Global data center CapEx to reach $400 billion by 2027

According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, global data center capex is on track to reach $400 billion by 2027. We predict hybrid cloud will generate data center market growth opportunities for both the hyperscale and enterprise markets.

“While the cloud hyperscalers will account for half the data center infrastructure spending by 2027, significant opportunities exist on-premises,” said Baron Fung, Research Director at Dell’Oro Group. “Enterprises will continuously 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. Furthermore, upcoming advances in new server architectures, accelerated computing, and sustainability will enable greater efficiencies in the data centers of the future,” explained Fung.

Additional highlights from the January 2023 Data Center IT Capex 5-Year Forecast Report:

• Worldwide data center capex is forecast to grow 11 percent by 2027.
• Macroeconomic factors may hinder near-term data center investments, although forthcoming data center architectures will stimulate long-term growth.
• Edge computing is forecast to comprise 8 percent of total data center infrastructure spending by 2027.

CT Bureau