Amazon, Alphabet, Microsoft, and Meta saw their total physical assets reach $1.46 trillion at the end of June due to rapid artificial intelligence investments. An analysis by Nikkei Asia showed the property, plant, and equipment assets of the four technology giants grew 140 percent over the past three years. In the last year alone, their total physical assets rose by 48 percent.
Amazon holds the largest volume of physical assets among the group, with its total property, plant, and equipment reaching $538.7 billion. The company nearly doubled its physical assets over the last three years, moving ahead of oil producer Saudi Aramco, which was the largest non-financial company in the world last year.
Alphabet and Microsoft each reported physical assets exceeding $330 billion. Those valuations place both companies ahead of energy corporations Exxon Mobil and PetroChina in terms of physical asset size. Meta holds the smallest physical asset base in the group, but its properties are now worth more than twice those of automaker Toyota.
Capital spending and data centers
The expansion in physical assets stems primarily from investments in artificial intelligence infrastructure, including data centers, advanced servers, and networking hardware. At Alphabet, technical infrastructure such as servers, network equipment, land, and data center buildings accounts for more than 70 percent of total property, plant, and equipment.
Total capital expenditures for Amazon, Alphabet, Microsoft, and Meta could reach $760 billion in 2026. That estimate represents an increase of roughly 85 percent compared to the previous year. The spending marks a shift for technology companies that previously focused on software, advertising, and digital services, as they now invest heavily in power, data centers, and network facilities to support artificial intelligence.
Off-balance-sheet commitments and debt
Rapid infrastructure growth has also increased off-balance-sheet financial obligations for the four companies. By the end of June, Amazon, Alphabet, Microsoft, and Meta held approximately $2.3 trillion in off-balance-sheet obligations, including long-term equipment purchases and lease commitments. That total is more than four times higher than the figure recorded one year earlier.
These obligations are described as hidden debt because they can convert into physical assets over time. Alphabet saw its off-balance-sheet commitments multiply nine times in the past year, while Meta experienced an eightfold increase. A separate Nikkei Asia analysis of five companies, including Oracle alongside the four firms, found off-balance-sheet obligations grew nearly eightfold over four years to approach $1.65 trillion, surpassing their combined reported balance-sheet debt of roughly $1.35 trillion.
Depreciation expenses and profit pressures
Massive infrastructure investments carry significant operating costs that may weigh on profitability. Artificial intelligence hardware generally has an estimated useful lifespan of about five years, requiring companies to write off investments as expenses quickly. As new data centers and servers come online, depreciation costs rise.
Total depreciation expenses for the four companies reached $44.5 billion during the April to June period. That total equaled approximately one-third of their combined operating profit for the quarter. Meta cited rising depreciation costs as a factor in the first decline of its operating profit in three years. Market projections indicate annual depreciation expenses for the four tech firms could reach about $360 billion by 2028, nearly doubling the level expected for 2026.
