Data center Capex to reach $400 bn: Dell’Oro

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.
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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.

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