Morgan Stanley Projects $1.4 Trillion Data Center Capital Spending by 2028
Resolved · market structure · Occurred · Assessed · 1 sources
This assessment is dated 2026-09-28. Check what remains unresolved below before relying on it.
What changed relative to expectations?
A projected $1.4 trillion capex allocation by hyperscalers accelerates procurement pipelines for critical data center power and cooling systems including Vertiv (VRT).
| Question | What the evidence establishes |
|---|---|
| What was reported? | Reported factMorgan Stanley projects hyperscaler capital spending on data center infrastructure will reach $1.4 trillion by 2028. |
| What else was confirmed? | Reported factInfrastructure providers including Vertiv and Iren are scaling vertically integrated AI cloud and thermal power solutions. |
| Does the valuation support acting? | Interpretation5 stored valuation assumptions for VRT; the latest is dated 2026-09-23. |
| What would change the assessment? | UnknownHyperscaler quarterly infrastructure capital expenditure announcements — Updated cloud infrastructure capital spending budgets and data center power contracting announcements |
What would this event cost your holdings?
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Test this event against my holdingsPublic research record
Research framework · page evidenceCompleted event assessment
order backlog expansion for data center liquid cooling and electrical power equipment
| Type | Claim | Scope |
|---|---|---|
| Assumption | Morgan Stanley projects hyperscaler capital spending on data center infrastructure will reach $1.4 trillion by 2028. | 2026-09-28 |
| Interpretation | order backlog expansion for data center liquid cooling and electrical power equipment | VRT |
Countercase, invalidators, and sources
Hyperscaler procurement contracts accelerate, pushing liquid cooling and power delivery backlog visibility beyond 2027.
- · Hyperscaler quarterly infrastructure capital expenditure announcements — Updated cloud infrastructure capital spending budgets and data center power contracting announcements
- 2 Data Center Stocks That Could Help Make You a Fortune · 2026-09-26
What remains unresolved
- Base path
- Data center capex compounds steadily toward $1.4 trillion, supporting high utilization rates across physical infrastructure providers.
- Adverse path
- Grid interconnect delays and utility power constraints stall physical data center buildouts, deferring equipment deliveries.
- Supportive path
- Hyperscaler procurement contracts accelerate, pushing liquid cooling and power delivery backlog visibility beyond 2027.
- · Hyperscaler quarterly infrastructure capital expenditure announcements — Updated cloud infrastructure capital spending budgets and data center power contracting announcementsnext month
Evidence
- 2 Data Center Stocks That Could Help Make You a Fortune2026-09-26
“As hyperscalers invest heavily in data center infrastructure to support AI services, with Morgan Stanley projecting $1.4 trillion in capital spending by 2028, two data center stocks offer attractive valuations: Iren, which is building an AI cloud platform with vertically integrated capabilities and Vertiv...”
Supports: Morgan Stanley projects hyperscalers will invest $1.4 trillion in data center capital spending by 2028.