Market research firm Dell'Oro Group forecasts that global data center capex is on track to reach $400 billion by 2027.

Even though hyperscalers will lead that growth, Dell'Oro said that hybrid cloud will generate data center market growth opportunities for both the hyperscale and enterprise markets.

"While the cloud hyperscalers will account for half the data center infrastructure spending by 2027, significant opportunities exist on-premises," said Baron Fung, research director at Dell'Oro Group.

"Enterprises will continuously optimize their IT deployments, balancing workloads in the multi-cloud with those on-premises. New applications will also demand infrastructure at the Edge leading to the emergence of a new ecosystem. Furthermore, upcoming advances in new server architectures, accelerated computing, and sustainability will enable greater efficiencies in the data centers of the future."

The report also forecasts a worldwide data center capex growth of 11 percent by 2027.

Earlier this month, rival analyst house Synergy Research Group found that hyperscalers, enterprises, and telecoms companies spent $700 billion on IT in 2022.

Hyperscale companies accounted for 29 percent of the total - the same as enterprises. Telco companies accounted for the remaining 42 percent in 2022.

Over the last six years, hyperscale capex has grown by an average of 20 percent per year, while enterprise IT spending has grown by an average of six percent, and telco capex has been flat. Overall, spending has increased by an average six percent per year since 2016, Synergy said.