Apple, Facebook Data Center Spending To Cool In 2013

Investor’s Business Daily

Torrid spending by Apple (AAPL), Google (GOOG), (AMZN), eBay (EBAY), Facebook (FB) and others on data centers packed with computer servers will cool off in 2013, says aUBS report.

Increased spending on data centers has given a lift to networking gear vendors such as Cisco Systems (CSCO), Juniper Networks (JNPR), F5 Networks (FFIV) and Riverbed Technology(RVBD), says UBS analyst Amitabh Passi in a preview of Q3 earnings. In the report, Passi says data center capital spending will rise only 3% in 2013, down from 37% this year.

UBS used data from company reports, FactSet and its own estimates to come up with its numbers.

“By 2016, IDC expects the total number of data centers in the U.S. will decline from 2.94 million in 2012 to 2.89 million. This decline will be concentrated in internal server rooms and closets, with a very small decline in midsize local data centers,” said the IDC report. “Despite the slight decline in total data centers, total data center space will increase significantly, growing from 611.4 million square feet in 2012 to more than 700 million square feet in 2016.”

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