Data center Capex is forecast to reach $400 billion by 2027 and the cloud hyperscalers will account for half the data center infrastructure spending, Dell’Oro Group said in its report.
The report said hybrid cloud will generate data center market growth opportunities for both hyperscale and enterprise markets.
“Enterprises will optimize their IT deployments, balancing workloads in the multi-cloud with those on-premises. New applications will also demand infrastructure at the edge leading to the emergence of a new ecosystem,” said Baron Fung, Research Director at Dell’Oro Group.
Worldwide data center Capex is forecast to grow 11 percent by 2027. Edge computing is forecast to comprise 8 percent of total data center infrastructure spending by 2027. Macroeconomic factors may hinder near-term data center investments, though forthcoming data center architectures will stimulate long-term growth.
