ChainThink reports that on August 2, UBS estimated that the total capital expenditure of the world’s top 11 hyperscale cloud providers will reach $1.0403 trillion by 2027, with storage spending at $761.3 billion, accounting for 73%.
UBS stated that storage spending is rising rapidly due to increased demand from AI GPU manufacturers and hyperscale cloud service providers, along with higher average selling prices for storage products.
Total capital expenditures by hyperscale cloud providers are expected to increase from $504 billion in 2025 to $873.9 billion in 2026, and further rise to $1.0403 trillion in 2027.
During the same period, storage expenditures are expected to increase from $72.8 billion in 2025 to $335.7 billion in 2026 and $761.3 billion in 2027, representing year-over-year growth rates of 361% and 127% in 2026 and 2027, respectively.
By product, HBM spending is expected to increase from $24 billion to $144.4 billion, DDR spending from $30.2 billion to $448.9 billion, and NAND spending from $18.7 billion to $168.1 billion.
UBS noted that storage manufacturers need to expand capacity to meet growing spending and demand, but wafer fab space, equipment delivery timelines, and labor constraints remain key bottlenecks.