Amazon and Microsoft to Spend $200B Each on AI Data Centers as Investors Demand Returns
luisdans · x · 2026-07-30
Amazon and Microsoft each plan to invest approximately $200 billion in AI data centers this year. As earnings season approaches, investors have stopped applauding massive spending numbers and are now demanding to know when these investments will pay off.
The two tech giants are financing this buildout differently. Amazon is leaning heavily on debt, with free cash flow plummeting from $25.9 billion to $1.2 billion over the past year and bond debt doubling past $120 billion. Microsoft, meanwhile, covers its roughly $35 billion quarterly spend through operating cash flow, maintaining a calmer balance sheet, though funds previously allocated for buybacks are now being diverted to data center construction.
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