Amazon and Microsoft will each spend about $200B on AI data centers this year
fortune · reddit · 2026-07-28
Amazon and Microsoft are each set to spend about $200B this year on data centers, putting their AI cloud rivalry at an unprecedented level of capital intensity.
The article says investors will soon get fresh signals from Microsoft’s and Amazon’s quarterly results, but the key question is whether the huge spend on AI infrastructure will translate into returns fast enough to satisfy Wall Street.
What investors will watch
- AWS and Azure revenue growth
- Profit margins
- Customer backlog
- The payback timeline for massive AI capex
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