What’s a $88 Billion CAPEX Investment Between Data Center BFFs Anyway?

Could emerging technologies, such as edge computing, be driving the growth of the Telco Data Center segment? Maybe just a bit. Dell’Oro Group says Data Center CAPEX grew at the fastest rate in three years in 1Q 2022.

The top 10 largest Cloud service providers collectively spent over $88 billion on data center infrastructure in 2021 and CAPEX for equipment such as servers and storage systems. Spending will continue as these data center needs increase. In fact, Amazon, Google, Meta and Microsoft are projected to increase their CAPEX spend 28% in 2022.

The report includes detailed capital spending of each of the largest Cloud service providers on data centers infrastructure, with specific emphasis on IT equipment such as servers and storage systems. In addition to capital spending, the report includes information on the number of regions and availability zones for each Cloud service provider, as well as the number of installed servers.

Additional highlights from the 1Q 2022 Data Center IT CAPEX Quarterly Report include:

• Worldwide data center CAPEX growth expected to trend higher through 2022.
• Persistent supply chain challenges to limit server unit growth to high single-digits in 2022.
• The Top 4 US cloud service providers scheduled to launch services in more than 30 new regions in 2022.

Source: https://www.delloro.com/market-research/data-center-infrastructure/data-center-capex/