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

Digital travel platform Agoda has noted 13% more accommodation searches compared to the same month last year.

HEADLINES

This partnership goes beyond providing digital tools and connectivity; it seeks to drive long-term, sustainable growth for MSMEs, ensuring that even the smallest businesses...

ELECTRONICS

Philips EasyKey partnered with Megaworld and equipped their world-class properties with only the best-in-class smart locks we have on offer, the Philips EasyKey 9300.

HEADLINES

This nationwide conference, co-presented by Tier One Entertainment in partnership with Devcon Philippines and Filipino Web Development Peers, brings together tech innovators, student developers,...

HEADLINES

In the past, Grab Philippines experienced a 19% increase in daily transacting users for its ride-hailing services every last quarter of the year, with...

MOBILE PRODUCTS

While G-SHOCK is usually known for its rubber strap watches, this collection spotlights all-steel timepieces to merge the brand’s trademark toughness with a sleek,...

HEADLINES

Through a simple three-step application process—browsing the product catalog, selecting “Order Now” on the desired product, and completing a short order form—customers can enjoy...

APPS

SEA countries lead globally in the install share of Chinese apps, with Indonesia (22%), the Philippines (21%), Malaysia, Thailand (both 19%), Vietnam, and Singapore...

Advertisement