With the ongoing boom in AI, the layout of infrastructure-supported Datacenters has become a major trend.

Since last year, technology giants have been quickly establishing AI Datacenter footholds. With the arrival of the new year, these giants have increased their investments.

Microsoft announced that it will spend 80 billion dollars on AI Datacenters in fiscal year 2025 to build Datacenters capable of handling AI workloads.

Amazon's Cloud Computing Service division, Amazon Web Services (AWS), plans to invest at least 11 billion dollars in Georgia to expand its infrastructure and support various Cloud Computing and AI technologies.

Notably, the newly elected President of the USA, Trump, recently announced an investment plan of at least 20 billion dollars to build new Datacenters across the USA.

According to a research report by technology intelligence firm ABI Research, by the end of 2024, there will be 5,697 public Datacenters globally, mainly located in the Asia-Pacific region, Europe, and North America. By 2030, there will be 8,410 Datacenters operational.

The owners of large-scale Datacenters include well-known technology companies such as Microsoft (Azure), Amazon (AWS), Google (GCP), IBM, Oracle, and Alibaba (Alibaba Cloud). Among them, Microsoft and Amazon account for more than half of the existing large-scale Datacenters.

Are the tech giants battling for Datacenters, and is the Industry Chain expected to take off?

The investment frenzy in Datacenters poses a lasting and substantial demand for Chips, Servers, and Electrical Utilities. Each sector has spawned an Industry Chain worth hundreds of billions of dollars.

Datacenters, as the "heart" of modern information society, are responsible for the centralized collection, processing, storage, and transmission of massive amounts of data. In the rapidly developing field of AI, the AI computing center, with its powerful computing capabilities, has become the key "engine" supporting AI training and inference.

Its core infrastructure includes Servers, network devices (Switches, Routers, optical modules, Copper connections), power supplies, and advanced cooling systems (such as liquid cooling technology), which together ensure the efficient and stable running of Datacenters, providing solid support for data processing in the intelligent era.

Futu has organized information regarding companies in the Datacenter Industry Chain for mooer to reference:

[Semiconductors]:

In addition to the well-known ones, $Micron Technology (MU.US)$ 、 $Advanced Micro Devices (AMD.US)$ 、 $Intel (INTC.US)$ 、 $NVIDIA (NVDA.US)$ 、 $Broadcom (AVGO.US)$ 、 $Marvell Technology (MRVL.US)$ 、 $Taiwan Semiconductor (TSM.US)$ Outside,

It also includes the EDA duopoly. $Synopsys (SNPS.US)$ 、 $Cadence Design Systems (CDNS.US)$ ; Kings of Semiconductors IP $Arm Holdings (ARM.US)$ , ; Semiconductor Equipment Manufacturers $Lam Research (LRCX.US)$ 、 $KLA Corp (KLAC.US)$ 、 $TE Connectivity (TEL.US)$ 、 $ASML Holding (ASML.US)$ 、 $Applied Materials (AMAT.US)$ 。

[Datacenter]:

The largest Memory Chip manufacturer in the USA. $Micron Technology (MU.US)$ ；

CPUs include $Advanced Micro Devices (AMD.US)$ 、 $Intel (INTC.US)$ 、 $NVIDIA (NVDA.US)$ ；

GPUs & ASICs include $Alphabet-A (GOOGL.US)$ 、 $NVIDIA (NVDA.US)$ 、 $Advanced Micro Devices (AMD.US)$ 、 $Amazon (AMZN.US)$ 、 $Meta Platforms (META.US)$ 、 $Microsoft (MSFT.US)$ ；

The network includes $Broadcom (AVGO.US)$ 、 $Marvell Technology (MRVL.US)$ 、 $Cisco (CSCO.US)$ 、 $Arista Networks (ANET.US)$ 、 $NVIDIA (NVDA.US)$ 、 $Intel (INTC.US)$ ；

Storage includes $Dell Technologies (DELL.US)$ 、 $Pure Storage (PSTG.US)$ 、 $NetApp (NTAP.US)$ 、 $Hewlett Packard Enterprise (HPE.US)$ ；

Basic support includes Energy $Eaton (ETN.US)$ ; Cooling merchants $Vertiv Holdings (VRT.US)$ ; Contract manufacturing$Dell Technologies (DELL.US)$ 、 $HP Inc (HPQ.US)$ 、 $Super Micro Computer (SMCI.US)$ ; Operation and management suppliers $Digital Realty Trust Inc (DLR.US)$ 、 $Equinix Inc (EQIX.US)$ 。

[Cloud Computing Service]

Cloud Computing and Server include $NVIDIA (NVDA.US)$ 、 $Alphabet-A (GOOGL.US)$ 、 $Amazon (AMZN.US)$ 、 $Microsoft (MSFT.US)$ 、 $Alibaba (BABA.US)$ 、 $Apple (AAPL.US)$ 、 $Meta Platforms (META.US)$ and so on.

Citigroup previously stated that by 2030, the net growth of IT equipment load in Global Datacenters will reach 9-11 gigawatts, with about 70% coming from the third-party hosting market and the remaining 30% from tech giants like Microsoft, Amazon, Meta, and Google that build their own large-scale datacenters.

Currently, the prices of stocks related to datacenters may not fully reflect the market's demand for increased datacenter capacity, especially the demand for large-scale leases, therefore maintaining an optimistic attitude towards datacenter stocks.

Editor/Somer