UBS: Forecasts 73% of Hyperscale Cloud Providers' Capital Expenditure to Flow into Storage by 2027, Amounting to $761.3 Billion

BlockBeats News, August 2, UBS stated that with the explosive demand from AI GPU manufacturers and hyperscale cloud providers, coupled with rising average selling prices of storage products, storage expenditure is growing rapidly. It is estimated that by 2027, the total capital expenditure of the world's top 11 hyperscale cloud providers will reach $1.0403 trillion, with storage expenditure accounting for $761.3 billion, representing a 73% share. Hyperscale cloud providers' total capital expenditure is expected 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 expenditure will rise from $72.8 billion to $335.7 billion and $761.3 billion, with year-on-year growth rates of 361% and 127% in 2026 and 2027, respectively. By product category, HBM expenditure is projected to grow from $24 billion in 2025 to $144.4 billion in 2027, with the blended average selling price increasing from $1.52 per Gb to $2.77 per Gb. DDR expenditure is expected 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 expenditure is forecasted 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 pointed out that to meet the growth in expenditure and demand, storage manufacturers must expand production capacity. However, wafer fab space, equipment delivery cycles, and labor constraints remain significant bottlenecks.