Morgan Stanley forecasts cloud spending to reach $1.2T by 2027, and crypto miners are paying attention

Morgan Stanley just bumped its forecast for global hyperscaler capital expenditures to roughly $1.2 trillion by 2027, with a potential climb to $1.4 trillion by 2028. The revised projection represents a significant jump from the bank’s earlier May 2026 estimate of $951 billion, now raised to $1.116 trillion for 2027. For 2026 alone, projected spending was bumped from $765 billion to around $805 billion. Wells Fargo independently arrived at a similar conclusion, estimating that just the top four cloud providers could hit $1.1 trillion in AI infrastructure spending by 2027. Where the money is actually going Approximately 75% of this hyperscaler spending is expected to stem from AI infrastructure demands. About 60% of the hardware capex relevant to AI involves imported components, a detail that matters in a trade environment where tariffs and supply chain disruptions can ripple through procurement timelines. Morgan Stanley had previously anticipated global AI spending on public cloud to reach $328 billion by 2025. The trajectory from that figure to $1.2 trillion in just two years illustrates how quickly the demand curve has steepened. Why crypto markets should care about server farms ...