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US Hyperscalers Propelled Data Center Capex to New Heights in 2Q 2022, According to Dell'Oro Group
Friday, September 23, 2022

Demand Pullback Anticipated in Other Markets

REDWOOD CITY, Calif., Sept. 16, 2022 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, the US cloud hyperscalers--Amazon, Google, Meta, and Microsoft--increased data center capex by 45 percent in 2Q 2022, propelling global data center capex to new heights. However, demand pullback is anticipated among certain Chinese and Tier 3 US cloud service providers and select enterprise verticals.

"Data center capex attained the highest growth in more than three years, driven by ongoing footprint expansion and adoption of accelerated computing by the US hyperscalers," said Baron Fung, Research Director at Dell'Oro Group. "However, growth in other markets was mixed, as some enterprise customers are delaying their data center 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:

    --  Backlog and higher equipment pricing are projected to drive data center
        capex in the second half of 2022.
    --  The Top 4 US cloud service providers are scheduled to launch services in
        more than 30 new regions in 2022.
    --  Data center capex growth is expected to moderate in all segments in
        2023.

Dell'Oro Group's Data Center IT Capex Quarterly Report details the data center infrastructure capital expenditures of each of the ten largest Cloud service providers, as well as the Rest-of-Cloud, Telco, and Enterprise customer segments. Allocation of the data center infrastructure capex for servers, storage systems, and other auxiliary data center equipment is provided. The report also discusses market trends, drivers of the leading Cloud service providers' capex growth during the quarter, and the outlook for the next year. To purchase this report, please contact us at dgsales@delloro.com.

Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, enterprise network, data center infrastructure, and network security markets.Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

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SOURCE Dell'Oro Group



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