Strong Data Center Capex Forecast Driven by AI
telecompetitor, Monday, April 1st, 2024
The worldwide data center segment sandwiched a moderate 4% capital expenditure growth in 2023, which fell between 2022's double-digit growth and expected healthy gains in 2024, according to a data center capex forecast from Dell'Oro Group. The category, which was led by spending on servers, reached $260 billion.
Increased server demand and average selling prices are expected to be the main drivers going forward, leading to double-digit increases in data center capex in 2024, the group predicted in an announcement this week.
Accelerated computing for AI applications and an expansion of data center footprints are the advancements expected to make an impact on growth in the near future.
Servers represented 41% of data center capex last year. This was followed by 'other' data center technology (31%), data center physical infrastructure (11%), storage systems (10%) and Ethernet switching (7%).