The Dell’Oro Group Data Center IT Capex report includes quantitative and qualitative information, and outlook on the market and the top-ten Cloud service providers and the major customer segments. Spending (and volume) on servers, which drives the overall spending on data centers and its constitutes such as facilities and networking equipment, is an important measure that we track and rely on in this report.
Data center capex
Server capex
Server installed-base
Server unit shipments
Number of data centers in regions and availability zones at the worldwide level, and for the major regions: North America, EMEA, Asia Pacific, and CALA (the Caribbean and Latin America)
In addition, the report contains market-level and vendor revenue and unit market share information on the following technology segments:
Servers
Blade Servers
High-Density Servers
Stand-Alone Servers
Storage Systems
All Flash Arrays
Disk and Hybrid Arrays
Major vendors tracked include Dell Technologies; Hewlett Packard Enterprise; Inspur; Huawei; Lenovo; IBM; and White Box. We also provide market-level information by region including North America, EMEA, Asia Pacific, and CALA (the Caribbean and Latin America).
Accelerated Servers Propelled Data Center Capex to 46 Percent Growth in 2Q 2024, According to Dell’Oro Group
General-Purpose Server and Storage Recovery Underway
REDWOOD CITY, Calif. – September 24, 2024 –
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, accelerated servers proposed worldwide data center capex to 46 percent growth in 2Q 2024. Furthermore, the recovery of the general-purpose Server and Storage System markets appears to be underway, with most of the major OEMs experiencing revenue and unit growth year-to-date.
“The recent surge in data center spending has been fueled by shipments of accelerated servers for generative AI applications, which experienced four consecutive quarters of triple-digit Y/Y revenue growth,” said Baron Fung, Sr. Research Director at Dell’Oro Group. “Servers equipped with NVIDIA Hopper GPUs and custom accelerators, such as Google TPU and Amazon Trainium, saw increased deployment among hyperscale cloud service providers. Strong demand also came from enterprises and Tier 2 cloud service providers. Meanwhile, despite ongoing economic uncertainties, the general-purpose servers market is gradually recovering, as a refresh to the fourth- and fifth-generation CPU platforms is overdue,” explained Fung.
Additional highlights from the 2Q 2024 Data Center IT Capex Quarterly Report:
Worldwide data center capex is forecast for 35 percent growth in 2024, with accelerated servers contributing to most of the growth.
Dell led all OEMs in server revenue in 2Q 2024, followed by HPE and Supermicro. Accelerated servers accounted for an estimated 41 percent of the OEM server revenues during the quarter. White-box server vendors commanded more than a 50 percent revenue share, capitalizing on the hyperscale capex growth cycle.
Double-digit data center capex growth is projected through 2025, driven by new deployments of NVIDIA Blackwell and custom accelerator platforms to the hyperscale and rest of the market.
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.
