Sami Badri Explains Growth of Hypercale CapEx Spending at CAPRE’s NYC Data Center Summit

CAPRE’s 7th Annual Greater New York Data Center Summit was held on April 5, 2018 at Westin New York at Times Square. Above: Sami Badri, Senior Analyst, Credit Suisse presents the keynote address: Cloud Enablers Boosting Enterprise Colocation Growth.

NEW YORK, NY — According to Sam Badri, experts have significantly underestimated data center capex spending. But once you pop the hood, this massive influx of capital makes a lot of sense. Badri is a Senior Analyst for Credit Suisse, and a frequent contributor at CapRE Data Center Summits. At CAPRE’s 2019 New York Data Center and Cloud Infrastructure Summit, Badri had a lot to say about capex – where the industry is, how it got here, and why. “Today we’re talking about the hyperscale capex trajectory. The most interesting thing about this metric is how we’ve been able to track and measure over time, and specifically, underappreciate it how it would grow,” began Badri, providing a lay of the land. “So we’re going to go over some of the reasons for that.” Badri’s coverage model is a little bit different. “Most analysts cover real estate and telecom. I cover real estate, telecom, network equipment, and the entire technology supply chain, including the semiconductor chips that go into all of the equipment,” he explained. “We do a little bit differently to get some of these incremental value adds that not a lot of people are seeing on the surface.” “So, this is the chart of the day,” he indicated, referring to the graphic above. “This is hyperscale capex growth. Hyperscale capex spend grew 48% year over year in 2018. This was a very dramatic bump, versus any period in history.…