Hyperscalers propel data centre CAPEX to new heights

According to a recently published report from Dell’Oro Group, 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.

Expands Italy’s largest data centre campus by 17MW and erects Aruba Auditorium, a new high-tech events space.
Nutanix sponsored report examines potential impact of datacentre models on energy efficiency and carbon footprint.
Beyond scientific and industrial workflows, NVIDIA Omniverse lets the designers, builders and operators of the world’s most complex facilities benefit from the power of virtual worlds.
Under the theme "Fairness, Trust, Growth, and Win-Win", Huawei Data Center Facility Global Ecosystem Policy and Product Launch Event was held on November 11 at Huawei's Sanyapo Park in China. During the event, new partner policies and product innovations, including FusionModule2000 6.0, a small/medium-sized modular data center solution, and Small SmartLi UPS, were introduced to partners from across the world. This event demonstrated Huawei's commitment to building a fair and strong partner ecosystem based on mutual trust for shared success.
African commercial hosting capacity expected to triple over the next five years, to support explosive data traffic flows and accelerated adoption of cloud services.
Managing consumption and carbon footprint driving trends toward regulation, standardisation, and the search for generator alternatives.
Turnkey solution & ruggedised for fast and simplified deployment in wide range of environments.
Temporary utilities specialist Aggreko has opened a new depot in Stockholm in an effort to provide continued support to the growing Nordic data centre market.