By Matt Walker
This short note provides an early review of 3Q23 market growth and capex spending figures for two of the three operator segments we cover: webscale, and carrier-neutral. (Our third segment, telco, will be addressed in a few weeks as more earnings reports are available.) The analysis is based on a review of over 80% of reporting companies in the two segments. Our official forecast for 2023 calls for $218B of capex for webscalers, and $39B for carrier-neutral operators (CNNOs). Market figures through 3Q23 suggest actual capex is likely to be closer to $200B and $36B for the two segments, respectively. This is a small change, however, and the tech portion of webscale capex is rising modestly. Moreover, new data from DigitalBridge makes clear that private equity-funded spend is strong in the data center CNNO market, helping to offset a weaker public CNNO market. Consequently, the vendor opportunity in selling to these two markets in 2023 is roughly the same size as forecast.
- Table Of Contents
- Figures and Tables
- Coverage
- Visuals
Table Of Contents
- Summary – page 1
- Introduction – page 1
- Analysis – page 2
- Webscale
- Carrier-neutral
- Generative AI
- Outlook – page 4
- Appendix – page 6
Figures and Tables
Figure 1: Capex projection for Webscale and CNNO market (US$B), per 7/23 forecast
Figure 2: YoY revenue growth rates for webscale’s big 4 providers
Figure 3: Capex for select* CNNOs in 3Q21-3Q23 (US$M)
Coverage
Organizations mentioned:
Alphabet
Amazon
American Tower
Apple
BAM Digital Realty
Blackstone
Brookfield
China Tower
Compass Data Centers
CoreSite Realty
Crown Castle
Cyxtera
Data4
DCI
Digital Realty
DigitalBridge
Equinix
Indus Towers (aka Bharti Infratel)
Level 3
Meta (FB)
Microsoft
QTS Realty
SBA Communications
Switch
Vianet
Visuals
