Morgan Stanley forecasts global cloud capex will surge to $1.2 trillion in 2027, up 30% from prior estimate, adding $170B to forecasts. Hyperscalers (Alphabet, Amazon, Meta) raising 2026 capex guidance while Microsoft holds steady, driven by persistent capacity constraints as AI demand continues exceeding supply.

Morgan Stanley forecasts global cloud capex will surge to $1.2 trillion in 2027, up 30% from prior estimate, adding $170B to forecasts. Hyperscalers (Alphabet, Amazon, Meta) raising 2026 capex guidance while Microsoft holds steady, driven by persistent capacity constraints as AI demand continues exceeding supply.

Signals sustained mega-scale infrastructure build despite market volatility; confirms capacity bottlenecks persist even as capex accelerates.