Tuesday, 20 September 2022 08:27

Amazon, Google, Meta, and Microsoft saw increased data centre CAPEX by 45%: Dell’Oro Group

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US cloud hyperscalers—Amazon, Google, Meta, and Microsoft—increased data centre CAPEX by 45% in 2Q 2022, however, demand pullback is anticipated among certain Chinese and Tier 3 US cloud service providers and select enterprise verticals, according to market research firm Dell’Oro Group.

"Data centre capex attained the highest growth in more than three years, driven by ongoing footprint expansion and adoption of accelerated computing by the US hyperscalers," commented Dell’Oro Group research director Baron Fung.

"However, growth in other markets was mixed, as some enterprise customers are delaying their data centre 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:
1. Backlog and higher equipment pricing are projected to drive data centre capex in the second half of 2022.
2. The top 4 US cloud service providers are scheduled to launch services in more than 30 new regions in 2022.
3. Data centre capex growth is expected to moderate in all segments in 2023.

This first appeared in the subscription newsletter CommsWire on 19 September 2022.

 

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Kenn Anthony Mendoza

Kenn Anthony Mendoza is the newest member of the iTWire team. Kenn is also a contributing writer for South China Morning Post Style, and has written stories on Korean entertainment, Asian and European royalty, Millionaires and Billionaires, and LGBTQIA+ issues. He has been published in Philippine newspapers, magazines, and online sites: Tatler PhilippinesManila BulletinCNN Philippines LifePhilippine StarManila Times, and The Daily Tribune. Kenn now covers all aspects of technology news for iTWire.com.

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