Morgan Stanley: The top five cloud providers’ capital expenditures will be $1.2 trillion next year.

Golden Finance reported that on July 14, Morgan Stanley released a new research report, raising its overall capital expenditure forecasts for 2027/2028 for five ultra-large-scale cloud providers—Meta, Amazon, Microsoft, Google-C, and SpaceX—by 9%/10%, reaching approximately $1.2 trillion and $1.4 trillion, respectively. The main drivers behind the higher capex forecasts include about a 20% increase in GPU costs, and the data center construction cycle extending to 3 years; compute capacity is expected to grow from about 30GW in 2025 to about 120GW in 2028, while the potential revenue upside for Meta, Amazon, and others has not yet been priced in by the market.
META0.66%
AMZN0.06%
MSFT-1.55%
GOOG1.90%
SPCX-2.20%
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