Dell’Oro Group’s recently published “Data Center IT Capex Quarterly Report” forecasts a 17% growth of hyperscale cloud CapEx in 2024, bolstered by investments in AI and accelerated computing.
Dell’Oro senior research director Baron Fung said in a press release, “After growing just 4 percent in 2023, worldwide data center CapEx is projected to rebound to double-digit growth this year. 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.”
The report also projected that Amazon, Google, Meta, and Microsoft, the U.S.’s top four hyperscalers, will each increase their data center CapEx by double digits in 2024. Server and storage systems revenue is also expected to grow, increasing 18% in 2024.
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