Published: 12 February 2024
Gartner estimates end-user spending on servers in 2023 to be $140 billion, an annual increase of 9.5% — influenced by strong demand for AI-optimized servers. In contrast, shipments declined sharply by 14.5% that year, but are expected to grow at a CAGR of 2.7% from 2022 through 2027.
Enterprise end-user spending on servers will remain suppressed as the uncertain macro environment stretches further into 2024.
Hyperscalers will refresh 20% of their general-purpose server installed base in 2024, but AI-optimized servers will account for close to 60% of their total server spending.
Demand for Arm-based servers will moderate by 2027, as advantages for Arm start to lessen.
Enterprise end-user spending will grow by 1.6% in constant currency while enterprise server shipments will grow by 3.1% in 2024. This represents $66 billion and 5.6 million units, respectively, which is 5% and 2% lower than the previous forecast iteration.
Hyperscale shipments
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Analysts:
Adrian O'Connell, Uko Tian, Wataru Katsurashima, Amit Goyal
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