Banking On Data Center Investment
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Let’s hope capex investment in data centers is sustained.
Figure 1: Nonresidential fixed investment (blue) GDPNow of 8/7 (light blue square), nonresidential fixed investment minus data center capex (dark red), GDPNow of 8/7 (red square), all in bn.Ch.2017$ SAAR. Annual data center capex interpolated using cubic spline. Assumes information processing equipment prices rise by 0.9% in Q3. Source: BEA, Atlanta Fed, JPMorgan, and author’s calculations.
The data center investment series is based on JP Morgan projections.
Source: JPMorgan
Should the Magnificent 7 stocks deflate, capex is likely as well.
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