According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, global data center CapEx is on track to reach $350 billion by 2026. We forecast hyperscale cloud service providers to double their data center spending over the next five years, fueling the market growth.
“Our outlook for spending on data center infrastructure CapEx is optimistic, with a five-year projected growth of 10 percent,” said Baron Fung, Research Director at Dell’Oro Group. “The hyperscale cloud service providers will account for an increasing portion of the total market, as they invest to expand their network of data centers, increase cloud capacity, and deploy AI infrastructure to enable new applications such as the metaverse. We also anticipate incremental growth as data center infrastructure become more distributed, as the cloud and telecom service providers and enterprises launch new services at the edge of the network,” explained Fung.
Additional highlights from the January 2022 Data Center IT CapEx 5-Year Forecast Report:
- Worldwide data center CapEx is forecast to grow 10 percent by 2026.
- CapEx on servers is expected to outgrow other areas, driven by adoption in new server CPU platforms and accelerated computing.
- Edge computing is forecast to comprise 8 percent of total data center infrastructure spending by 2026.