Capex of hyperscale operators drops 2% to $28 bn in Q2

Capex of hyperscale operators dropped 2 percent to $28 billion in the second quarter of 2019, according to Synergy Research Group.
Capex of hyperscale operators Q2 2019China-based hyperscale operators such as Alibaba, Tencent, JD.com and Baidu all reduced their Capex spending substantially, leading to a 37 percent year-on-year reduction in Chinese hyperscale Capex.

Hyperscale Capex in the United States rose 5 percent year on year, while in EMEA, APAC excluding China and the rest of the world, Capex growth was in the 2 to 3 percent range, the report said.

The top five hyperscale spenders in Q2 were Google, Amazon, Microsoft, Facebook and Apple. Hyperscale capex of Google, Amazon, Microsoft, Facebook and Apple increased 7 percent.

Outside of the top five, other leading hyperscale spenders include Alibaba, Tencent, IBM, JD.com, Baidu and Oracle.

Much of the hyperscale Capex goes towards building, expanding and equipping huge data centers, which have now grown in number to almost 470.

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