Alphabet continues ramping capital expenditures to expand AI compute capacity amid supply constraints and accelerating Google Cloud demand, which grew 82% year-over-year to $24.8 billion in Q2 2026 with a $514 billion backlog. First-half 2026 capex reached $80.6 billion, including a record $44.9 billion in Q2, as the company directs the majority toward servers, data centers, and networking to support Gemini models, DeepMind development, and hyperscaler competition. Full-year 2026 guidance stands at $195–205 billion, with executives signaling further increases in 2027. Q3 2026 results, due around October 28, will reveal whether quarterly spending sustains this trajectory or shows any moderation amid free-cash-flow pressure.