Alphabet reported nearly $110 billion in total revenue in Q1 2026, a 22% increase year over year, with growth driven in part by Google Cloud, which reached roughly $20 billion in quarterly revenue.
On its Wednesday, April 29 earnings call, Alphabet, the parent company of Google, highlighted how aggressively it is scaling infrastructure spending. Capital expenditures (capex) totaled $35.67 billion in the first quarter, up 106% from a year earlier. This surge is part of a much larger strategy and in its February earnings call, the company outlined plans to spend between $175 billion and $185 billion in capex for the full year, up sharply from $91.4 billion in 2025.
Alphabet executives acknowledged that rising energy costs associated with its expanding data center footprint are driving higher expenses. At the same time, the company said user behavior continues to evolve alongside AI, with a growing share of queries now incorporating voice and image inputs. The company noted that nearly one in six AI Mode queries are non-text-based. Circle to Search, which allows users to search by circling or tapping on content directly on their screen without switching apps, is now available on more than 580 million Android devices.
AI and data centers have become major topics in the RBN blogosphere, largely due to their high electricity consumption. Whether that power is sourced from natural gas or alternative energy remains a key question shaping the broader discussion. Check out our newest Drill Down Report: Go Speed Racer Go on the data center build‑out.
