Worldwide Cloud Infrastructure Expenditure Set to Rise 33.3% by 2025
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Synopsis
A recent report reveals that global cloud infrastructure spending will increase by 33.3% in 2025, reaching $271.5 billion. IDC highlights significant growth in both shared and dedicated cloud infrastructures, driven by rising demand for GPU server shipments.
Key Takeaways
- 33.3% growth in cloud infrastructure spending by 2025.
- Expenditure expected to reach $271.5 billion.
- Shared cloud infrastructure to grow 25.7% year-over-year.
- Dedicated cloud infrastructure anticipated to rise by 71.8%.
- GPU-based market growth projected at 46.8%.
New Delhi, March 30 (NationPress) The global cloud infrastructure expenditure is projected to surge by 33.3% in 2025, reaching $271.5 billion in comparison to 2024, as reported by a new study.
The International Data Corporation (IDC) indicates that investment in compute and storage infrastructure for cloud services, encompassing both dedicated and shared IT environments, rose by 99.3% year-over-year in the fourth quarter of 2024 (4Q24) to $67.0 billion.
Cloud infrastructure spending remains on a growth trajectory, outpacing the non-cloud sector, which saw a 25.8% increase to $22.0 billion in 4Q24.
The cloud infrastructure segment witnessed a robust demand growth of 33.5%, alongside a rise in average selling prices (ASPs), primarily driven by the increasing shipments of GPU servers.
The IDC report forecasts a decline of -4.9% for non-cloud infrastructure, projected to be $68.1 billion. In contrast, shared cloud infrastructure is anticipated to grow by 25.7% year-over-year, reaching $213.7 billion for the entire year. Spending on dedicated cloud infrastructure is expected to increase significantly by 71.8% to $57.8 billion in 2025.
Moreover, the GPU-accelerated cloud infrastructure market is expected to expand by 46.8% in 2025, attaining a valuation of $157.8 billion, as investments in AI infrastructure continue to see significant backlogs and upcoming projects.
“The growth in cloud infrastructure spending has consistently exceeded market expectations once again in the fourth quarter,” stated Juan Pablo Seminara, director for IDC's Worldwide Enterprise Infrastructure Trackers.
Despite initial uncertainties regarding the necessity for substantial investments in AI infrastructure highlighted by DeepSeek’s R1 initial impact, the industry is recognizing that the transition from basic chatbots to sophisticated reasoning models to agentic AI will demand exponentially more processing power, particularly for inferencing.
“Even with improved investment efficiency, IDC anticipates a 17.8% CAGR for cloud infrastructure market growth over the next five years,” he added.
