Hyperscalers propel data centre CAPEX to new heights

“Data center capex attained the highest growth in more than three years, driven by ongoing footprint expansion and adoption of accelerated computing by the US hyperscalers,” said Baron Fung, Research Director at Dell’Oro Group. “However, growth in other markets was mixed, as some enterprise customers are delaying their data center purchases due to mounting economic uncertainties, while others continue to contend with persistent supply challenges. Nevertheless, double-digit growth in server average selling prices from the transition to new server architectures and higher supply chain costs fueled topline growth for the quarter,” explained Fung.

Additional highlights from the 2Q 2022 Data Center IT Capex Quarterly Report:

Backlog and higher equipment pricing are projected to drive data center capex in the second half of 2022.

The Top 4 US cloud service providers are scheduled to launch services in more than 30 new regions in 2022.

Data center capex growth is expected to moderate in all segments in 2023.