Google Raises 2026 Capex to $195-205 Billion; Big Four Total $725 Billion, Up 77%

Google's second-quarter 2026 earnings report showed the company raised its capital expenditure to 1950 hundred million to 2050 hundred million dollars. The chief financial officer disclosed that Q2 capex was $44.9 billion, with about 60% allocated to servers and 40% to data centers and network equipment. Besides Google, Microsoft, Amazon, and Meta also increased capex; the four companies' combined 2026 capex is about $725 billion, up 77% from 2025. Including China's ByteDance and Alibaba, global AI infrastructure investment approaches $1 trillion.

There is a hard gap in the power transformer sector. According to Wood Mackenzie, the U. S. power transformer gap in 2025 was about 30%, the distribution transformer gap about 10%, and 80% of supply relied on imports. In April 2025, nearly half of U. data center projects were delayed or canceled due to power equipment shortages. Global transformer supplier TBEA has over RMB 80 billion in orders, with domestic production scheduled through end-2027 and overseas through 2028. Sieyuan Electric's 2025 revenue grew 39.3%, overseas revenue reached RMB 5.8 billion, up 85.8%, and its 2026 order target is set at RMB 37.5 billion. Jinpan Technology holds over 40% global market share in dry-type transformers; its solid-state transformer has started sampling, and Q1 2026 data center new orders were RMB 1.735 billion, up 278% year-on-year.

In the energy storage sector, cell manufacturers generally saw revenue growth in Q1 2026. CATL's Q1 revenue rose 52.4%, net profit attributable to parent was RMB 20.74 billion, up 48.5%. EVE Energy's revenue grew 61.6%. Penghui Energy's revenue was RMB 4.77 billion, up 182%, and net profit was RMB 323 million, nine times the same period last year. REPT Battero turned profitable. Growth drivers include: Chinese companies added 366 GWh in overseas energy storage orders in 2025, up 144% year-on-year; suppliers shifted production lines to large cells above 500 Ah, causing a shortage of mature 314 Ah cells; the price of 314 Ah cells rose from RMB 0.31 per Wh at the start of the year to RMB 0.36-0.37 per Wh in July, an increase of over 20% in the first half. From the second half of 2026, large cell capacity above 500 Ah will be released at scale, gradually balancing cell supply and demand. Energy storage integrators' performance diverged: Sungrow Power's prepayments increased to RMB 4.04 billion; Haibo Sichuang's Q1 net profit was RMB 204 million, up 117% year-on-year.

Kelü Electronics expects a first-half 2026 loss of RMB 180 million to RMB 260 million; Midea Group fully subscribed its RMB 2.5 billion private placement.

The liquid cooling sector is in an early expansion stage. July 2026 data shows that China's liquid-cooled server penetration rose from 12% in 2025 to 28%, and AI training server liquid cooling penetration reached 74%. Liquid cooling manufacturers' earnings realization lags: Envicool's Q1 2026 revenue was RMB 1.175 billion, up 26%, with net profit of RMB 8.7 million. Shuguang Shuchuang's revenue grew 782%, with a net loss of RMB 47.59 million. Gaolan Shares' orders in hand increased from RMB 562 million in June 2024 to RMB 1.456 billion in September 2025, up about 1.6 times, and it entered Huawei's coolant distribution unit supplier list.