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

The five solutions unveiled will lay a solid foundation for aviation to “go broadband, go cloud, and go AI.”

HEADLINES

Reincubate – an innovator in edge AI and audio-video processing – and HP Inc. announced that they have formed a strategic multi-year partnership to...

Biz Solutions

Powered by the new IBM Telum  II processor, IBM z17 expands the system's capabilities beyond transactional AI capabilities to enable new workloads.

HEADLINES

FortiAI has now expanded to encompass Fortinet’s entire AI-driven approach across security and network operations, protecting environments, and securing AI models and LLMs.

HEADLINES

Sportradar, through its industry-leading Universal Fraud Detection System (UFDS), will deliver integrity monitoring for more than 8,200 men’s and women’s matches organized annually by...

HEADLINES

The facility serves as a platform to recognize the critical role engineers play in building the future of digital infrastructure.

HEADLINES

This innovative, AI-powered solution simplifies and accelerates data interaction, empowering organizations to uncover insights, automate visualizations, and drive impactful business outcomes.

HEADLINES

Expect a day packed with energy and competitive spirit as local teams battle it out for a chance to qualify for the vivo 3x3...

Advertisement