Subj : Spending on data centers hit a high in 2024, but it won't last
To   : All
From : TechnologyDaily
Date : Thu Jan 09 2025 17:15:05

Spending on data centers hit a high in 2024, but it won't last

Date:
Thu, 09 Jan 2025 17:06:13 +0000

Description:
Report claims Data center infrastructure equipment revenue for 2024 is 
expected to total more than $280 billion.

FULL STORY
======================================================================Data 
center spend is up 34% year-over-year thanks to public cloud infrastructure 
Total market revenue is expected to reach $282 billion Investments continue 
despite sustainability concerns 

Total data center hardware and software spend for 2024 grew hugely on 
previous years as the demand for AI hit a new high, new figures have claimed. 

New research from Synergy Research Group estimates spend will grow 34% 
compared with 2023, thanks largely to a 48% rise in public cloud 
infrastructure spend  the sector accounts for more than half (55%) of the 
entire market. 

More broadly, increasing demand for public cloud services has been credited 
with driving cloud infrastructure investments for 15 years, highlighting its 
significant impact on the industry. Data center investments skyrocketed in 
2024 

Key to the 2024 boom, says Synergy, was Nvidias explosive growth. The 
chipmaker, now the second-most valuable company in the world with a value of 
$3.431 trillion, has seen share prices rise 2,193% over the past five years. 

The company wrote: Nvidias sales directly to hyperscale and enterprise 
clients catapulted it into the ranks of leading data center vendors. 

If Synergys fourth-quarter expectations ring true, based on real data from 
the first three quarters of the year, total data center infrastructure 
equipment revenues will reach $282 billion. 

GPUs and generative AI systems lit a fire under the market in 2024, resulting 
in record growth rates for the industry," noted Chief Analyst John Dinsdale. 

However, some analysts are calling 2024s growth unsustainable. Separately, 
Canalys Senior Director Rachel Brindley added: Continued substantial 
expenditure will present new challenges, requiring cloud vendors to carefully 
balance their investments in AI with the cost discipline needed to fund these 
initiatives. 

Despite the warning, hyperscalers are continuing ti invest heavily in 
artificial intelligence. Microsoft Vice Chair and President Brad Smith 
recently said the company was preparing to invest $80 billion in AI data 
centers throughout its 2025 fiscal year. 

Days later, US President-elect Donald Trump announced $20 billion in funding 
from Emirati billionaire and DAMAC founder Hussain Sajwani to support data 
center infrastructure across Arizona, Illinois, Indiana, Louisiana, Michigan, 
Ohio, Oklahoma and Texas, alluding to billions more in funding. You might 
also like These are the best AI tools and best AI writers Amazon is spending 
billions on expanding its data centers in Georgia Consider accessing compute 
power through the best cloud computing services



======================================================================
Link to news story:
https://www.techradar.com/pro/spending-on-data-centers-hit-a-high-in-2024-but-
it-wont-last


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