TrendForce forecasts 2027 CSP capital expenditure to exceed $1.53 trillion

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TrendForce now forecasts 2027 CSP capital spending to reach $1.53 trillion, a 60% increase from this year’s $957 billion. Rising server costs, component shortages, and supplier demands drove the revision. AI servers will account for 81.1% of the market by 2027, valued at nearly $92 billion. Traders monitoring altcoins to watch may observe ripple effects from this growth. Movements in the Fear and Greed Index could reflect broader market sentiment as infrastructure spending accelerates.
CoinDesk reports:

IT Home, October 15: TrendForce (集邦) yesterday released new insights based on its industry research, further raising its forecast for the total capital expenditure over the past two years by the world’s nine major cloud service providers—Google, Amazon, Meta, Microsoft, Oracle, ByteDance, Tencent, Alibaba, and Baidu.

Institutions now believe that the nine major CSPs will spend a total of over $957 billion on capital expenditures this year (IT Home note: approximately RMB 6.42 trillion at current exchange rates), a 106% increase; by 2027, this figure is expected to rise a further 60% to $1.531 trillion (approximately RMB 10.27 trillion at current exchange rates).

This price increase is the result of three factors: rising costs of entire servers, shortages of components leading to higher quotations, and some upstream suppliers requiring advance payments.

Institutional estimates project that AI server shipments will increase by 32.2% this year, generating approximately $479 billion (equivalent to about RMB 3.21 trillion at current exchange rates) in revenue, accounting for 74.9% of the total server market. By 2027, AI server shipments are expected to grow nearly 36%, with revenue rising to nearly $920 billion (equivalent to about RMB 6.17 trillion at current exchange rates, representing a 92% year-over-year increase), and their market share rising to 81.1%.

Meanwhile, the overall server market value is expected to exceed $1 trillion next year (approximately RMB 6.71 trillion at current exchange rates).

Reference

TrendForce: CSP capital expenditures are projected to exceed $1.5 trillion in 2027, driven by rising volume and pricing of AI servers, boosting industry output by over 90% year-over-year.

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