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Yahoo
2 days ago
- Business
- Yahoo
AI Boom Propels Server and Storage Components to 62 Percent Growth in 1Q 2025, According to Dell'Oro Group
Surging Demand for Accelerators, HBM, and NICs Underpins Record Expansion Across the AI Infrastructure Stack REDWOOD CITY, Calif. , June 10, 2025 /PRNewswire/ -- 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, the on-going AI expansion cycle drove the server and storage component market to 62 percent year-over-year growth in 1Q 2025. The surging demand for accelerators, HBM, and NICs underpins record expansion across the AI infrastructure stack. "The AI accelerator market was led by robust uptake of NVIDIA's Blackwell GPU platform as well as the continued rollout of custom accelerators by major cloud service providers," said Baron Fung, Senior Research Director at Dell'Oro Group. "We estimate Blackwell has already surpassed an estimated 50 percent of the company's high-end GPU shipments during the quarter, which in turn is prompting upgrades in networking, storage, and infrastructure across the data center. "Meanwhile, custom silicon continues to gain traction with hyperscalers expanding their deployment of custom accelerators for both training and inference of large foundational models. Beyond AI-specific hardware, general-purpose components such as CPUs, memory, storage drives, and NICs also saw meaningful growth in early 2025. This was partly driven by a recovery in mainstream enterprise server demand, as well as inventory builds and component price hikes ahead of the anticipated expiration of the 90-day reciprocal tariff pause," Fung added. Additional highlights from the 1Q 2025 Data Center IT Semiconductors and Components Quarterly Report: The Server and Storage Systems Component market is forecast to grow by over 50 percent in 2025 despite tariff-related uncertainties. SK Hynix led the HBM market with a 64 percent revenue share, followed by Samsung and Micron. ARM CPUs now hold 25 percent of the server market, driven by the NVIDIA GB200 Blackwell ramp and hyperscaler custom deployments. Smart NIC and DPU revenues increased by 71 percent because of strong deployment of Ethernet adapters in AI clusters. About the Report Dell'Oro Group's Data Center IT Semiconductors and Components Quarterly Report tracks revenue, unit and capacity shipments and unit and capacity pricing, along with market share of major semiconductor and component manufacturers that supplies into the data center server and storage system markets starting from 2018. Technology of focus will be major server and storage semiconductors and components such as CPUs, accelerators such as GPUs, FPGAs, and custom AI ASICs, Ethernet Adapters and Smart NICs, HBM and DRAM, and HDDs and NAND/SSDs. In addition, we will provide a forecast of the demand for these components based on shipments of servers and storage system to the hyperscale cloud service providers and to the rest-of-the-market. To purchase this report, please contact us at dgsales@ About Dell'Oro Group Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks infrastructure, and data center 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 View original content to download multimedia: SOURCE Dell'Oro Group
Yahoo
05-02-2025
- Business
- Yahoo
Data Center Capex to Surpass $1 Trillion by 2029, According to Dell'Oro Group
AI Infrastructure Spending Sustains Strong Growth Momentum REDWOOD CITY, Calif., Feb. 5, 2025 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, worldwide data center capex is projected to surpass $1 trillion by 2029. AI infrastructure spending will maintain its strong growth momentum despite ongoing sustainability efforts. "We project that data center infrastructure spending could surpass $1 trillion annually within five years. While AI spending has yet to meet desired returns and efficiency improvements, long-term growth remains assured, driven by hyperscalers' multi-year capex cycles and government initiatives such as the $500 billion Stargate Project," said Baron Fung, Senior Research Director at Dell'Oro Group. "Although recent advancements in AI model training efficiency from DeepSeek have been disruptive, innovations have been in progress for some time to drive greater efficiencies and lower the total cost of ownership in building and operating AI data centers. Key areas of focus include advancements in accelerated computing through GPUs and custom accelerators, LLM optimizations, and next-generation rack-scale and network infrastructure—all crucial to enabling sustainable growth from both a cost and power perspective," Fung explained. Additional highlights from the Data Center IT Capex 5-Year January 2025 Forecast Report: Worldwide data center capex is forecast for a CAGR of 21 percent by 2029. Accelerated servers for AI training and domain-specific workloads could represent nearly half of data center infrastructure spending by 2029. While the Top 4 US-based cloud service providers (SPs)—Amazon, Google, Meta, and Microsoft—will account for nearly half of global data center capex in 2025, select Tier 2 cloud SPs are poised to increase capex significantly over the next several years. About the ReportThe 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 4 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 dgsales@ About Dell'Oro GroupDell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT 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 View original content to download multimedia: SOURCE Dell'Oro Group Sign in to access your portfolio
