The cloud operators must generate roughly $300 billion in annual AI revenue to break even on these investments, according to the firm. Goldman estimates that spending surprises of $250 billion in either direction next year could shift S&P 500 earnings growth by about 6 percentage points. Total investment across compute, data centers, and power may reach $7.6 trillion by 2031 as the primary bottle neck shifts from chip production to available power and physical infrastructure.
Tuesday, October 20, 2026
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Goldman Projects $1.2 Trillion AI Spend for Top 5 US Hyperscalers in 2027
AI25 days ago
Amazon, Alphabet, Microsoft, Oracle and Meta will expand their data center footprints and energy procurement to support new machine learning workloads. Goldman Sachs strategists forecast these firms will spend $1.2 trillion on AI infrastructure in 2027, a 54% increase from 2026, and $1.4 trillion by 2028. This figure for 2027 is above the Wall Street consensus target of $1.1 trillion, though the annual growth rate is expected to slow from nearly 100% this year to 12% by 2028.
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