California-based Alphabet, the parent company of Google, will spend more in 2026 for data center construction.
The company plans to invest $175bn-$185bn through 2026, about double from 2025, with the vast majority of that going towards technical infrastructure such as artificial intelligence (AI) development and power-hungry data center construction. Alphabet expects roughly 40pc of its spending to go to data center construction and networking equipment, with the other 60pc going to data servers.
The ratio mirrors its spending proportions in 2025. The company spent $91.4bn on data centers and servers through 2025, with $27.9bn coming in the fourth quarter alone.
Such an investment will support the US steel industry, which has increasingly relied on data center construction and related infrastructure as key drivers of steel demand.
Steel mills and major converters have cited data center construction as an outlet for growth heading into 2026 while more consumer-facing industries, like housing and automotive, were struggling to grow with elevated interest rates straining consumers' borrowing and financing power.
Total private construction spending in the US reached $42.5bn in October 2025 on a seasonally adjusted annual basis, the highest rate posted on record, according to preliminary numbers from the US Census Bureau. October's spending rate was 18pc higher than in 2024 and 78pc higher than 2023 levels.
Alphabet was encouraged by AI development and adoption in the wider economy, saying its service backlog grew by 55pc quarter-over-quarter to $240bn, driven by demand for AI products.
"We've been supply-constrained, even as we've been ramping up our capacity" chief executive Sundar Pichai said when referring to AI capabilities.
