AI Drives a New $50 Billion Hardware Market

Data center infrastructure, specifically computing, memory, storage, and networking, is in the process of going through a reboot to support the growing artificial intelligence (AI) market, according to a new report from Tractica. Though AI represents just a small portion of a cloud data center’s workload and an even smaller portion of an enterprise’s workload, it drives a different type of application profile and thus requires different architectures and components.

Advances in technology have played a major part in enabling AI expansion and market penetration. In turn, AI applications are driving the development of new silicon and system architectures, storage and networking options, and delivery models. Meanwhile, enterprises are not abandoning on-premise computing and while hyperscalers have been driving AI implementation in the cloud, there is corresponding demand for on-premise and colocated solutions from early adopter enterprises. Tractica forecasts that global revenue for cloud and enterprise data center hardware for AI will reach almost $50 billion annually by 2025.

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