Morgan Stanley Raises AI Capital Spending Forecasts, Projects $1.2T Data Center Costs by 2027

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According to Morgan Stanley analyst Brian Nowak, on July 14, the bank raised capital expenditure forecasts for Amazon, Meta, and Alphabet, stating that major tech platforms' AI data center spending is not yet peaking. Morgan Stanley now projects AI data center spending across Meta, Amazon, Alphabet, Microsoft, and SpaceX to reach approximately $1.2 trillion in 2027 and further rise to $1.4 trillion in 2028. The firm forecasts Meta's 2028 capital expenditure at around $250 billion, Amazon at roughly $318 billion, and Alphabet's 2027 capex at approximately $350 billion.
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