Data center capex to skyrocket amid AI infrastructure spending
Research - AUGUST 9, 2023

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Data center capex to skyrocket amid AI infrastructure spending

by Kali Persall

AI infrastructure investments are expected to lift data center capex to more than $500 billion by 2027, according to a recent report from Dell’Oro Group, a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks and data center infrastructure markets.

The July 2023 Data Center IT Capex 5-Year Forecast Report notes worldwide data center capex is forecast to grow 15 percent by 2027; however, near-term cloud and enterprise capex growth are expected to decelerate as the market undergoes digestion.

“Despite near-term data center capex growth headwinds as the major cloud service providers and enterprises optimize their infrastructure, forthcoming technology transitions will stimulate long-term growth,” said Baron Fung, senior research director at Dell’Oro Group. “Most notably, the hyperscale cloud service providers will prioritize their investments toward accelerated systems for AI ap

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