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Data from a market research company: lower the growth rate of global data center capital expenditure in 2023 to 5%
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Author : JIUZHOU
Update time : 2023-06-21 14:05:26
Data from a market research company: lower the growth rate of global data center capital expenditure in 2023 to 5%
In the first quarter of 2023, the year-on-year growth rate of global data center capital spending slowed to 8%.
The enterprise IT market is softening, while some hyperscalers are entering a capex digestion cycle. A market research firm lowered its hyperscale capex forecast to 5% in 2023.
According to a recent report released by a market research company, in the first quarter of 2023 (Q123), the year-on-year growth rate of global data center capital expenditures slowed down to 8%. The enterprise IT market has softened, and some hyperscalers have entered a capital expenditure digestion cycle.
"While data center capital expenditures by hyperscalers will drop sharply this year, we expect spending by some cloud service providers, such as Microsoft and Google, to continue to grow at double-digit rates," said a senior research director at a market research firm. Meanwhile, enterprise IT spending got off to a slow start at the start of the year, with server and storage OEMs reporting year-over-year revenue declines. We expect demand to continue to deteriorate throughout the first half of 2023. The lower demand environment will have an impact on slower system price growth, which may prompt a wait-and-see of customers resume spending later in the year. Additionally, recent refreshes of server platforms from Intel and AMD, as well as growing demand from artificial intelligence/machine learning (AI/ML) applications, are expected to incentivize customers to upgrade their infrastructure."
Other highlights from a market research firm's quarterly report:
1. It is expected that in 2023, the revenue growth rate of servers and storage systems will drop to 3%, while the revenue of network and physical infrastructure will maintain double-digit growth.
2. Q123 server OEMs' server shipments fell 20% year-on-year, while white box server suppliers' shipments increased by more than 20%.
3. In 2023, the four major cloud service providers in the United States are expected to launch services in 14 new regions (Regions), which is significantly reduced compared with the 28 regions launched in 2022.
In a quarterly report released in March this year, a market research company stated that in 2022, global data center capital expenditures will increase by 15%, reaching US$241 billion. The research firm expects cloud and enterprise data center spending growth to decelerate to single digits in 2023.
A director of a market research company said in a report released in March that ultra-large-scale cloud service providers have experienced a strong expansion cycle for three consecutive years, and this year has reached the end of the expansion cycle, so the market will undergo a correction; Businesses will scrutinize spending more carefully in an economic environment that is more sluggish. As a result, demand in certain sectors will soften, and a supply-constrained environment will turn into one of excess supply.
In the first quarter of 2023, the year-on-year growth rate of global data center capital spending slowed to 8%.
The enterprise IT market is softening, while some hyperscalers are entering a capex digestion cycle. A market research firm lowered its hyperscale capex forecast to 5% in 2023.
According to a recent report released by a market research company, in the first quarter of 2023 (Q123), the year-on-year growth rate of global data center capital expenditures slowed down to 8%. The enterprise IT market has softened, and some hyperscalers have entered a capital expenditure digestion cycle.
"While data center capital expenditures by hyperscalers will drop sharply this year, we expect spending by some cloud service providers, such as Microsoft and Google, to continue to grow at double-digit rates," said a senior research director at a market research firm. Meanwhile, enterprise IT spending got off to a slow start at the start of the year, with server and storage OEMs reporting year-over-year revenue declines. We expect demand to continue to deteriorate throughout the first half of 2023. The lower demand environment will have an impact on slower system price growth, which may prompt a wait-and-see of customers resume spending later in the year. Additionally, recent refreshes of server platforms from Intel and AMD, as well as growing demand from artificial intelligence/machine learning (AI/ML) applications, are expected to incentivize customers to upgrade their infrastructure."
Other highlights from a market research firm's quarterly report:
1. It is expected that in 2023, the revenue growth rate of servers and storage systems will drop to 3%, while the revenue of network and physical infrastructure will maintain double-digit growth.
2. Q123 server OEMs' server shipments fell 20% year-on-year, while white box server suppliers' shipments increased by more than 20%.
3. In 2023, the four major cloud service providers in the United States are expected to launch services in 14 new regions (Regions), which is significantly reduced compared with the 28 regions launched in 2022.
In a quarterly report released in March this year, a market research company stated that in 2022, global data center capital expenditures will increase by 15%, reaching US$241 billion. The research firm expects cloud and enterprise data center spending growth to decelerate to single digits in 2023.
A director of a market research company said in a report released in March that ultra-large-scale cloud service providers have experienced a strong expansion cycle for three consecutive years, and this year has reached the end of the expansion cycle, so the market will undergo a correction; Businesses will scrutinize spending more carefully in an economic environment that is more sluggish. As a result, demand in certain sectors will soften, and a supply-constrained environment will turn into one of excess supply.
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