Spending on data centers hit a high in 2024, but it won't last

• Data center spend is up 34% year-over-year thanks to public cloud infrastructure
• Total market revenue is expected to reach $282 billion
• Investments continue despite sustainability concerns

Total data center hardware and software spend for 2024 grew hugely on previous years as the demand for AI hit a new high, new figures have claimed.

New research from Synergy Research Group estimates spend will grow 34% compared with 2023, thanks largely to a 48% rise in public cloud infrastructure spend – the sector accounts for more than half (55%) of the entire market.

More broadly, increasing demand for public cloud services has been credited with driving cloud infrastructure investments for 15 years, highlighting its significant impact on the industry.

Data center investments skyrocketed in 2024

Key to the 2024 boom, says Synergy, was Nvidia’s “explosive growth.” The chipmaker, now the second-most valuable company in the world with a value of $3.431 ...