AI Gives The Sleeping Network Switch Market A Good Kick
The Register, Friday, June 20th, 2025
The long-dormant market for datacenter network switches is booming thanks to AI.
Analyst firm IDC on Wednesday shared numbers from its latest quarterly switch tracker, which recorded $11.7 billion in revenue during the first quarter of 2025, a 32.3 percent year-over-year revenue increase. The firm says that this boom is being driven by growing deployment of "high-bandwidth, low-latency network infrastructure to support AI workloads."
IDC recorded 54.7 percent growth for datacenter switch revenue in the quarter, an acceleration faster than the 32.1 percent growth in 2024's final quarter.