Meta’s 2026 Capital Expenditures Exceed Most Military Budgets

Summary

Meta plans to spend up to $145 billion in capital expenditures in 2026, a 101% increase from 2025, according to the company. The increase is attributed to higher component prices, data center costs, and AI infrastructure needs. CEO Mark Zuckerberg said AI will be a “significant portion” of the total spend. Meta’s capex exceeds the military budgets of most countries, according to the Stockholm International Peace Research Institute. The company also projects total expenses in 2026 to reach up to $169 billion, including AI talent and infrastructure spending.

Our Reading

The numbers tell one story.

Meta’s capex is a sprint, not a marathon.

Zuckerberg calls AI a “significant portion” of the spend.

The company’s spending outpaces most countries’ military budgets.

AI is a growth engine, not just a cost center.

Author: Evan Null

Bills for big tech

Meta’s capital expenditures have surged as the company shifts focus toward AI. In 2026, the company is forecasting up to $145 billion in capex, a significant jump from $72.2 billion in 2025. This increase is driven by higher component prices, data center costs, and AI infrastructure needs. Meta also projects total expenses in 2026 to reach up to $169 billion, which includes higher compensation and recruitment of AI talent. The company’s capex now exceeds the military budgets of most countries, according to the Stockholm International Peace Research Institute.

Meta’s AI push

Meta’s investment in AI is not just about internal use. CEO Mark Zuckerberg emphasized that the company is building new personal agents and exploring enterprise opportunities, including APIs, business agents, and selling compute directly to large customers. The company sees AI as a way to improve user experiences, drive better performance for advertisers, and build new products faster. Zuckerberg described 2026 as a pivotal year for Meta’s AI efforts, with AI accelerating every major part of its core business.

AI spending across tech giants

Meta is not alone in its AI spending spree. According to a Reuters report, Alphabet, Amazon, Meta, and Microsoft are on track to spend about $730 billion on AI in 2026, up from previous estimates of $600 billion. This reflects the growing importance of AI in the tech sector, with companies investing heavily in infrastructure, talent, and cloud services. Meta’s spending is part of a broader trend, as companies race to stay ahead in the AI race.

Meta’s financial history

Meta’s capex has grown rapidly over the past few years. In 2023, the company spent $28.1 billion on property and equipment, rising to $39.23 billion in 2024 and $72.22 billion in 2025. This exceeded the company’s own forecasts, as Meta had initially projected 2025 capex to reach up to $65 billion. The company’s 2025 capex was also higher than its previous projections, showing the accelerating pace of investment in AI and infrastructure.

Industry reaction and future outlook

Zuckerberg’s comments suggest confidence in the long-term potential of AI, even as the company faces rising costs. The CEO emphasized that AI is accelerating Meta’s core business, powering new products, and opening up enterprise opportunities. However, the scale of spending raises questions about whether the returns will match the investment. With the AI race intensifying, companies like Meta are betting big on the future, even as the financial implications remain uncertain.