Data Center Directions: Servers and Infrastructure for Generative AI Fuel Future Growth

This post was originally published on Network Computing

The allure and potential of AI to enterprises and hyperscalers has captured the imagination of businesses worldwide, but what must they consider to implement it in their data centers? Specifically, they need an infrastructure that meets the compute, networking, and storage requirements of their AI implementations and workloads.

To that end, a look at infrastructure spending shows the impact of AI on enterprises today. Driven largely by sales of AI-powered accelerated servers, global data center purchases surged 38% year over year in the first half of 2024, according to a report covering all aspects of data center equipment spending from the Dell’Oro Group, a market research and analysis firm.

AI Servers and Infrastructure Spending Fuel Future Growth

Looking ahead to the full year 2024, data center CapEx is projected to increase by 35 percent to over $400 billion, with spending on AI servers and infrastructure leading the way, according to the report. Hyperscale cloud service providers are racing to expand their AI offerings, creating a strong demand for these specialized systems.

“AI infrastructure adoption is still in its initial stages for enterprises, according to Baron Fung, Senior Research Director at Dell’Oro. “Organizations are figuring out how much to invest, as the return on investment

Read the rest of this post, which was originally published on Network Computing.

Previous Post

Don’t Fall for the Mockolate

Next Post

Real-time Enterprise File: Redefining Legacy File with the Pure Storage Platform