Dell’Oro predicts global data center capex to reach $377 billion by 2026

Aug. 11, 2022

According to the report, Data Center IT Capex 5-Year Forecast Report, increased adoption of accelerated computing will generate market growth opportunities.

Lightwave Staff

A recent report published by Dell’Oro Group indicates that global data centers will reach $377 billion in capital expenditures by 2026, with hyperscale cloud service providers accounting for more than half of the market value. According to the new Data Center IT Capex 5-Year Forecast Report, increased adoption of accelerated computing will generate market growth opportunities.

“The data center of the future will continue to evolve, with new accelerated computing architectures on the horizon enabling AI applications that are more automated, intelligent, and immersive for end users,” says Baron Fung, research director at Dell’Oro Group. The hyperscale service providers will lead the market in investing in new accelerated computing technologies, with an emphasis on the cutting-edge server and network architectures, as well as enhanced thermal management solutions.”

Fung also cautions that there is uncertainty in the near term of the overall market, with lingering supply chain challenges, persistent inflationary pressures, and declining economic growth – all of which could weigh down on enterprise data center spending in the near term.

“Despite these near-term uncertainties, our long-term outlook appears optimistic,” adds Fung, “as enterprises undergo digital transformation initiatives, deploying new hybrid cloud workloads; and with the cloud service providers and telecom operators extending their infrastructure to the network edge.”

The report also forecasts the adoption of new server CPU platforms and accelerated computing that will become primary capex growth drivers in the data center. Additionally, edge computing is forecast to comprise 8% of total data center infrastructure spending by 2026.

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