Report published August 24, 2026
Booked, But Not Built Yet: Hyperscaler Cloud Backlog Outpaces CapEx Growth
Source and citation context
- Report date
- August 24, 2026
- Analysis as of
- August 24, 2026
Finvaulta summarizes Fred Alger Management, LLC's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
The aggregate cloud backlog for Amazon, Alphabet, and Microsoft has surged past $1.6 trillion in mid-2026, growing 150% year-over-year and outpacing CapEx growth of 77%. This widening spread indicates that the ongoing AI infrastructure buildout is backed by solid customer demand rather than speculative overbuilding.
Key Takeaways
- 1.Aggregate cloud services backlog for Amazon, Alphabet, and Microsoft expanded by over $1.2 trillion from ~ $400 billion in 2023 to more than $1.6 trillion in mid-2026.
- 2.Cloud backlog grew over 150% over the last 12 months, significantly outpacing the 77% growth in trailing-twelve-month CapEx, signaling that AI capacity additions remain demand-driven rather than speculative.
- 3.Enablers across semiconductors, networking, power, cooling, and infrastructure software stand to benefit from a durable multi-year AI investment cycle.
Table of Contents
- Alger On The Money
- Booked, But Not Built Yet
- Large Cloud Service Providers' Backlog vs. Capital Expenditures (in Billions)
- Risk Disclosures
- Important Information for US Investors
- Important Information for UK and EU Investors
- Important information for Investors in Israel
Report data
Large Cloud Service Providers' Backlog vs. Capital Expenditures (in Billions) — as of August 24, 2026.
| Metric | Estimate | Context |
|---|---|---|
| Aggregate Cloud Services Backlog (Amazon, Alphabet, Microsoft) | 1.6 USD Trillion | Aggregate backlog representing contracted cloud demand not yet recognized as revenue. |
| Trailing Twelve Months Capital Expenditures (Amazon, Alphabet, Microsoft) | 400 USD Billion | Annual capital expenditures on cloud and AI data center capacity. |
| 12-Month Cloud Services Backlog Growth | 150% | Growth rate of contracted cloud backlog across Amazon, Alphabet, and Microsoft. |
| 12-Month Hyperscaler CapEx Growth | 77% | Growth rate of capital expenditures across Amazon, Alphabet, and Microsoft. |
Reports in this series
Alger On The Money is shown in chronological order through this edition, published on August 24, 2026.
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Reported Data Context
- Aggregate Cloud Services Backlog (Amazon, Alphabet, Microsoft): 1.6 USD Trillion (Mid-2026) · Source: Company filings, FactSet, Alger estimates
- Trailing Twelve Months Capital Expenditures (Amazon, Alphabet, Microsoft): 400 USD Billion (Mid-2026) · Source: Company filings, FactSet, Alger estimates
- 12-Month Cloud Services Backlog Growth: 150 percent (Trailing 12 Months to Mid-2026) · Source: Company filings, FactSet, Alger estimates
- 12-Month Hyperscaler CapEx Growth: 77 percent (Trailing 12 Months to Mid-2026) · Source: Company filings, FactSet, Alger estimates