AI Infrastructure Spending Forecast to Be Over a Trillion Dollars Over the Next Five Years, According to Dell'Oro Group

　　REDWOOD CITY, Calif., Aug. 1, 2024 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, we revised our data center capex forecast upward to a 24 percent compound annual growth rate (CAGR) by 2028 as a result of surging demand in AI-related data center infrastructure.

　　"AI has the potential to generate more than a trillion dollars in AI-related infrastructure spending in cloud and enterprise data centers over the next five years," said Baron Fung, Senior Research Director at Dell'Oro Group. "AI infrastructure, which includes servers with GPU or custom accelerators, along with dedicated networking, storage, and facilities, are highly capital-intensive. While the industry continues to assess the potential return on AI-related investments, major efforts have been underway in the ecosystem in achieving long-term sustainable capex growth," explained Fung.

　　Additional highlights from the Data Center IT Capex 5-Year July 2024 Forecast Report:

　　Worldwide server revenue is forecast to reach nearly $0.5 trillion by 2028.

　　Accelerated servers may account for more than half of the total server revenues by 2028.

　　Top 4 US-based Cloud SPs—Amazon, Google, Meta, and Microsoft—will account for half of global data center capex as early as 2026.

　　About the Report

　　The Dell'Oro Group's Data Center IT Capex 5-Year Forecast Report offers a complete overview of the market with historical data from 2014 to the present. The forecasts provide a comprehensive overview of market and technology trends and include tables covering data center and server capex and server unit shipment forecasts for Top 4 US Cloud, Top 4 China Cloud, Top 3 Tier 2 Cloud, Rest-of-Cloud, Telco, and Enterprise customer segments. The report also breakout markets for data center infrastructure equipment, along with server, storage system, and other data center equipment revenues sub-segments. To purchase this report, please contact us at dgsales@delloro.com.

　　About Dell'Oro Group

　　Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

　　SOURCE Dell'Oro Group