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Hyperscale cloud service providers spending to surge 30% in 2022

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, data center spending for the hyperscale cloud service providers is forecast to surge by 30 percent in 2022. We also anticipate the supply chain constraints to start easing next year, resulting in tailwind growth for both the Cloud and the Enterprise markets.

“We predict the major Cloud service providers to enter an expansion cycle in 2022,” said Baron Fung, Research Director at Dell’Oro Group. “The Top 10 Cloud service providers are planning to launch new data centers in more than 30 regions next year and will increase their investments on new server architectures and network upgrades. The Cloud service providers will also increase spending on AI infrastructure, enabling enterprises to deploy applications with enhanced intelligence and automation, and lay the foundation for the metaverse,” explained Fung.

Additional highlights from the 3Q 2021 Data Center Capex Quarterly Report:

  • Worldwide data center capex forecast to grow 17 percent in 2022.
  • Server unit shipments are forecast to return to double-digit growth next year, as supply constraints ease.
  • Data center capex for each of the Top 4 Cloud service providers—Amazon, Google, Meta, and Microsoft—projected to surpass $20 billion in 2022.

CT Bureau


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