According to the latest report from market research firm Dell'Oro Group, the capital expenditure of Hyperscale Cloud data center is expected to increase by 20% in 2021. However, Dell'Oro expects that the recovery of enterprise IT spending will be uneven, mainly because SMEs are in a downturn in the market.
"We expect that the overall data center's capital expenditure will resume strong single-digit percentage growth in 2021 as the unfavorable factors related to the epidemic are alleviated. IT is expected that major technical fields such as IT, network and physical infrastructure will achieve growth and benefit the whole ecosystem. " Baron Fung, research director of Dell'Oro Group, said. "It is expected that the growth of Top 10 or hyperscale cloud service providers will exceed other market segments, and their expenditures will be driven by the deployment of servers based on Intel Ice Lake processors, the deployment of next generation networks and the continuous expansion of new data center construction." He explained.
Other highlights of this quarterly data center capital expenditure report for the fourth quarter of 2020 include:
• In 2020, the capital expenditure of global data centers will be USD 187 billion, which is the same as the previous year.
• Due to the digestion of cloud services and the weakness of enterprise market, global server shipments decreased by 4% in the fourth quarter of 2020.
Capital expenditure of enterprise data centers is expected to increase by 6% in 2021.
