Amazon Among Tech Giants Planning $635B AI Capex, Energy Costs Could Trigger Cuts
Amazon is among tech giants planning $635B of AI infrastructure investments in 2026, up from $383B in 2025 and $80B in 2019. Persistent high oil prices from the Middle East conflict could force capex revisions in Q1 and Q2, potentially weighing on Amazon's growth outlook and equity valuation.
1. Rapidly Rising AI Capex Plans
Industry research projects $635B of AI infrastructure capex in 2026, up from $383B in 2025 and $80B in 2019, highlighting Amazon's need to scale data centers and chip investments to meet accelerating AI demand.
2. Energy Cost Pressures
Rising oil prices from Middle East tensions threaten to increase electricity costs for Amazon’s data centers, raising prospects of capital expenditure reductions in early quarters that could temper AWS expansion and pressure the company’s market valuation.