AI hype led to an enterprise datacenter spending binge in 2024 that won't last

Bets on the future demand for AI drove a 48 percent jump in spending on public cloud infrastructure last year, as cloud providers and enterprises both rushed to invest in servers and GPUs to support generative AI workloads. Statistics from Synergy Research Group indicate the total global splurge on datacenter hardware and …

[Jou (Mxyzptlk)]

Aw, don't worry.

Marketing will create a new hype which will blow enough air.

[O'Reg Inalsin]

Why the relatively high growth in Enterprise?

Probably the need to protect private information and worry that such information could be used for training.

[UnknownUnknown]

Re: Why the relatively high growth in Enterprise?

Migrations back to on-prem from the cloud when people realise that have been fleeced.

[sketharaman]

Re: Why the relatively high growth in Enterprise?

Very much happening aka Cloud Repatriation. AWS itself admits to it! https://www.theregister.com/2024/09/17/aws_cma_investigation/

[Groo The Wanderer - A Canuck]

The cracks are starting to show and it is obvious the AI Emperors are wearing no clothes. They've been overselling the product so much for so long, but now you're getting major fiasco's with treating aggregate statistics as being magically "intelligent" and pretending that hallucinations aren't the very real issue that they clearly are.

I've learned to ignore the likes of Google's AI summaries on their search results because they're so extremely unreliable and so very often completely wrong.

Once the class actions for damages from the fallout of such nonsense start getting filed, the bubble will burst and the bankruptcies will ensue and the red ink shall flow like the red sea...

[sketharaman]

Cloud Repatriation Anyone?

Even assuming this analyst is right in its prediction about AI-related infra, not sure if it has considered the effect of Cloud Repatriation in which companies are moving their (AI and non-AI) workloads back to onprem datacenters from public cloud. El Reg had carried an article quoting IDC on this: https://www.theregister.com/2024/10/30/cloud_repatriation_about_specific_workloads/. If this happens at scale, as IDC predicts it would, spends on enterprise datacenters are likely to go up even further rather than down.

[IGotOut]

Great news...

...the destruction of the planet's resources are going to be very slightly slower.

I'm sure those potentially facing water shortages and blackouts will devastated to hear it's slowing down.