Hyperscale operator Capex targeted at data centers increased 11% in 2019

Hyperscale operator Capex in the fourth quarter touched $32 billion, data from Synergy Research Group shows.
Hyperscale operator investment in datacentersHyperscale operator Capex rose just 1 percent in 2019. Hyperscale operator Capex targeted at data centers increased 11 percent in 2019, reflecting ongoing strength in their core business operations.

The top five hyperscale spenders in 2019 were Amazon, Google, Microsoft, Facebook and Apple.

Hyperscale operator Capex growth at Amazon, Microsoft and Facebook was strong. Apple’s Capex dropped sharply. The other leading hyperscale spenders include Alibaba, Tencent, IBM, JD.com, Baidu and Oracle.

“As expected there was a significant boost in hyperscale operator Capex in the second half of 2019, which helped to counter a relatively soft start to the year. Most notable was that annual spending on data centers grew at a double-digit rate despite total Capex being somewhat flat,” said John Dinsdale, chief analyst at Synergy Research Group.

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