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Spending on data center computers dominates tech capex, Joseph Politano notes

Spending on data center computers dominates tech capex, Joseph Politano notes
Tech capex led by data center computers

Spending on data center facilities is only a small part of total capital expenditure in the technology sector, according to Joseph Politano. He explains that the majority of this spending is driven by the more expensive computers housed inside data centers.

Politano also highlights that total tech sector capital expenditures have reached a record high of more than $250 billion net per year.

Politano has recently reported that U.S. office construction fell to a 14-year low and investment in new buildings declined nearly 59 percent since COVID. In labor data, he noted that U.S. non-farm payrolls dropped by 92,000 as the unemployment rate reached 4.4 percent. These developments come alongside rising capital spending in the tech sector.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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