AI infrastructure spending expected to surpass $100 billion within five years

In the first half of 2024, organizations around the world significantly increased their spending on Artificial Intelligence infrastructure, with expenditures reaching $31.8 billion. This represented a remarkable year-over-year growth of 37% in the market, highlighting a sustained double-digit growth trend over nine consecutive half-years. The primary drivers of this expansion have been investments in servers purposely designed for AI deployments. Traditional enterprises, however, have struggled to keep pace with the rapid adoption of AI infrastructure compared to cloud deployments. Accelerated servers have emerged as the preferred choice for AI platforms, accounting for 58% of total server investments in 1H24. The United States remained the dominant player in this market, with almost half of the spending, followed by China (23%), APJ (16%), and EMEA (10%). IDC forecasts that by the year 2028, total spending in the AI infrastructure market will exceed $107 billion, with a significant shift toward cloud environments and accelerated servers. The increasing demand for AI capabilities is reshaping the technology landscape globally, pushing organizations to invest more heavily in advanced infrastructures that accommodate AI applications and training environments. These developments are crucial as the importance of AI in various sectors continues to rise, prompting businesses to innovate and evolve through technology.