Morgan Stanley: Top Five Cloud Firms' CapEx to Reach $1.2 Trillion Next Year

On July 14, Morgan Stanley released a latest research report, raising its capital expenditure forecasts for five hyperscale cloud providers—Meta, Amazon, Microsoft, Google-C, and SpaceX—for 2027/2028 by 9%/10% respectively, to approximately $1.2 trillion and $1.4 trillion. The main drivers for the upward revision include a roughly 20% increase in GPU costs, a lengthening of data center construction cycles to three years, and computing power expected to grow from about 30 GW in 2025 to around 120 GW in 2028. Meanwhile, the potential revenue space for Meta, Amazon, and others is far from being priced in by the market.