“Today’s largest AI clusters built by hyperscalers, are already approaching 100 thousand accelerators, with projections reaching up to one million in the near future. Due to the limited power capacity in each data center—and the high-power consumption of these accelerators—AI clusters are increasingly distributed across multiple data centers,” stated Sameh Boujelbene, Vice President for Ethernet Switch market research at Dell’Oro Group.

“Some skepticism is warranted. After all, operators invested over $2 trillion in wireless capex between 2010 and 2023 to build out 4G and 5G, yet revenues remain flat,” said Stefan Pongratz, Vice President of RAN and Telecom Capex research at Dell’Oro Group. “Looking ahead, operators will need to optimize their spectrum roadmaps to address various data traffic scenarios…

“The high-level message is clear. The flattish revenue trajectory and the difficulties with monetizing new technologies and opportunities are impacting the risk appetite and willingness to raise the capital intensity levels for extended periods,” said Stefan Pongratz, Vice President for RAN and Telecom Capex research at Dell’Oro Group