Morgan Stanley(US:MS)2025-03-07 07:47Investment Rating - The report does not explicitly provide an investment rating for the industry but discusses the implications of Rmb100bn capex from hyperscalers on the data center market [1]. Core Insights - Every Rmb100bn capex on servers translates to 1000MW of new data center demand, assuming a hyperscaler's total annual capex is Rmb120bn. Full EBITDA contribution will take 2-3 years to be visible due to construction and utilization ramp-up cycles [7]. - IDC operators need to invest Rmb20bn in capex to capture the growth opportunity, which translates to Rmb20 million capex per MW in hyperscaler remote sites [7]. - There is no significant difference in IDC's capex mix for GPU or CPU servers based on current mainstream product pricing and power density [7]. - Key assumptions include no in-house data centers being built in hyperscalers' capex plans and that NV H20 remains available, allowing hyperscalers to enjoy some price discounts due to large volumes [7]. Summary by Sections Hyperscalers' Capex Impact - Hyperscalers' Rmb100bn annual capex translates to substantial new demand in the data center market, specifically 1000MW for every Rmb100bn spent [7]. IDC Operators' Response - IDC operators are encouraged to invest Rmb20bn to effectively capture the growth opportunities presented by hyperscalers [7]. Server Capex Mix - The report indicates that there is no major difference in the capex mix for GPU versus CPU servers, suggesting a uniform approach in investment strategies [7].