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“The data center of the future will continue to evolve, with new accelerated computing architectures on the horizon enabling AI applications that are more automated, intelligent, and immersive for end-users,” said Baron Fung, Research Director at Dell’Oro Group. “The hyperscale service providers will lead the market in investing in new accelerated computing technologies, with an emphasis on the cutting-edge server and network architectures, as well as enhanced thermal management solutions. However, there is much uncertainty in the near term for the overall market. Lingering supply chain challenges, persistent inflationary pressures, and declining economic growth could weigh down on enterprise data center spending in the near term. Despite these near-term uncertainties, our long-term outlook is optimistic, as enterprises undergo digital transformation initiatives, deploying new hybrid cloud workloads, and with the cloud service providers and telecom operators extending their infrastructure to the network edge,” explained Fung.
Additional highlights from the July 2022 Data Center IT Capex 5-Year Forecast Report:
Worldwide data center capex is forecast to grow 13 percent by 2026.
Adoption in new server CPU platforms and accelerated computing will be primary capex growth drivers in the data center.
Edge computing is forecast to comprise 8 percent of total data center infrastructure spending by 2026.