Cloud Data Center Capex Rebounded to Double Digit Growth in 3Q 2019

“Cloud data center capex for the Top 10 cloud service providers returned to growth after two straight quarters of year-over-year declines,” said Baron Fung, Director at Dell’Oro Group. “We project that spending on servers will increase in 2020, as the major Cloud service providers revert to server capacity expansion and fill new data centers scheduled to launch next year,” explained Fung.

Following are additional highlights from the 3Q 2019 Cloud Data Center Capex Quarterly Report:

The Top 10 Cloud service providers spent $17.9 billion, in aggregate, on data centers, a 14 percent year-over-year increase.
Amazon and IBM were the only two Cloud service providers among the Top 10 that grew their server capex to expand server capacity.
The Top 10 are expected to launch data centers in nearly 40 new regions in 2020.