Cloud Data Center Capex Forecasted for Double-Digit Growth Next Year

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Update time : 2019-10-21 11:34:00
“As we had forecasted, some of the major Cloud service providers are reducing their data center capex in 2019 as they continue to consume excess server capacity,” said Baron Fung, Director at Dell’Oro Group.  “However, we anticipate that the top 10 Cloud service providers will bring more than 40 new regions on line over the next 12 months. Spending on new servers and networking equipment are expected to ramp and drive Cloud data center capex to higher growth in 2020,” explained Fung.

Following are additional highlights from the 2Q 2019 Cloud Data Center Capex Quarterly Report:

The Top 10 Cloud service providers spent $15.5 billion in aggregate on data centers.
The Top 4 U.S.-based Cloud service providers–Amazon, Facebook, Google, and MCSF–had an 80 percent share of the data center capex of the Top 10 Cloud SPs.
Amazon leads all Cloud service providers with the most regions in operation, followed by Google and MCSF.