The capital expenditure of the five cloud plants next year is $1.2 trillion

On 14 July, Morgan Stanley released the latest research, which resulted in an overall 9/10 per cent increase in capital expenditure projections for 2027/2028 for five super-large cloud manufacturers, Meta, Amazon, Microsoft, Google-C and SpaceX, to approximately $1.2 trillion and $1.4 trillion, respectively. The main drivers of the increase in capital expenditure include the increase in the cost of GPU by about 20 per cent, the extension of the data centre construction cycle to three years, which will increase from about 30 GW in 2025 to about 120 GW in 2028, while potential income spaces such as Meta and Amazon are far from being market-pricing。