Morgan Stanley has revised its hyperscaler capital expenditure forecast to $1.2 trillion by 2027, up from its previous estimate of $951 billion for May 2026. Approximately 75% of these investments will go toward AI infrastructure, with 60% of hardware capex dependent on imported components. Crypto miners such as Marathon Digital, Riot Platforms, and Core Scientific are pivoting toward AI hosting, exemplified by Core Scientific’s partnership with CoreWeave. This convergence creates pricing pressure and GPU allocation constraints as data centers demand massive amounts of electricity, intensifying competition with crypto miners in regions like Texas, the Nordics, and the Middle East.
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