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Data Center Capex Surged 51 Percent to $455 Billion in 2024, According to Dell'Oro Group
Thursday, March 27, 2025
Spending on AI Training Infrastructure Grew by 161 Percent
REDWOOD CITY, Calif., March 19, 2025 /PRNewswire/ -- According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, global data center capex surged 51 percent to $455 billion in 2024. Accelerated servers optimized for AI training workloads deployed by the hyperscalers accounted for most of the growth.
"The top 10 hyperscalers accounted for more than half of global data center capex in 2024, driven largely by heightened investments in AI infrastructure," said Baron Fung, Sr. Research Director at Dell'Oro Group. "While NVIDIA's Hopper architecture--followed by Blackwell systems later in the year--dominated spending, custom accelerators from Google, Amazon, and Microsoft also fueled growth. Additionally, Tier 2 cloud providers like xAI and CoreWeave significantly ramped up their capex, approaching hyperscaler levels due to increased GPU deployments. Hyperscalers and colocation providers also expanded investments in infrastructure, including dedicated AI networks and high-power facilities to support these compute-intensive workloads," explained Fung.
Additional highlights from the 4Q 2024 Data Center IT Capex Quarterly Report:
-- Global data center capex is projected to rise by more than 30 percent in
2025, with sustained demand on AI infrastructure and a broader recovery
in general-purpose infrastructure for servers and networking.
-- Dell led all OEMs in server revenue for 2024, with HPE and Supermicro
trailing behind. Accelerated servers accounted for an estimated 36
percent of OEM server revenue as AI adoption expanded in the
non-hyperscale market. Meanwhile, white-box server vendors captured over
56 percent of total server revenue, driven by strong hyperscale demand
for AI servers.
-- Ongoing economic uncertainties may curb enterprise IT spending, while
supply constraints and the rise of cloud and consumption-based services
could result in near-term fluctuations in AI investments within
enterprise data centers.
About the Report
Dell'Oro Group's Data Center IT Capex Quarterly Report details the data center infrastructure capital expenditures of each of the ten largest Cloud service providers, as well as the Rest-of-Cloud, Telco, and Enterprise customer segments. Allocation of the data center infrastructure capex for general-purpose and accelerated servers, storage systems, and other auxiliary data center equipment is provided. The report also discusses market trends, drivers of the leading Cloud service providers' capex growth during the quarter, and the outlook for the next year. 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, enterprise networks infrastructure, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions, contact Dell'Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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SOURCE Dell'Oro Group
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