Worldwide data centre capex is forecast at a CAGR growth rate of 18% as investments shift towards AI and it is expected to exceed US$200 billion by 2028, according to market research firm Dell’Oro Group.
The firm also expects accelerated computing optimised for AI workloads will account for a quarter of the data centre capex.
Majority of investments will be deployed by hyperscale providers, the firm said.
“To drive long-term sustainable growth, the cloud service providers will seek to streamline general-purpose computing infrastructure costs by transitioning to next-generation server platforms and rack-scale architectures,” said Dell’Oro Group senior research director Baron Fung.
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“We also anticipate increased vertical integration efforts by the hyperscalers to control costs and bring further optimisations for their full stack. Meanwhile, the enterprise segment faces near-term headwinds related to economic uncertainties, and will adopt a hybrid cloud model for AI and traditional IT workloads,” added Fung.
The January 2024 Data Centre IT Capex 5-Year Forecast Report listed the following highlights and findings:
- Worldwide server unit shipments are forecast to grow 8% by 2028.
- Over 20% of the global server deployments in 2028 are forecast to be accelerated.
- By 2028, the top 4 US-based Cloud SPs—Amazon, Google, Meta, and Microsoft—will account for half of global data centre capex.