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Data center spending to grow 18% CAGR over next 5 years, fueled by AI – Dell'Oro

Accelerated computing to account for a quarter of the data center capex spend. #pressrelease

January 25, 2024

1 Min Read

REDWOOD CITY, Calif. – According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, worldwide data center capex is forecast for a compound annual growth rate of 18 percent as investments shift towards AI. We anticipate accelerated computing that are optimized AI workloads will account for a quarter of the data center capex.

Additional highlights from the January 2024 Data Center IT Capex 5-Year Forecast Report:

  • Worldwide server unit shipments are forecast to grow 8 percent by 2028.

  • Over twenty percent of the global server deployments in 2028 are forecast to be accelerated.

  • By 2028 the Top 4 US-based Cloud SPs—Amazon, Google, Meta, and Microsoft—will account for half of global data center capex.

Read the full press release here.

Dell'Oro

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