According to CNBC, the world’s largest cloud and AI infrastructure providers are on track to spend between $650 billion and $700 billion on capital expenditure in 2026, with the vast majority directed toward artificial intelligence infrastructure.1 Gartner forecasts that worldwide AI spending across all categories will reach $2.52 trillion this year, a 44% increase over 2025.2 For investors in technology-focused strategies, these figures represent one of the most significant capital deployment cycles in modern corporate history.

Where the Money Is Going

The scale of commitment from each hyperscaler is unprecedented. Yahoo Finance noted that planned capital spending for 2026 ranges from approximately $135 billion to $200 billion per company among the largest cloud providers, with Alphabet and Microsoft each committing well over $100 billion.3 Per Bloomberg, approximately 75% of this aggregate capex is directed specifically at AI-related infrastructure, translating to roughly $450 billion in AI-specific investments.4 This includes next-generation data centres, AI-optimised servers, custom chips, and the networking equipment needed to connect it all.

The growth trajectory is remarkable. According to the IEEE Communications Society Technology Blog, combined hyperscaler capex has grown from approximately $256 billion in 2024 to $443 billion in 2025—and is now projected to surpass $600 billion in 2026, representing a 36% year-over-year increase.5 The sheer velocity of the ramp underscores how urgently these companies are racing to build out AI capacity.

Why AI Spending Keeps Accelerating

Several forces are sustaining this investment cycle. First, enterprise adoption of generative AI continues to broaden. Goldman Sachs notes that AI companies may invest more than $500 billion in 2026, driven by the competitive pressure to build and maintain foundational AI models while simultaneously deploying AI across enterprise applications.6

Second, the infrastructure requirements for training and running large language models continue to grow. Each new generation of models demands more compute power, more memory, and more energy—which translates directly into physical data centre construction and server procurement. Gartner projects that AI-optimised servers alone are expected to see spending increase by 49% in 2026, accounting for 17% of total AI spending.2

Third, the competitive dynamics among the hyperscalers themselves are intensifying. None of the major players can afford to fall behind in AI capabilities, creating what some analysts have described as a capex arms race. The result is a self-reinforcing cycle: as each company announces larger budgets, its competitors feel compelled to match or exceed those commitments.

Who Benefits from the AI Buildout

While the hyperscalers are writing the cheques, the dollars are flowing directly into the revenues of the technology companies that supply the infrastructure. Semiconductor companies like Nvidia and Broadcom, whose chips power the bulk of AI training and inference workloads, continue to see demand that outpaces supply. Companies like ASML and Applied Materials, which produce the advanced lithography and fabrication equipment needed to manufacture those chips, sit even further upstream in the value chain.

Cloud platform providers, software infrastructure companies, and cybersecurity firms are also seeing a lift as enterprises expand their AI footprints. According to MarketMinute, the technology sector is expected to see revenue growth of 22.5% in Q1 2026, compared to just 8.8% for the S&P 500 as a whole, with tech sector earnings projected to surge 27.1%.7

This growth, however, brings its own considerations. The concentration of market returns in a handful of technology names has intensified, with the sector now representing over 43% of the S&P 500’s total market capitalisation.7 For investors, this creates both opportunity and concentration risk—a dynamic that makes diversified approaches to technology exposure increasingly relevant.

Accessing NASDAQ Technology Growth with Enhanced Yield Through QQQY

For investors who want exposure to the technology companies at the centre of the AI spending boom while also seeking enhanced income, the Evolve NASDAQ Technology Enhanced Yield Index Fund (QQQY) offers a differentiated approach. QQQY tracks the Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted™ Index, providing focused exposure to technology-classified companies within the Nasdaq-100—names like Apple, Alphabet, Microsoft, Nvidia, Broadcom, and AMD that are supplying and benefitting from the AI infrastructure buildout.

Unlike broader NASDAQ-100 strategies that include consumer, communications, and healthcare companies, QQQY concentrates purely on the technology sector while employing a covered call strategy designed to generate additional income from option premiums. In an environment where AI capex is fuelling strong earnings growth for technology companies, this structure seeks to capture that underlying equity exposure while adding a layer of income generation. The covered call component may be particularly relevant in periods of elevated volatility, when option premiums tend to be higher, potentially enhancing the fund’s income profile.

For more information, visit https://evolveetfs.com/product/qqqy/.