Goldman Sachs Projects Big Tech Will Spend $1.2 Trillion on AI Infrastructure in 2027

Goldman Sachs forecasts Amazon, Alphabet, Microsoft, Oracle and Meta will spend a combined $1.2 trillion on AI infrastructure in 2027, up from roughly $800B in 2026 and above the Wall Street consensus of $1.1T. Relative to GDP, the bank says it would be the largest investment cycle since 19th-century railroad construction. Growth is decelerating fast — from ~100% in 2026 to 54% in 2027 to 12% in 2028 — even as the group needs about $300B in annual AI revenue to justify the spending, with cloud revenue growth accelerating from 25% in 2024 to 48% in Q2 2026.