Worldwide Data Center Capex to Grow at a 24
Percent CAGR by 2028
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.
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SOURCE Dell'Oro Group