Morgan Stanley just lifted its global hyperscaler capital expenditure forecast to $1.2 trillion for 2027, up substantially from earlier estimates. The bank also projects spending could reach $1.4 trillion by 2028, signaling a massive infrastructure push largely driven by AI demand. For 2026, the expected outlay climbed to $805 billion from $765 billion, reflecting rapid acceleration in cloud investment.
Most of this spending around 75% targets AI infrastructure. This surge creates intense demand for GPUs, with roughly 60% of AI-related hardware relying on imported components. Supply chains face pressure amid tariffs and logistical challenges, stretching procurement timelines. Morgan Stanley’s revision notably outpaces its May 2026 forecast of $951 billion for hyperscaler capex in 2027, underscoring how quickly the cloud sector is expanding.
What this means for crypto mining
The GPU supply crunch hits hard for crypto miners and decentralized compute networks. Giants like Microsoft and Google are snapping up Nvidia chips in bulk, squeezing availability for crypto firms pivoting toward AI workloads. Companies like Marathon Digital and Core Scientific, which have moved into AI hosting, now find themselves competing for the same hardware. Core Scientific’s partnership with CoreWeave highlights this shift, as former Bitcoin mining facilities are being retrofitted to serve AI processing needs.
Decentralized compute platforms such as Render and Akash Network also stand to benefit from the expanding market, with total addressable value climbing by hundreds of billions. This convergence between cloud hyperscalers and crypto miners could reshape the competitive landscape for hardware resources in the near future.
Material is for informational purposes only and not financial advice.
