{"id":28991,"date":"2025-02-08T12:15:30","date_gmt":"2025-02-08T20:15:30","guid":{"rendered":"https:\/\/essential.construction\/news\/google-plans-75b-investment-to-build-out-cloud-ai-capacity\/"},"modified":"2025-02-08T12:15:30","modified_gmt":"2025-02-08T20:15:30","slug":"google-plans-75b-investment-to-build-out-cloud-ai-capacity","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/google-plans-75b-investment-to-build-out-cloud-ai-capacity\/","title":{"rendered":"Google plans $75B investment to build out cloud AI capacity"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">3 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"http:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1738855433\/news\/text_to_speech\/google-cloud-generative-ai-data-center-capacity-buildouts_wyjzi8.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3 class=\"standard-heading\"><strong>Dive Brief:<\/strong><\/h3>\n<ul>\n<li>Google plans to increase capital investments to $75 billion this year in an effort to expand its AI and cloud capacity, CEO Sundar Pichai said Tuesday in the company\u2019s <a rel=\"nofollow noopener\" href=\"https:\/\/abc.xyz\/assets\/a3\/91\/6d1950c148fa84c7d699abe05284\/2024q4-alphabet-earnings-release.pdf\" target=\"_blank\">Q4 2024 earnings report<\/a>. The company spent $52.5 billion in capital expenditures in 2024.<\/li>\n<li>Google will direct the majority of its growing CapEx to relieving capacity bottlenecks through upgrades to infrastructure, including cloud servers and data centers, CFO Anat Ashkenazi said during <a rel=\"nofollow noopener\" href=\"https:\/\/abc.xyz\/2024-q4-earnings-call\/\" target=\"_blank\">a Tuesday earnings call<\/a>.<\/li>\n<li>\u201cWe exited the year with more demand than we had available capacity,\u201d Ashkenazi said. \u201cWe are in a tight supply demand situation, working very hard to bring more capacity online.\u201d<\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><strong>Dive Insight:<\/strong><\/h3>\n<p>Massive AI infrastructure investments are the new normal in cloud. Capacity constraints are a common theme, too.<\/p>\n<p>Microsoft promised in January to spend $80 billion on AI-enabled data centers <a rel=\"nofollow noopener\" href=\"https:\/\/www.ciodive.com\/news\/microsoft-azure-cloud-capacity-constraints-openai\/738810\/\" target=\"_blank\">during its current fiscal year<\/a>\u00a0and said it was <a rel=\"nofollow noopener\" href=\"https:\/\/www.ciodive.com\/news\/microsoft-azure-cloud-capacity-constraints-openai\/738810\/\" target=\"_blank\">vexed by power and capacity shortages<\/a>\u00a0during the final quarter of last year.\u00a0<\/p>\n<p>Amazon, which reports earnings Thursday, was projected to spend $75 billion on capital investments last year, the majority of which was to \u201csupport the growing need for technology infrastructure,\u201d CFO Brian Olsavsky said during <a rel=\"nofollow noopener\" href=\"https:\/\/seekingalpha.com\/article\/4731865-amazon-com-inc-amzn-q3-2024-earnings-call-transcript\" target=\"_blank\">an October earnings call<\/a>.<\/p>\n<p>\u201cWe have more demand that we could fulfill if we had even more capacity today,\u201d Amazon CEO Andy Jassy said during the call. \u201cPretty much everyone today has less capacity than they have demand for, and it&#8217;s really primarily chips that are the area where companies could use more supply.\u201d\u00a0<\/p>\n<p>Pichai touted gains in data center efficiency through Google\u2019s deployment of in-house TPU chips and <a rel=\"nofollow noopener\" href=\"https:\/\/cloud.google.com\/blog\/products\/ai-machine-learning\/introducing-cloud-tpu-v5p-and-ai-hypercomputer\" target=\"_blank\">AI Hypercomputer architecture<\/a>\u00a0Tuesday. \u201cWe develop every component of our technology stack, including hardware, compilers, models and products,\u201d he said. \u201cThis approach allows us to drive efficiencies at every level from training and serving to developer productivity.\u201d<\/p>\n<p>As data center construction progressed, Google Cloud saw fourth quarter revenues grow 30% year over year to $12 billion. Cloud segment revenues for the full year were up 31% to $43.4 billion.<\/p>\n<p>The company plans to invest roughly $16 billion to $18 billion in capital expenditures during the first quarter, according to Ashkenazi.<\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/google-cloud-generative-ai-data-center-capacity-buildouts\/739417\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback. Dive &#8230; <a title=\"Google plans $75B investment to build out cloud AI capacity\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/google-plans-75b-investment-to-build-out-cloud-ai-capacity\/\" aria-label=\"Read more about Google plans $75B investment to build out cloud AI capacity\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-28991","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/28991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=28991"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/28991\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=28991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=28991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=28991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}