Connect with us

Hi, what are you looking for?

White Papers

Accelerated computing to lift hyperscale cloud capex to 17% growth in 2024

After growing just 4% in 2023, worldwide data center capex is projected to rebound to double-digit growth this year.

Photo from Pexels.com

According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, accelerated computing is forecast to lift hyperscale cloud capex to 17 percent growth in 2024. AI infrastructure investments in the enterprise are also gaining momentum.

“After growing just 4% in 2023, worldwide data center capex is projected to rebound to double-digit growth this year,” said Baron Fung, Sr. Research Director at Dell’Oro Group. While accelerated computing for generative AI applications will be the front-runner in data center investments, we expect a modest recovery in general-purpose servers and storage demand following a period of steep correction. Until last year, the hyperscalers led the way for AI-related investments. This year, we expect accelerated systems to account for an increasing part of server OEM sales and carry a significant backlog as enterprise customers deploy AI workloads,” explained Fung.

Additional highlights from the 4Q 2023 Data Center IT Capex Quarterly Report:

  • Dell led all OEMs in server revenue in 2023, followed by HPE and IEIT Systems. The revenue share of the white box server vendors surpassed that of the top 3 server OEMs in 2023.
  • Server and storage systems revenue is forecast to grow by 18 percent in 2024, as the product mix shifts to AI-optimized servers and to server platforms with the latest x86 CPUs from Intel and AMD, as well as ARM CPUs.
  • The top 4 US hyperscalers—Amazon, Google, Meta, and Microsoft—will each increase their data center capex by double digits in 2024.

Advertisement. Scroll to continue reading.
Advertisement
Advertisement
Advertisement

Like Us On Facebook

You May Also Like

HEADLINES

By expanding its cost optimization services to GCP, following AWS and Microsoft Azure, CloudSpend now covers the three largest public cloud computing platforms worldwide...

HEADLINES

DITO Telecommunity launched a new campaign, DITO SA PUSO KO, featuring celebrities Dingdong Dantes and Marian Rivera of the film “Rewind”.

HEADLINES

In partnership with smartphone brand, realme, TechLife brought together the TechLife x realme Summer Hideout experience filled with music, entertainment, and various perks.

HEADLINES

NPN is a global program for technology partners who offer solutions built on or powered by NVIDIA technologies.

White Papers

The report underpinned the growing importance of disclosing how brands use customer data to deliver AI-powered experiences. It also raised a warning about the...

HEADLINES

This new service enhances operations with a suite of capabilities spanning across tools, large language models (LLMs), streamlined processes, and robust governance, and lays...

HEADLINES

An influx of AI companies including Modal, Suno, Together AI, and Twelve Labs are deploying OCI AI Infrastructure to accelerate AI training and inferencing...

Biz Solutions

Incredible new enterprise experiences leverage spatial computing to customize workspaces, collaborate on 3D designs, deliver specialized employee training, and guide remote fieldwork in entirely...

Advertisement