Global data center capex will grow 11% by 2027 to reach $400 billion, according to a new report from Dell’Oro Group. Hybrid cloud will drive the need for increased capex in both the hyperscale and enterprise markets, the market research firm predicts in the January 2023 Data Center IT Capex 5-Year Forecast Report.
“While the cloud hyperscalers will account for half the data center infrastructure spending by 2027, significant opportunities exist on-premises,” said Baron Fung, research director at Dell’Oro. “Enterprises will continuously optimize their IT deployments, balancing workloads in the multi-cloud with those on-premises. New applications will also demand infrastructure at the edge, leading to the emergence of a new ecosystem. Furthermore, upcoming advances in new server architectures, accelerated computing, and sustainability will enable greater efficiencies in the data centers of the future.”
Fung and Dell’Oro note that macroeconomic factors might dampen capex in the near term. However, forthcoming data center architectures will create growth long term. Dell’Oro predicts edge computing will compose 8% of all data center infrastructure spending by 2027.
Dell’Oro’s Data Center IT Capex 5-Year Forecast Report provides an overview of the market with historical data from 2014 to the present. The forecasts cover market and technology trends and include tables covering data center and server capex and server unit shipments forecasts for Top 4 US Cloud, Top 3 China Cloud, Top 3 Tier 2 Cloud, Rest-of-Cloud, Telco, and Enterprise customer segments. The report also breaks out markets for data center infrastructure equipment, along with server, storage system, and other data center equipment revenues sub-segments.
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.