Record Surge in Data Center Capital Expenditure Driven by AI in Q2 2025
Record Surge in Data Center Capital Expenditure Driven by AI in Q2 2025
In a groundbreaking report published by Dell'Oro Group, significant insights into global data center capital expenditures (capex) reveal a striking upward trend. The report indicates that worldwide data center capex surged by an impressive 43% in the second quarter of 2025, driven primarily by a steep increase in spending on servers and networking infrastructure.
According to Baron Fung, Sr. Research Director at Dell'Oro Group, a staggering 76% increase in server spending is attributed to the growing deployment of NVIDIA Blackwell Ultra platforms among US hyperscalers. These include the likes of Amazon and Google, as well as various sovereign AI projects. Additionally, custom accelerators being developed by Google and Amazon have further propelled this growth.
Fung elaborates, "The market has witnessed a robust expansion, with the top four US cloud service providers—Amazon, Google, Meta, and Microsoft—investing heavily in enhancing their general-purpose computing capabilities. This has involved deploying the latest CPUs from industry leaders like Intel and AMD, alongside custom ARM CPUs to enhance server efficiency and consolidation."
While the report underscores a period of remarkable growth, it also cautions about potential risks. The upcoming months might see challenges due to macroeconomic pressures facing the enterprise sector as well as decreasing federal IT budgets. As a strategy to mitigate risk and preserve capital, businesses may opt to shift workloads to public cloud platforms.
Key Highlights from the Q2 2025 Data Center IT Capex Quarterly Report
- - Worldwide data center capex is anticipated to increase by over 30% throughout 2025 as hyperscalers expand their AI initiatives and support platform refreshes.
- - Despite a forecasted moderation in data center capex growth in 2026 for both hyperscalers and the overall market, the long-term outlook remains positive.
- - Dell has outperformed competitors like Supermicro to lead revenues from accelerated servers, with strong sales of NVIDIA Blackwell platforms. Furthermore, white-box vendors are now claiming over 60% of the server market, supported by AI deployments by hyperscalers.
About the Report
Dell'Oro Group's Data Center IT Capex Quarterly Report provides detailed insights into the capital expenditures related to data center infrastructures from the ten largest cloud service providers, as well as segments in telecommunications and enterprise customers. The report breaks down allocations for general-purpose and accelerated servers, storage systems, and other essential data center equipment while offering analyses on market trends, significant factors driving cloud provider capex growth within the quarter, and future projections. Those interested in acquiring the report may reach out to increase their strategic decision-making processes. For more inquiries, Dell'Oro Group can be contacted at +1.650.622.9400 or via their website.
About Dell'Oro Group
Dell'Oro Group specializes in providing market research and strategic competitive analysis specifically within telecommunications, security, enterprise network infrastructure, and data center markets. With a rich blend of quantitative data and qualitative insights, the firm aims to aid businesses in making informed, strategic decisions critical to their success.
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