Data Center Capex Grew at the Fastest Rate in Three Years in 1Q 2022, According to Dell'Oro Group

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Jun 16, 2022, 08:00 ET

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REDWOOD CITY, Calif., June 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 IT industries, data center capex grew at the fastest rate year-over-year in three years in 1Q 2022. New cloud deployments and higher data center infrastructure costs drove capex.

"Data center capex grew double-digits year-over-year in 1Q 2022 despite persistent supply chain constraints," said Baron Fung, Research Director at Dell'Oro Group. "However, growth was attributed to higher data center equipment average selling prices as vendors passed supply chain costs to end-users, and from the adoption of new server architectures and accelerated computing. We anticipate further upside in data center capex later this year, as the Top 4 cloud service providers expand their services and as server memory prices trend higher," explained Fung.

Additional highlights from the 1Q 2022 Data Center IT Capex Quarterly Report:

Worldwide data center capex growth expected to trend higher through 2022.
Persistent supply chain challenges to limit server unit growth to high single-digits in 2022.
The Top 4 US cloud service providers scheduled to launch services in more than 30 new regions in 2022.

About the Report

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 [email protected].

About Dell'Oro Group

Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, enterprise networks, 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.

SOURCE Dell'Oro Group