Global Data Center Capex Grew 15 Percent to $241 Billion in 2022, According to Dell'Oro Group

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Mar 16, 2023, 08:00 ET

Cloud and Enterprise Spending to Decelerate to Single-Digit Growth in 2023

REDWOOD CITY, Calif., March 16, 2023 /PRNewswire/ -- According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, global data center capex grew 15 percent to $241 billion in 2022. However, we project cloud and enterprise data center spending to decelerate to single-digit growth in 2023.

"The hyperscale cloud service providers have undergone a robust expansion cycle for three straight years while navigating through a supply constraint environment," said Baron Fung, Senior Research Director at Dell'Oro Group. "Enterprises also increased their IT spending from digital transformation initiatives. However, the market is due for a pullback as the hyperscalers are at the end of their expansion cycle and seek to improve efficiencies, and the enterprises will scrutinize expenditures more carefully in an uncertain economic environment. Thus, shifting from a supply-constrained environment to one that is oversupplied as demand softens in certain sectors," explained Fung.

Additional highlights from the 4Q 2022 Data Center IT Capex Quarterly Report:

The Top 10 Cloud SPs comprised 48 percent of global data center capex in 2022.
The leading server vendors by revenue in 2022 were Dell, followed by HPE and Inspur.
Upcoming server architectural changes and accelerated computing will contribute to long-term data center investments.

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, security, enterprise networks, and data center infrastructure 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