Accelerated servers – equipped with GPUs and custom accelerators – accounted for more than half of all server sales in the first quarter of 2024, according a recent Dell’Oro Group analysis. With companies also increasing usage as GPU supplies increase, hyperscale cloud service providers in the U.S. and China have been front and foremost in installing these servers for artificial intelligence (AI) applications.“Global data center capital expenditure saw the first double-digit growth in five quarters, driven by strong AI infrastructure investments,” said Baron Fung, Senior Research Director at Dell’Oro Group. Hyperscale cloud providers in the U.S. and China experienced over 40% aggregate growth.Highlights from the 1Q 2024 Data Center IT Capex Quarterly Report include the following:Server and storage system revenues are projected to grow over 30% in 2024, while network and physical infrastructure revenues are expected to see single-digit growthDell led all OEMs in server revenue for Q1 2024, followed by HPE and Supermicro. Accelerated servers represented approximately 27% of OEM server revenuesWhite box server vendors gained 11 points of revenue share year-over-year, driven by increased deployments of servers with GPUs and custom accelerators by hyperscalersThe accelerated server market is forecasted to grow by more than 80% in 2024According to these Dell’Oro Group findings and analysis, there has been a substantial movement toward accelerated servers, which reflects the rising significance of these servers in managing workloads associated with artificial intelligence as well as the larger trend of digital transformation in the corporate sector.