoption of AI is leading to increased token consumption, raising concerns about costs for businesses. Tokens are used as a measure of AI usage and are becoming the basis for pricing services among providers. Companies are leveraging AI and tokens to optimize data analysis, manage customer relationships, create agents, automate processes, and enhance cybersecurity.

Over the past year, more than 2,000 enterprises have used over 100 billion tokens, and nearly 500 Google Cloud clients have processed more than 1 trillion tokens.

This week, Google was also fined €890 million ($1.01 billion) by the European Commission for violating the Digital Markets Act. The company was penalized for prioritizing its own services in Google Search and restricting other companies’ ability to direct users to cheaper alternatives.