The Infrastructure Arms Race
Google, Microsoft, and Amazon are spending more on AI infrastructure than most countries' GDP. The scarcity is chips and power, not customers.
Three companies are now in a capex spending war that dwarfs anything in tech history. Google raised its 2025 capex guidance to $91–93 billion. Microsoft spent $19.4B in a single quarter — 30% more than last year. Amazon added 3.8 gigawatts of power capacity and launched Project Rainier with 500,000 custom AI chips.
This isn't speculative. Google Cloud grew 34% with $155B in backlog. Azure grew 40%. AWS re-accelerated to 20%. The demand is real and the constraint is physical infrastructure — chips, power, and data center space.
For operators, this means two things. First, if you're selling infrastructure components (networking, cooling, power management), this is a generational tailwind. Second, the cloud providers are building moats that will take years to replicate. Your choice of cloud provider is becoming a 5-year strategic commitment, not an annual vendor review.