Cloud Storage Capex Share Surges 73% to $761.3B in 2027

UBS projects hyperscale cloud storage spending to hit $761.3B by 2027, capturing 73% of total capex. HBM and DDR price hikes drive growth despite manufacturing bottlenecks.

Woofun AI data shows that UBS forecasts total capital expenditure for the top 11 global hyperscale cloud providers to reach $10.403 trillion by 2027. Within this total, storage spending is projected to amount to $761.3 billion, representing a 73% share of the aggregate expenditure. This marks a significant increase from $72.8 billion in 2025, with year-over-year growth rates of 361% in 2026 and 127% in 2027.

Product-level analysis indicates HBM spending will rise from $24 billion in 2025 to $144.4 billion in 2027, driven by an average selling price increase from $1.52 to $2.77 per Gb. DDR spending is expected to climb from $30.2 billion to $448.9 billion, while NAND spending will grow from $18.7 billion to $168.1 billion. UBS notes that meeting this demand requires capacity expansion, though wafer fab space, equipment lead times, and workforce constraints remain significant bottlenecks.