UBS predicts that 73% of the top 11 cloud providers' 2027 capital expenditures will go to storage.

Huoxing Finance reports that on August 2, UBS stated that storage spending is growing rapidly due to surging demand from AI GPU manufacturers and hyperscale cloud providers, coupled with rising average selling prices for storage products. By 2027, the total capital expenditure of the world’s top 11 hyperscale cloud providers is expected to reach $1.0403 trillion, with storage spending accounting for $761.3 billion—rising to 73% of the total. Hyperscale cloud providers’ total capital expenditure is projected to increase from $504 billion in 2025 to $873.9 billion in 2026, and further to $1.0403 trillion in 2027. During the same period, storage spending is forecast to rise from $72.8 billion in 2025 to $335.7 billion in 2026 and $761.3 billion in 2027, representing year-over-year growth of 361% in 2026 and 127% in 2027. By product, HBM spending is expected to increase from $24 billion in 2025 to $144.4 billion in 2027, with the average selling price rising from $1.52 per Gb to $2.77 per Gb; DDR spending is projected to rise from $30.2 billion to $448.9 billion, with the average selling price increasing from $0.43 per Gb to $2.30 per Gb; NAND spending is forecast to grow from $18.7 billion to $168.1 billion, with the average selling price rising from $0.07 per GB to $0.27 per GB. UBS noted that to meet rising demand and spending, storage manufacturers must expand capacity; however, constraints such as foundry space, equipment delivery lead times, and labor capacity remain significant bottlenecks.