Huge tech firms are on tempo to pour greater than $180 billion into information heart expansions and associated infrastructure prices, based on Dell’Oro Group. The market analysis agency shared its evaluation of information heart capital expenditures with CIO Dive forward of a December report.
Amazon, Google, Meta and Microsoft collectively elevated infrastructure investments by 81% yr over yr in the course of the third quarter of 2024, the agency estimated.
The constructing increase was fueled by AI mannequin coaching, the first focus of information heart investments this yr, Dell’Oro Group Senior Analysis Director Baron Fung mentioned.
AWS, Azure and Google Cloud every reported main year-over-year spikes in capital expenditures and AI revenues in Q3 and forecast extra of the identical within the coming months.
Learn extra of the most recent information heart funding information
Cloud suppliers invested in AI-optimized infrastructure to produce mannequin builders with compute and put together for a good bigger wave of processing demand. The three largest public cloud suppliers – AWS, Azure and Google Cloud – accounted for roughly 80% of Q3 spending, Dell’Oro Group discovered.
Whereas AI chipmaker Nvidia noticed revenues almost double yr over yr within the three-month interval ending Oct. 27, the marketplace for conventional central processing has picked up, too. CPU, reminiscence and storage vendor revenues elevated greater than 90% in Q3, marking the fourth consecutive quarter of double-digit progress, based on Dell’Oro Group.
