# Cloud Capex Forecast Predicts 29% Jump in 2027 Morgan Stanley anticipates a significant surge in global cloud investments. - **Source:** [Breaking News on Seeking Alpha](https://brifing.si/source/9a596115-e1cc-45e7-b5ba-070be9ea2998) - **Published:** 2026-08-08 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/82ef7bba-b71f-43e7-8a21-9d81948796f1 ## Significant Increase in Cloud Investments Expected According to Morgan Stanley's Global Cloud Capex Tracker, capital expenditures by the world's largest hyperscalers are expected to increase by 29% in 2027. This surge is driven by computing demand exceeding current capacity. The demand for cloud services is rapidly growing, particularly with the rise of AI and big data applications. ## 2027 Forecast: $1.2 Trillion Morgan Stanley predicts that cloud investments will reach $1.2 trillion by 2027. This figure highlights the rapid growth in the sector. Investments in cloud infrastructure are primarily driven by tech giants. These investments are laying the foundation for future digital transformation. ## Computing Demand Strains Capacity Computing demand is exceeding current cloud capacity, prompting increased investments. AI and machine learning applications are particularly driving the need for cloud infrastructure. This situation requires cloud providers to expand their capacities. Morgan Stanley expects this demand to grow even further in the coming years. ## Role of Tech Giants Tech giants like Amazon, Microsoft, and Google are leading the charge in cloud investments. These companies are expanding their cloud infrastructure to offer services on a global scale. Cloud services constitute a significant portion of their revenues. Investments are a key part of their future growth strategies. ## Impact of AI and Big Data AI and big data applications are increasing the demand for cloud services. These technologies require cloud infrastructure to process and store vast amounts of data. Cloud providers are expanding their capacities to meet this demand. Morgan Stanley predicts this trend will strengthen in the coming years. ## Future of Cloud Infrastructure Cloud infrastructure is the foundation of future digital transformation. Cloud services enable businesses to become more flexible and scalable. Investments in cloud infrastructure are accelerating this transformation. Morgan Stanley emphasizes that cloud infrastructure will become even more critical in the future. ## Impact on the Global Economy Cloud investments have a significant impact on the global economy. Cloud services enhance business efficiency while creating new job opportunities. Investments in cloud infrastructure support economic growth. Morgan Stanley predicts that the contribution of cloud investments to the global economy will continue to grow. ## Conclusions and Predictions Morgan Stanley's report indicates that cloud investments will grow rapidly in the coming years. The primary driver of this growth is computing demand exceeding capacity. Cloud infrastructure is the foundation of future digital transformation. These investments will have a significant impact on the global economy. ## Sources covering this story - https://seekingalpha.com/news/4629570-cloud-capex-forecast-calls-for-29-jump-in-2027-as-compute-demand-exceeds-capacity-ms?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._