Unprecedented AI growth
The global AI infrastructure market is on track for unprecedented growth reaching $758 billion USD in spending by 2029. Companies increased spending on compute and storage hardware infrastructure for AI deployments by 166% year-over-year in the second quarter of 2025, reaching $82.0 billion, according to market research firm International Data Corporation (IDC).
Big tech companies’ trust in AI was also shown when Meta, Microsoft and Alphabet presented their quarterly reports announcing huge amounts to be invested in AI development.
Meta expects capital expenditures 2025 to be between $70bn to $72bn, up from earlier estimated $66bn to $72bn. Alphabet raised its forecast 2025 to $91bn to $93bn, up from earlier estimated $85bn. Microsoft’s capital expenditures in the quarter was $34.9bn. “We continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead,” CEO Satya Nadella said.
IDC notes that the AI infrastructure market has consistently sustained high double-digit growth for a few years, driven primarily by investment in servers for AI deployments.
“Infrastructure deployed in cloud and shared environments accounts for 84.1% of the total spending in AI in 2Q25, with hyperscalers, cloud service providers and digital service providers as the largest contributors to AI spending (86.7%) in the quarter.”
IDC data shows that in 2Q25, servers accounted for 98% of the total AI Centric spending, growing 173.2% compared to the same period last year.
Servers with an embedded accelerator are the preferred infrastructure for AI platforms, accounting for 91.8% of the total server AI infrastructure spending—growing 207.3% in the second quarter of the year 2025.
IDC projects that accelerated servers will exceed 95% of the server AI infrastructure spending by 2029, growing at a 42% 5-year CAGR (compound annual growth rate).
“IDC expects AI adoption to be mainly driven by hyperscalers and cloud service providers along with AI based research and education projects gaining importance by the end of the forecast period”, says Lidice Fernandez, IDC group vice president.
The United States leads the global AI infrastructure market, accounting for 76% of the total spending in 2Q25, followed by China (11.6%), Asia-Pacific and Japan (6.9%), and Europe, Middle East and Africa (4.7%).
Over the next five years, IDC expects China to grow at the fastest CAGR (41.5%) followed by the USA (40.5%), EMEA (17.3%) and APJ (14.3%).
Moonshot News is an independent European news website for all IT, Media and Advertising professionals, powered by women and with a focus on driving the narrative for diversity, inclusion and gender equality in the industry.
Our mission is to provide top and unbiased information for all professionals and to make sure that women get their fair share of voice in the news and in the spotlight!
We produce original content, news articles, a curated calendar of industry events and a database of women IT, Media and Advertising associations.
