Global cloud service and infrastructure revenues reached $427 billion in the first half of 2024, marking a 23 percent increase compared to the same period in 2023.
For the first time in years, growth in cloud data center infrastructure spending has outpaced cloud services, driven by significant investments in generative AI technologies, Synergy Research Group reveals.
Infrastructure spending on public and private cloud data centers grew by 30 percent, surpassing the 21 percent growth in IaaS, PaaS, and SaaS services.
Despite this, the cloud services sector remains double the size of data center spending. The expansion of hyperscale operators continues to fuel this trend, with their operational data center capacity increasing by 24 percent compared to 2023, and their future data center pipeline soaring by 47 percent.
Leaders across cloud services and infrastructure include Microsoft, Amazon, Google, and Salesforce. Nvidia emerged as a dominant player in data center hardware, surpassing traditional leaders like Dell and HPE. The U.S. remains the epicenter of cloud growth, accounting for 44 percent of global cloud service revenues and over half of all hyperscale data center capacity.
Synergy Research Group Chief Analyst John Dinsdale highlights how AI is reshaping the cloud industry’s supply chain, particularly with Nvidia’s explosive growth in server sales to hyperscale operators, surpassing even traditional hardware giants like Dell and HPE.
The rise of AI and continued expansion of hyperscale data centers signal further growth in both cloud services and infrastructure, with the U.S. leading the charge and Chinese companies also playing a significant role.
