Wells Fargo projects hyperscaler compute capacity will double to 98 gigawatts by 2027, driven by surging artificial intelligence demand. The brokerage estimates total capacity reached 49GW at the end of 2025, with Amazon, Microsoft, and Google accounting for about 39GW, or 80% of the total. Industry capacity additions are projected to rise to 22GW in 2026 and 27GW in 2027, exceeding the combined 20GW added in 2024 and 2025.

Alphabet is forecast to remain the leader, adding 19GW to reach 35GW by year-end 2028, while Amazon is seen adding 16GW to 29GW and Microsoft 16GW to 27GW. Oracle is expected to expand capacity to 21GW by 2028, while Meta scales to 11GW. Wells Fargo said compute capacity is becoming the key constraint in cloud models, with shortages spanning chips, power and data center infrastructure.

The firm estimates hyperscaler capital expenditures will nearly double to more than $860 billion by 2027, from $427 billion in 2025, with total spending of $2.47 trillion over 2026 to 2028. Wells Fargo raised its Azure revenue estimates and said its forecasts for AWS and Google Cloud Platform are above Street expectations for 2026 and 2027. The brokerage emphasized that access to compute capacity will be a critical success factor in AI.