According to a recent Dell’Oro report, AI infrastructure spending will propel datacentre capex to over $500 billion by 2027. But the report cautioned that near-term cloud and enterprise capex growth would decelerate as the market undergoes digestion.
“Despite near-term datacentre capex growth headwinds as the major cloud service providers and enterprises optimise their infrastructure, forthcoming technology transitions will stimulate long-term growth,” said Baron Fung, Senior Research Director at Dell’Oro. “Most notably, the hyperscale cloud service providers will prioritise their investments toward accelerated systems for AI applications for both their public-cloud platform and SaaS offerings. We will see continuous optimisation across the entire datacentre stack, with the deployment of next-generation servers featuring high-core counts and deeper memory that are attached to next-generation networks. Meanwhile, the rest of the market will invest in accelerated systems more selectively, with most enterprises adopting a hybrid-cloud strategy.”
Additional highlights from the Report:
• Worldwide datacentre capex is forecast to grow 15% by 2027;
• Over 20% of the global server deployments in 2027 may be accelerated; and
• Dell’oro’s edge-computing forecast was trimmed as the ecosystem and compelling use cases have been slow to materialise.