Cloud AI Building Boom Propels Server, Storage Market To Record Highs
CIODIVE, Wednesday, September 18th, 2024
Hyperscaler hunger for compute capacity drove up prices for non-AI data center components during the second quarter, too, according to a Dell'Oro Group report.
Cloud's appetite for infrastructure drove data center component revenues to record highs during the second quarter of the year, according to a Dell'Oro Group report published Wednesday.
The market for servers and storage systems grew 127% year over year to $54 billion, buoyed by hyperscaler hunger for high-capacity graphics processing units and custom accelerators, the industry market analyst firm said.
Broad enterprise demand for general-purpose cloud services and CPU compute helped drive the gains, according to Dell'Oro Group Senior Research Director Baron Fung. 'Memory and storage drive components for non-AI workloads contributed to this growth as prices rose from last year's low,' Fung said in the report.