AI back-end networks to drive $80B of data center switch spending over next five years – Dell'OroAI back-end networks to drive $80B of data center switch spending over next five years – Dell'Oro

InfiniBand leads in the near term, ethernet set to dominate soon. #pressrelease

July 16, 2024

1 Min Read

According to the new AI Networks for AI Workloads report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, spending on switches deployed in AI back-end networks used to connect accelerated servers is forecast to approach $80 B over the next five years, nearly doubling the total data center switch market opportunity. Current data center switch market spending is on front-end networks used primarily to connect general-purpose servers but AI workloads will require a new back-end infrastructure buildout. While InfiniBand is currently dominating the AI back-end network market, Ethernet is poised to take over soon.

Additional highlights from the AI Networks for AI Workloads Report:

  • AI networks will accelerate the transition to higher speeds. The majority of the switch ports deployed in AI back-end networks are expected to be 800 Gbps by 2025 and 1600 Gbps by 2027.

  • While most of the market demand will come from Tier 1 Cloud Service Providers, we have significantly raised our forecast for Tier 2/3 and large enterprises in light of their accelerated pace of AI workload adoption and infrastructure deployment.

Read the full press release here.

Dell'Oro

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