Google CEO Sundar Pichai stated that securing computing power for 2027 remains a significant challenge. The company's current capacity is the result of strategic decisions made in 2024, prior to the surge in demand for agentic AI systems capable of performing multi-step tasks.
To address immediate needs, Google has utilized short-term leases since 2025. The company is prioritizing its internal AI research and development over immediate revenue when allocating available compute resources.
The infrastructure shortage affects the broader industry, with Amazon Web Services reportedly sold out of capacity through 2028. Currently, tens of gigawatts of data center capacity are in development for 2027.
Market participants have signed over $1 trillion in non-cancellable lease contracts this year, reflecting long-term commitments to infrastructure. Alphabet has projected capital expenditures of $195–205 billion for 2026, primarily focused on AI infrastructure.
