Accelerated servers equipped with GPUs and custom accelerators accounted for more than half of all server sales in 1Q 2024, with the advance of AI workloads creating a finite resource.
Not only are the hyperscalers leading the way in deploying accelerated servers for AI workloads, but enterprises are also increasing their adoption as GPU supplies improve, according to analyst house Dell’Oro Group.
“Worldwide data centre capex experienced the first double-digit growth in five quarters. The hyperscale cloud service providers in the US and China saw an aggregate growth rate exceeding 40%, as AI-infrastructure investments maintained strong growth momentum,” said Baron Fung, senior research director at Dell’Oro Group.
“Meanwhile, there is optimism for a recovery in the general-purpose server market later this year, as end users replace servers overdue for refresh to the latest CPU platforms from Intel and AMD,” added Fung.
According to Dell’Oro’s 1Q 2024 Data Center IT Capex Quarterly Report, server and storage system revenues are forecast for growth greater than 30% in 2024, while network and physical infrastructure revenues are expected to grow in single digits.
Dell led all OEMs in server revenue in 1Q 2024, followed by HPE and Supermicro. Accelerated servers accounted for an estimated 27% of OEM server revenues during the quarter.
White box server vendors gained 11 points of revenue share year-over-year compared to the OEMs, as hyperscalers increased deployments of servers equipped with GPUs and custom accelerators.
The accelerated server market is forecast to increase by more than 80% in 2024.
