Global datacentre capex grew 15% to $241bn in 2022, according to Dell’Oro Group

REDWOOD CITY, California – According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and datacentre industries, global datacentre capex grew 15 percent to $241 billion in 2022. However, we project cloud and enterprise datacentre 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 scrutinise 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 service providers comprised 48 percent of global datacentre 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 datacentre investments.

About the Report

Dell’Oro Group’s Data Center IT Capex Quarterly Report details the datacentre 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 datacentre infrastructure capex for servers, storage systems, and other auxiliary datacentre 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].