IDC: Global Artificial Intelligence Infrastructure Spending to Cross $200 Billion by 2028
IT News Online Staff
2025-02-21
According to the latest findings from IDC's Worldwide Semiannual Artificial Intelligence Infrastructure Tracker, the global Artificial Intelligence (AI) infrastructure market is on track for unprecedented growth, poised to surpass $200 billion in spending by 2028.
Organizations increased spending on compute and storage hardware infrastructure for AI deployments by 97 percent year-over-year in the first half of 2024, reaching $47.4 billion.
The AI infrastructure market has sustained double-digit since 2019, driven primarily by investment in servers for AI deployments. In H1 2024, servers accounted for 95 percent of the total spending, growing 105 percent compared to the same period last year. AI Infrastructure deployed in cloud and shared environments accounts for 72 percent of the total server spending in AI in H1 2024, as hyperscalers, cloud service providers and digital service providers expand their infrastructure capabilities. Traditional enterprises, by contrast, have largely lagged behind in adopting on-premises AI infrastructure.
Servers with an embedded accelerator are the preferred infrastructure for AI platforms, accounting for 70 percent of the total server AI infrastructure spending, growing 178 percent in the first half of the year 2024. IDC projects that accelerated servers will exceed 75 percent of the server AI infrastructure spending by 2028, growing at a 42 percent 5-year CAGR rate.
Storage spending in AI infrastructure has been driven by the need to manage large datasets required for training AI models, as well as storage of training, checkpoints and repositories of data for inference phases. This category reported an 18 percent year-over-year growth rate in H1 2024 with 40 percent of the spending coming from cloud deployments.
The United States leads the global AI infrastructure market, accounting for 59 percent of the total spending in H1 2024, followed by PRC (20 percent), APJ (13 percent) and EMEA (7 percent).
Over the next five years, IDC expects the PRC region to grow at the fastest CAGR (35 percent) followed by the USA (34 percent), APJ (21.3 percent) and EMEA (20.9 percent). By 2028, IDC forecast AI Infrastructure spending to reach $223 billion with servers deployed in cloud environments at 82 percent of the market total and accelerated servers around 74 percent of the total market spending.
"IDC expects AI adoption to continue growing at a remarkable pace as hyperscalers, CSPs, private companies and governments around the world are increasingly prioritizing AI. Growing concerns around energy consumption for AI infrastructure will become a factor in data centers looking for alternatives to optimize their architectures and minimize energy use," said Lidice Fernandez, Group Vice President, Worldwide Enterprise Infrastructure Trackers.
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