Key points:
• Cloud infrastructure spending surged to a record $57.3 billion in the third quarter of 2024, with a 115.3% year-over-year increase.
• Shared cloud infrastructure dominated the market, growing 136.5% year-over-year to $47.9 billion, accounting for 62.4% of total infrastructure spending.
• The cloud segment benefited from growing adoption of advanced AI-enabled servers despite challenges such as rising average selling prices (ASPs).
As reported by IDC, spending on cloud infrastructure has reached unprecedented heights, with a staggering 115.3% year-over-year increase in the third quarter of 2024. This surge has pushed total cloud infrastructure spending to a record $57.3 billion. In contrast, non-cloud infrastructure spending saw a more modest 28.6% year-over-year increase, reaching $19.6 billion.
The cloud segment’s remarkable growth is primarily driven by the increasing adoption of advanced AI-enabled servers, which has led to a significant boost in demand for accelerated servers. According to Juan Pablo Seminara, Director for Worldwide Enterprise Infrastructure Trackers at IDC, "Cloud infrastructure spending growth continues to be driven by investments in accelerated servers for AI initiatives and large HPC projects."
The report also highlights that 2024 has seen a significant focus on infrastructure for AI model development, but future years will emphasize scaling AI inference capabilities using less dense platforms. This shift is expected to lead to a less aggressive pace of demand for dense GPU-based platforms in 2025 and beyond.
IDC has projected that cloud infrastructure spending will continue to grow, with a 74.3% year-over-year increase, reaching $192 billion in 2024. Non-cloud infrastructure is expected to see a more modest 17.9% increase, totaling $71.4 billion.
Cloud infrastructure is here to stay, and organizations must adapt to this new reality. As the demand for cloud-based solutions continues to grow, businesses must prioritize scalability, flexibility, and cost efficiency to stay ahead of the competition.
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