target audience: TECH SUPPLIER Publication date: Sep 2024 - Document type: Market Analysis Perspective - Doc Document number: # US51349124
Market Analysis Perspective: Worldwide Cloud to Edge Datacenter Trends, 2024
Content
- 27 slides
Get More
When you purchase this document, the purchase price can be applied to the cost of an annual subscription, giving you access to more research for your investment.
Related Links
Abstract
This IDC Market Analysis Perspective provides detailed information on the cloud-to-edge datacenter landscape. It considers the overall condition of the market in 2024, the key competitors, and evolving trends — along with buyer insight and guidance for enterprises and service providers.
Datacenter facility investment will accelerate over the next five years, growing from $220 billion in 2023 to $587 billion in 2028, a 21.7% CAGR, outpacing both IT spending and GDP growth. The growth is fueled by continued investment in digital transformation and AI adoption and acceleration, which will be deployed in hybrid multicloud environments. Datacenter capacity growth will be experienced in phases. The first phase will involve service providers creating a foundational infrastructure for model training. While that will continue to expand, the second phase will see enterprise on-premises growth to tune models in private AI environments. The third phase shows growth at the edge as organizations operationalize and expand AI. Datacenter capacity expansion will leave a sprawling datacenter landscape that will raise energy consumption and operations costs.
As organizations seek to add business value through digital transformation and AI, datacenter investments are increasingly scrutinized. This has caused a shift in their top initiatives toward traditional business measures to ensure sound and efficient management. With the increased investment, the priorities of datacenter operators are changing and are focused on sustainability and financial management. Organizations will require assistance for tech vendors to deploy AI, which is a new skill, while effectively managing costs and environmental impact.