Cloud service and infrastructure market revenues have reached $427 billion in the first half of 2024, according to a report from Synergy Research Group.
Artificial intelligence (AI) has driven up investments in cloud data center infrastructure and as a result, its growth rate has overtaken that of cloud services revenue.
The report added that in addition to AI, hyperscalers have also driven up cloud data center infrastructure spending through data center expansion.
"One interesting aspect of this is the way in which it is changing the structure of the supply side of the industry. Over the last ten years, ODMs have continued to eat up server market share, and now we see Nvidia's explosive growth, which is largely fueled by sales to hyperscalers, either directly or indirectly. In the first half, revenues from Nvidia's data center business unit far surpassed the combined revenues of Dell and HPE in data centers," said John Dinsdale, a chief analyst at Synergy Research Group.
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