Baron Fung, Vice President of Research at Dell'Oro Group, attributes the aggressive forecast to higher capital expenditure guidance from hyperscalers and a growing need for expanded global power capacity. While high-end accelerators remain the primary catalyst for spending, general-purpose servers are also expected to see renewed demand as companies integrate inference, agentic AI, and complex storage workloads into their operations.

The industry landscape is shifting as the newly defined AI-specialized cloud segment—comprised of model builders and neocloud providers—outpaces other sectors with a projected compound annual growth rate of nearly 60 percent. Despite this rapid expansion, the long-term trajectory hinges on power availability and supply chain stability. While the four largest U.S. hyperscalers are expected to command roughly half of all global expenditure, enterprise investment remains cautious, largely due to the uncertain immediate returns on AI technology.