Cloud Datacentre Capex Rebounded in Q3

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According to a recent Dell’Oro Group report, cloud datacentre capex rebounded to double-digit growth in Q3 2019, with higher spending on new datacentre facilities construction driving the growth.

“Cloud datacentre capex for the Top 10 cloud service providers returned to growth after two straight quarters of year-over-year (YoY) 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 datacentres scheduled to launch next year.”

Additional highlights from the report:

  • The Top 10 Cloud service providers spent US$17.9 billion, in aggregate, on datacentres, a 14% YoY increase;
  • Amazon and IBM were the only two Cloud service providers among the Top 10 that grew their server capex to expand server capacity; and
  • The Top 10 are expected to launch datacentres in nearly 40 new regions in 2020.