Google Pledges $75 Billion to Expand Data Centers Despite Tariff Concerns

Alphabet's $75B Data Center Investment Set to Boost AI and Cloud Growth

Apr 10, 2025

Summary

Google is investing $75B to expand its data centers and enhance AI and cloud services, despite ongoing tariff issues

April 10 - Alphabet Inc. (GOOG, Financial) is gearing up for a major spend, reaffirming its plans to pour about $75 billion into its data center and server infrastructure.

At the Google Cloud Next Conference 2025, CEO Sundar Pichai explained that the hefty capex will mainly support upgrades for its AI compute and cloud services. He also mentioned that the company is set to launch its Cloud Wide Area Network, Cloud WAN, which promises over 40% faster performance and similar cost savings. This new network will soon be available to Google Cloud customers.

The announcement comes amid fresh concerns over U.S. tariffs. President Trump recently signaled a temporary easing on some high tariffs, even as pressure on China ramps up, sparking some uncertainty in the tech sector.

Other major players, like Amazon (AMZN, Financial), Meta (META, Financial) and Microsoft (MSFT, Financial), have already invested billions in similar upgrades last quarter and are expected to follow suit in 2025. In a market where infrastructure is king, Alphabet's bold move reflects its confidence in future growth despite the current tariff challenges.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App 中文

Education

Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.