Microsoft says it now expects total 2026 capital expenditure to reach about $190 billion, with $25 billion of the increase driven by surging memory and storage component prices amid AI-infrastructure demand — underscoring the spiralling cost of the AI buildout.
The Numbers
- 2026 capex: ~$190 billion
- +$25bn of the rise from memory/storage price surges
- Driven by AI data-centre demand
- Part of Big Tech’s projected ~$700bn AI capex this year
Why It Matters
- Shows AI infrastructure costs accelerating, not easing
- Memory-price inflation now a macro factor for the sector
- Pressures margins and sharpens scrutiny of AI returns
- Microsoft also pledged $1bn+ for AI/cloud in Thailand
What To Watch
- Whether memory prices keep climbing through 2026
- Investor patience with mega-capex vs returns
- Knock-on effects for cloud + hardware pricing
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