Alphabet to Spend $75B on Data Centers and AI Plans in 2025

Post by: Omar Nasser

Photo : AP

Alphabet, the company that owns Google, is still going ahead with its big plan to spend $75 billion in 2025. This plan will help build more data centers, even though there are worries about how US tariffs (taxes on goods) are affecting the market. Some people are concerned that these high costs for AI projects could hurt Alphabet, but the company is staying positive.

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Sundar Pichai, the CEO of Alphabet, said this money will be used to buy chips and build new servers. These servers will improve Alphabet’s main services, like Google Search, and will also help create new tools for AI, such as the Gemini model. He said that AI is a huge opportunity for the company and that it’s very important for the future of their business.

The $75 billion investment plan is 29% more than what analysts had expected. Despite concerns about tariffs making things more expensive, Alphabet is still moving forward with its plan. Sachin Gupta, who works for Google Cloud, said that while tariffs might make it more costly to import hardware, there’s still a strong demand from customers, which makes it worth the extra investment.

Recently, US President Donald Trump said that he would lower some of the tariffs on many countries for now, but he would keep high tariffs on China. Even with all this, Alphabet’s stock price went up nearly 10%, which helped increase the value of the big tech companies by $1.5 trillion.

Other companies, like Microsoft, also have big plans for AI. Microsoft plans to spend over $80 billion on AI in 2025, and Meta (Facebook) said it will spend $65 billion.

Even though there are some challenges with the economy right now, companies are still investing a lot in AI and cybersecurity, which are seen as key areas for growth. Many companies that have used Google Cloud for AI are already seeing good results, which is encouraging Alphabet to keep spending money in this area.

Some big companies talked about how AI is helping them. Intuit, the company that makes TurboTax, said it’s going to use more AI in its financial services software. Papa John’s, the pizza company, also said it’s not slowing down its spending on AI because it gives them better results than other types of projects. Verizon shared how using an AI assistant for their customer service team has saved time and helped them make more sales.

In short, even with the extra costs from tariffs, Alphabet is sticking to its plan to invest in new technologies. They believe AI is key to their future success.

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