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New Data Center Facility Construction Drove the Growth

REDWOOD CITY, Calif. – December 17, 2019 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, Cloud data center capex rebounded to double-digit growth in 3Q 2019. Higher spending on new data center facilities construction drove the growth.

“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.

About the Report

Dell’Oro Group’s Cloud Data Center Capex Quarterly Report details the capital spending of each of the ten largest Cloud service providers. Data is provided on facilities and servers by geographic region and availability zone as well as on the number of installed servers. 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 dgsales@delloro.com.

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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