The construction of more Google data centers in 2025 in Oklahoma will be part of the company’s massive spending intentions this year following a stunning fourth quarter and full year earnings report.
Not only did Google’s parent company Alphabet report a 48% jump in fourth quarter revenue, but the big tech company plans to spend double what it did in 2025 on new data centers and other technology projects, like the ones it has underway in Oklahoma.
Alphabet reported this week intentions to spend in the range of $175 billion to $185 billion in 2026 capital expenditures. The company already stated in October it planned on a “significant increase” in capex this year. The $185 billion would be far more than the $119.5 billion projected by analysts. Alphabet’s capex in 2025 totaled $91 billion and most of it went on servers and data center infrastructure powering AI.
Google has a major data center in Pryor and is building another data center in Stillwater. Plus, it plans operation of a data center approved this week by the city council in Sand Springs.
It reported a 48% fourth quarter revenue spike from the $17.7 billion in the previous year which is more than the $16.2 billion predicted by analysts.
“The investments that we’ve made in AI — it’s already delivering results across the business,” said Alphabet CFO Anat Ashkenazi on a call with analysts following the company’s earnings release. She said the company intends to develop AI models and also meet demand for its Cloud and Services segments.
Ashkenazi said the capex will go toward more investment in AI computer capacity for Google DeepMind and to meet “significant cloud customer demand as well as strategic investments in other bets.”
The company’s revenue increased nearly 18% year over year and its net income totaled $34.46 billion, up nearly 30% compared to the previous year.
Alphabet and Google CEO Sundar Pichai said Wednesday that its Gemini AI app now has more than 750 million monthly active users, up from 650 million monthly active users last quarter.
“As we scale, we are getting dramatically more efficient,” Pichai said. “We were able to lower Gemini serving unit costs by 78% over 2025 through model optimizations, efficiency and utilization improvements.”
Alphabet’s fourth-quarter profit rose 30% from the prior year to $34.5 billion, or $2.82 per share, while revenue climbed 18% to $113.8 billion.
Earnings per share beat the estimate by nearly 20 cents and the revenue topped estimates by about $2 billion.
- Google Cloud: $17.66 billion vs. $16.18 billion, according to StreetAccount
- YouTube advertising: $11.38 billion vs. $11.84 billion, according to StreetAccount
- Traffic acquisition costs: $16.59 billion vs. $16.20 billion, according to StreetAccount