Alphabet raised 2025 capex to $85 billion on July 23

TL;DR: Alphabet said on July 23, 2025, that it increased planned 2025 capital expenditure to $85 billion, up from $75 billion, as Google Cloud revenue grew 32% year over year to $13.6 billion in the second quarter. The company said demand for cloud and artificial intelligence capacity exceeded available supply.

Alphabet said on July 23, 2025, that it increased planned 2025 capital expenditure to $85 billion from $75 billion. The company tied the higher spending plan to infrastructure demand for Google Cloud and artificial intelligence workloads.

Google Cloud reported $13.6 billion in second-quarter revenue, up 32% from a year earlier. Alphabet said cloud demand remained strong, but that customer demand for AI and cloud services was higher than the capacity it had available.

Alphabet’s higher spending plan reflects the cost of expanding data center and computing infrastructure for AI services. The report from Fierce Network described the increase as a sign that Google Cloud growth is continuing while Alphabet’s AI buildout is requiring more cash.

Related questions

• How much did Alphabet increase its 2025 capital expenditure plan?
• What was Google Cloud’s revenue growth in the second quarter?
• Why did Alphabet say it needed to raise AI and cloud infrastructure spending?