The era of inference has arrived! Morgan Stanley predicts: a wave of 34 gigawatt computing power expansion is coming, benefiting NVIDIA with high GPU prosperity

Zhitong
2026.05.19 03:38

Morgan Stanley analysts predict that by 2027, hyperscale data center operators will add 34 gigawatts of computing power, primarily benefiting from investments by companies such as Google, Amazon, Meta, and Microsoft. The industry is expected to add 20 gigawatts of computing power next year, with NVIDIA benefiting from its energy efficiency advantages. Analysts point out that Amazon, Microsoft, and Meta have the largest procurement efforts, and their capital expenditures are expected to officially come online in 2027 and beyond

According to the Zhitong Finance APP, Morgan Stanley analysts stated that by 2027, major hyperscale data center operators, including Google (GOOG.US, GOOGL.US), Amazon (AMZN.US), Meta Platforms (META.US), and Microsoft (MSFT.US), are expected to add a total computing power of 34 gigawatts, as "the era of inference has arrived."

For reference, analysts pointed out that Amazon AWS, currently the largest cloud service provider, may have only added about 5 gigawatts of computing power in its first 18 years. Analysts added that the industry is expected to add 20 gigawatts of computing power next year, which could meet the electricity needs of approximately 15 million American households. With an additional 14 gigawatts expected in 2026, the total new computing power in the industry will reach 34 gigawatts.

In their research report, analysts indicated that Google will continue to lead in computing power expansion in 2027, with an expected addition of about 7 gigawatts; Amazon and Microsoft will follow closely, each adding about 5 gigawatts; Meta's capital expenditure corresponds to a computing power increase of 3.5 gigawatts, and if the total investment in its cloud infrastructure is fully accounted for, the actual new computing power may reach 4 gigawatts.

Analysts believe that a significant portion of the funding and capacity for this large-scale computing power expansion will be directed towards the GPU sector. Leveraging its energy efficiency advantages over peers, NVIDIA (NVDA.US) will fully benefit in this arena.

Analysts added that the remaining computing resources will mainly be directed towards self-developed dedicated chips (such as Google TPU, Amazon Trainium chips), power supply infrastructure, DRAM memory, and high-bandwidth memory, among other hardware construction.

Looking ahead to 2026 and 2027, analysts believe that Amazon, Microsoft, and Meta will have the largest purchasing power, as they are significantly increasing their purchases of servers, land, equipment, and memory. Analysts estimate that at least 50% of the capital expenditures of these three companies this year will correspond to capacity that will not officially come online until 2027 and beyond.

Analysts added that in contrast, only about 10% of Google's capital expenditures in 2026 will correspond to capacity that will be delayed until 2027 and beyond

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