The latest IDC report said Cloud infrastructure spending is projected to achieve growth of 33.3 percent in 2025, reaching $271.5 billion. Con-cloud infrastructure is expected to decline by 4.9 percent to $68.1 billion.
Shared cloud infrastructure spending will increase by 25.7 percent to $213.7 billion, and dedicated cloud infrastructure will grow by 71.8 percent to $57.8 billion. The GPU-based accelerated cloud infrastructure market is set to expand by 46.8 percent, reaching $157.8 billion, driven by AI infrastructure investments and ongoing demand.
Juan Pablo Seminara, director for IDC’s Worldwide Enterprise Infrastructure Trackers, forecasts cloud infrastructure spending to grow at a 17.8 percent CAGR from 2024 to 2029, reaching $461.9 billion and comprising 83.0 percent of total compute and storage infrastructure spending.
Shared cloud infrastructure will make up 80.5 percent of cloud spending, growing at a 16.9 percent CAGR to $371.7 billion, while dedicated cloud infrastructure will expand at a 21.8 percent CAGR to $90.3 billion.
Non-cloud infrastructure spending is expected to rebound with a 5.7 percent CAGR, reaching $94.4 billion by 2029. Service providers’ spending on compute and storage infrastructure will grow at a 17.5 percent CAGR, reaching $448.0 billion in 2029.
Spending on compute and storage infrastructure for cloud deployments grew 99.3 percent year-over-year in Q4 2024, reaching $67.0 billion, while non-cloud infrastructure spending increased by 25.8 percent to $22.0 billion.
Cloud infrastructure unit demand saw a 33.5 percent rise, driven by the accelerated increase in GPU server shipments. Shared cloud infrastructure spending surged 124.4 percent to $57.0 billion, capturing 64.0 percent of total infrastructure spending, while dedicated cloud infrastructure grew 21.8 percent to $10.0 billion.
Service providers, including cloud and hyperscalers, spent $65.6 billion on compute and storage infrastructure, up 103.9 percent, making up 73.8 percent of the total market. Non-service providers, such as enterprises and governments, increased spending by 23.5 percent to $23.3 billion. IDC forecasts service provider spending to reach $262.1 billion in 2025, growing 30.9 percent year-over-year.
IDC projects a 17.8 percent CAGR for cloud infrastructure over the next five years, driven by increasing demand for AI processing capacity.
