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Data centre capex grew at the fastest rate year-over-year in three years in 1Q 2022, driven by new cloud deployments and higher data infrastructure costs, according to Dell’Oro Group.
“Data centre capex grew double-digits year-over-year in 1Q 2022 despite persistent supply chain constraints,” comments Dell’Oro Group research director Baron Fung.
“However, growth was attributed to higher data centre equipment average selling prices as vendors passed supply chain costs to end-users, and from the adoption of new server architectures and accelerated computing. We anticipate further upside in data centre capex later this year, as the top four cloud service providers expand their services and as server memory prices trend higher,” explains Fung.
The 1Q 2022 Data Centre IT Capex Quarterly Report highlighted the following findings:
1. Worldwide data centre capex growth expected to trend higher through 2022.
2. Persistent supply chain challenges to limit server unit growth to high single-digits in 2022.
3. The top 4 US cloud service providers scheduled to launch services in more than 30 new regions in 2022.
This first appeared in the subscription newsletter CommsWire on 17 June 2022.
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