Alphabet, Google’s parent company, said Wednesday it plans a “significant increase” in capital spending next year to expand its AI infrastructure and meet growing customer demand.

The announcement came as Alphabet reported its first-ever $100 billion revenue quarter, exceeding Wall Street expectations for the third quarter. The company said it now expects 2025 capital expenditures to reach $91 billion to $93 billion, up from its previous forecast of $85 billion.

This marks the second upward revision to Alphabet’s capital spending this year, following a July increase from $75 billion to $85 billion, primarily for data center and AI infrastructure projects. Executives also indicated that investment levels will rise further in 2026.