UBS said spending on storage is rising quickly as demand from AI GPU vendors and hyperscale cloud providers accelerates and average selling prices for storage products move higher. The bank estimates that the world’s top 11 hyperscale cloud service providers will spend a combined $1.0403 trillion in capital expenditures in 2027, with $761.3 billion of that going to storage, lifting storage’s share to 73%.
UBS also outlined a steep climb in overall capex and storage spending over the next two years. Total capex is projected to rise from $504 billion in 2025 to $873.9 billion in 2026 and then to $1.0403 trillion in 2027. Over the same period, storage spending is expected to jump from $72.8 billion to $335.7 billion and then to $761.3 billion, with year-over-year growth of 361% in 2026 and 127% in 2027.
By product, UBS expects HBM, DDR and NAND spending all to increase sharply, while average prices per Gb or GB also move up. The bank added that storage makers will need to expand capacity to meet demand, though fab space, equipment delivery times and labor constraints remain major bottlenecks.
UBS said on Aug. 2 that storage spending is climbing fast as demand from AI GPU vendors and hyperscale cloud service providers surges, while average selling prices for storage products also rise.
Storage to absorb a larger share of hyperscaler capex
The bank projects that the top 11 hyperscale cloud service providers worldwide will post total capital expenditures of $1.0403 trillion in 2027. Of that amount, $761.3 billion is expected to go to storage, taking storage’s share to 73%.
UBS said total hyperscaler capex is set to increase from $504 billion in 2025 to $873.9 billion in 2026, before reaching $1.0403 trillion in 2027. Storage spending over the same period is forecast to rise from $72.8 billion to $335.7 billion and then to $761.3 billion. The bank put the year-over-year growth rates for storage spending at 361% in 2026 and 127% in 2027.
HBM, DDR and NAND all seen rising
By segment, UBS expects HBM spending to increase from $24 billion in 2025 to $144.4 billion in 2027, with blended average selling prices rising from $1.52 per Gb to $2.77 per Gb.
DDR spending is projected to grow from $30.2 billion to $448.9 billion, while average selling prices rise from $0.43 per Gb to $2.30 per Gb.
NAND spending is expected to increase from $18.7 billion to $168.1 billion, with average selling prices moving from $0.07 per GB to $0.27 per GB.
Capacity expansion still faces constraints
UBS said storage manufacturers will need to expand capacity to keep up with spending and demand growth. It added that fab space, equipment delivery lead times and labor load remain notable bottlenecks.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
