Google Cloud customers spending 50% above commitments as AI demand drives record quarter

Google Cloud CEO Thomas Kurian dropped a number on July 23 that should make every cloud competitor nervous. Existing customers are spending roughly 50% more than their committed amounts, a figure that reflects just how deeply enterprises are embedding AI into their operations. The spending surge isn’t theoretical. It showed up in Alphabet’s Q2 2026 earnings report, where Google Cloud revenue hit $24.8 billion, an 82% year-over-year jump from $13.6 billion. Analysts had penciled in roughly $22.4 billion, which means Google Cloud beat expectations by more than $2 billion in a single quarter. The numbers behind the momentum Google Cloud had already posted 63% year-over-year growth in Q1 2026, when revenue came in at $20 billion. So the growth is actually accelerating, which is the kind of trajectory that makes CFOs giddy and competitors anxious. Perhaps the most striking figure in the entire report is the backlog. Google Cloud’s total backlog reached $514 billion by the end of Q2 2026. In English: that’s the total value of contracted but not yet delivered services sitting on Google’s books. Kurian attributed the overspend trend to differentiated products and strong market execution. T...