Overview:
The latest research from Counterpoint’s Cloud Service reveals that Global cloud service providers will grow capex by an estimated 7.8% YoY in 2023. Higher debt costs, enterprise spending cuts and muted cloud revenue growth are impacting infrastructure spend in data centers compared to 2022. The report covers global cloud capex spends, IT equipment spends and AI spends.
Hyperscalers are increasingly focusing on ramping up their AI infrastructure in data centers to cater to the demand for training proprietary AI models, launching native B2C generative AI user applications, and expanding AIaaS (Artificial Intelligence-as-a-Service) product offerings.
Microsoft and Amazon are among the highest spenders as they invest in data center development. Microsoft will spend over 13% of its capex on AI infrastructure. AI infrastructure can be 10x-30x more expensive than traditional general-purpose data center IT infrastructure. Chinese hyperscalers’ capex is decreasing due to their inability to access NVIDIA’s GPU chips, and decreasing cloud revenues. The companies covered are – Alibaba, Amazon, Baidu, Google, IBM, Meta, Microsoft, Oracle and Tencent.
Table of Contents:
- Definitions
- Total Capex Spends
- Total IT Equipment Spends
- Total AI Spends
- Contacts
Number of Pages:
Published Date: July, 2023