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AI advancements are fueling cloud infrastructure spending

The latest data from the IDC Worldwide Quarterly Enterprise Infrastructure Tracker paints a compelling picture of growth in cloud infrastructure sales on demand. The fourth quarter of 2023 saw an 18.5% year-over-year increase in spending on compute and storage infrastructure for cloud deployments. It is a significant shift in the technological landscape, where AI is now front and center in the push to find cloud infrastructure to run it.

The spending surge indicates shifting budgets; a contrasting trend is the decline in the total number of units shipped. IDC says this shows a strategic move towards high-capacity, GPU-heavy servers with higher average price tags favored by hyperscalers. The idea is that these servers can do more than those driven by traditional CPU-based servers, thus, you need fewer.

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