Spending Hyperscale Cloud Providers to Surge 30% in 2022, Says Dell’Oro Group

Data center investment for hyperscale cloud service providers is expected to increase by 30% in 2022, according to a recent analysis from Dell’Oro Group, a source for industry information on the telecommunications, networks, and data center IT industries. Dell’Oro Group also expects supply chain restrictions to begin to ease next year, providing a tailwind for both the cloud and enterprise industries.

Photo Baron Fung, Research Director at Dell’Oro Group
“The Top 10 cloud service providers are planning to launch new data centers in more than 30 regions next year and will increase their investments on new server architectures and network upgrades,” said Baron Fung, Research Director at Dell’Oro Group.

The market analysis is included in Dell’Oro Group’s ‘Data Center Capex Quarterly Report.’ This report includes detailed information about the data center infrastructure capital expenditures of each of the 10 major cloud service providers, as well as the Rest-of-Cloud, Telco, and Enterprise client segments.

“We predict the major cloud service providers to enter an expansion cycle in 2022,” said Baron Fung, Research Director at Dell’Oro Group. “The Top 10 cloud service providers are planning to launch new data centers in more than 30 regions next year and will increase their investments on new server architectures and network upgrades. The cloud service providers will also increase spending on AI infrastructure, enabling enterprises to deploy applications with enhanced intelligence and automation, and lay the foundation for the metaverse.”

Hyperscale Market Trends

Dell’Oro Group’s Data Center Capex Quarterly Report also details the allocation of the data center infrastructure capex for servers, storage systems, and other auxiliary data center equipment. Next to that, the report discusses market trends, drivers of the leading cloud service providers’ capex growth during the quarter, and the outlook for the next year.

Additional highlights from Dell’Oro Group’s 3Q 2021 Data Center Capex Quarterly Report include:

  • Global data center capex forecast to grow 17% in 2022
  • As supply limitations ease, server unit shipments are expected to return to double-digit growth next year
  • In 2022, each of the Top 4 cloud service providers – AWS, Google Cloud, Meta, and Microsoft Azure – is expected to spend more than $20 billion on data centers