IDC: AI Infrastructure Spending to Surpass $100B by 2028

Published Date : 26/11/2024 

Organizations have increased their spending on compute and storage hardware infrastructure for AI deployments by 37% year-over-year in the first half of 2024, reaching $31.8 billion, according to the latest findings from IDC. 

NEEDHAM, Mass., November 26, 2024 – The global Artificial Intelligence (AI) infrastructure market is set for unprecedented growth, with projections indicating that spending will exceed $100 billion USD by 2028. This forecast is based on the latest findings from the International Data Corporation (IDC) Worldwide Semiannual Artificial Intelligence Infrastructure Tracker. In the first half of 2024, organizations increased their spending on compute and storage hardware for AI deployments by 37% year-over-year, reaching a total of $31.8 billion.

The AI infrastructure market has experienced double-digit growth for nine consecutive half-years, driven primarily by investments in servers for AI deployments. In the first half of 2024, servers accounted for 89% of the total spending, marking a 37% increase compared to the same period last year. AI infrastructure deployed in cloud and shared environments accounts for 65% of the total server spending in AI, as hyperscalers, cloud service providers, and digital service providers expand their infrastructure capabilities. Traditional enterprises, however, have been slower to adopt on-premises AI infrastructure.

Servers with embedded accelerators are the preferred infrastructure for AI platforms, accounting for 58% of the total server AI infrastructure spending, with a growth rate of 63% in the first half of 2024. IDC projects that accelerated servers will exceed 60% of the server AI infrastructure spending by 2028, growing at a 19% compound annual growth rate (CAGR) over five years.

Storage spending in AI infrastructure has been driven by the need to manage large datasets required for training AI models, as well as the storage of training, checkpoints, and repositories of data for inference phases. This category reported a 36% year-over-year growth rate in the first half of 2024, with 56% of the spending coming from cloud deployments.

The United States leads the global AI infrastructure market, accounting for almost half of the total spending in the first half of 2024, followed by China (23%), the Asia-Pacific region (16%), and Europe, the Middle East, and Africa (10%). Over the next five years, IDC expects the Asia-Pacific region to grow at the fastest CAGR of 20%, followed by the USA (16%), EMEA (13%), and China (11%). By 2028, IDC forecasts AI infrastructure spending to reach $107 billion, with servers deployed in cloud environments accounting for 75% of the market total and accelerated servers around 56% of the total market spending.

Frequently Asked Questions (FAQS):

Q: What is the projected global AI infrastructure spending by 2028 according to IDC?

A: IDC projects that global AI infrastructure spending will surpass $100 billion by 2028, with a forecasted total of $107 billion.

Q: How much did global AI infrastructure spending increase in the first half of 2024?

A: In the first half of 2024, global AI infrastructure spending increased by 37% year-over-year, reaching $31.8 billion.

Q: What percentage of AI infrastructure spending is attributed to servers in the first half of 2024?

A: In the first half of 2024, servers accounted for 89% of the total AI infrastructure spending.

Q: Which region is expected to grow at the fastest CAGR in AI infrastructure spending over the next five years?

A: The Asia-Pacific (APJ) region is expected to grow at the fastest CAGR of 20% in AI infrastructure spending over the next five years.

Q: What is the primary driver of storage spending in AI infrastructure?

A: The primary driver of storage spending in AI infrastructure is the need to manage large datasets required for training AI models, as well as the storage of training, checkpoints, and repositories of data for inference phases. 

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