Google Adds 10 Billion Capital Expenditure to Accelerate Data Center Construction

Alphabet Group is fully committed to advancing its data center expansion plan. As the outstanding orders for its cloud business exceed $100 billion, the company announced that it will increase its capital expenditures for the year 2025.

Chief Financial Officer Anat Ashkenazi stated during the earnings conference call that the company plans to increase capital expenditures by $10 billion, bringing total expenditures to $85 billion by 2025. She emphasized that this funding will mainly be used for server procurement and accelerating data center construction. Ashkenazi also revealed that capital expenditures are expected to further increase in 2026.

Meanwhile, Alphabet CEO Sundai Pichai pointed out that Google Cloud’s undelivered orders increased by 38% year-on-year, reaching $106 billion. Ashkenazi added that the department “signed multiple transactions worth over $1 billion in the first half of the year,” fully confirming the growth in market demand.

“We have been working hard to increase production capacity and accelerate server deployment speed, “Ashkenazi said.” We expect the tight supply and demand situation to continue until early 2026.”

According to the financial report, Google Cloud’s revenue increased by 32% to $13.6 billion in the second quarter, and operating profit jumped from nearly $1.2 billion in the same period of 2024 to $2.8 billion. Pichai revealed that Google Cloud’s annualized revenue has now exceeded $50 billion.

Dan Salmon, an analyst at New Street Research, pointed out in a report to investors that the demand for Google’s cloud infrastructure “comes from both the sustained strong demand for AI infrastructure and the increasing recognition of GOOGL’s customized AI computing chip advantages in the market.” However, he also warned that the supply capacity of chips and GPUs will greatly affect the quarterly revenue performance of Google and other public cloud providers.

During the conference call, Pichai also shared key data on cloud services and AI business:

-The number of tokens processed by Google AI system per month has increased from 480 trillion in May to 980 trillion

-Gemini app monthly active users exceed 450 million

-The number of new customers on Google Cloud platform increased by nearly 28% month on month

-The open-source proxy development toolkit has been downloaded over 1 million times within four months of its release

-AgentSpace, an enterprise level chat search platform, has received over 1 million subscriptions before its official release