The surge in AI has catalyzed unprecedented growth in server sales, with revenues reaching $77.3 billion in Q4, reflecting a 91% increase from the previous year. IDC reports that data centers are expanding in response to growing demand from hyperscalers, cloud service providers, and private entities. Notably, servers with embedded GPUs have seen a dramatic rise, contributing significantly to this growth. However, such rapid expansion raises concerns regarding energy consumption and potential power constraints, prompting some tech firms to seek alternative energy solutions for their data centers.
IDC expects AI adoption to continue growing at a remarkable pace as hyperscalers, CSPs, private companies, and governments around the world are increasingly prioritizing those investments.
The fast pace at which hyperscalers and cloud service providers have been adopting servers with embedded GPUs has fueled the server market growth which has more than doubled in size since 2020.
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