Accelerated Computing Will Generate Market Growth Opportunities
REDWOOD CITY, Calif. – August 9, 2022 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, global data center capex is on track to reach $377 billion by 2026, with the hyperscale cloud service providers accounting for more than half the market total. We predict increasing the adoption of accelerated computing will generate market growth opportunities.
“The data center of the future will continue to evolve, with new accelerated computing architectures on the horizon enabling AI applications that are more automated, intelligent, and immersive for end-users,” said Baron Fung, Research Director at Dell’Oro Group. “The hyperscale service providers will lead the market in investing in new accelerated computing technologies, with an emphasis on the cutting-edge server and network architectures, as well as enhanced thermal management solutions. However, there is much uncertainty in the near term for the overall market. Lingering supply chain challenges, persistent inflationary pressures, and declining economic growth could weigh down on enterprise data center spending in the near term. Despite these near-term uncertainties, our long-term outlook is optimistic, as enterprises undergo digital transformation initiatives, deploying new hybrid cloud workloads, and with the cloud service providers and telecom operators extending their infrastructure to the network edge,” explained Fung.
Additional highlights from the July 2022 Data Center IT Capex 5-Year Forecast Report:
- Worldwide data center capex is forecast to grow 13 percent by 2026.
- Adoption in new server CPU platforms and accelerated computing will be primary capex growth drivers in the data center.
- Edge computing is forecast to comprise 8 percent of total data center infrastructure spending by 2026.
The Dell’Oro Group’s Data Center IT Capex 5-Year Forecast Report offers a complete overview of the market with historical data from 2014 to the present. The forecasts provide a comprehensive overview of market and technology trends and include tables covering data center and server capex and server unit shipments forecasts for Top 4 US Cloud, Top 3 China Cloud, Top 3 Tier 2 Cloud, Rest-of-Cloud, Telco, and Enterprise customer segments. The report also breakout markets for data center infrastructure equipment, along with server, storage system, and other data center equipment revenues sub-segments. To purchase this report, please contact us at firstname.lastname@example.org.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications and enterprise networks, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
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