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.
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. To purchase this report, please contact us at dgsales@delloro.com.
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 www.delloro.com.
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