Building AI factories at enterprise scale
IDC reports the worldwide server market grew 30% in Q1 2025 to $122.6bn, with AI infrastructure investment transitioning from cyclical to durable spending. Beyond hyperscalers, enterprises across finance, healthcare, manufacturing, and government are deploying agentic AI in-house to maintain data sovereignty, achieve predictable token costs, and accelerate delivery. Suppliers will compete on implementation speed and lifecycle management services, especially amid ongoing chip supply constraints.
Key points
- Server market surged 30% YoY to $122.6bn in Q1 2025, driven by AI infrastructure spending
- Enterprises adopting in-house AI systems for data control and cost predictability over cloud models
- Inference expected to exceed 70% of computing demand by next year, growing fastest at edge
- Regulated sectors require on-premises AI to meet sovereign data requirements
Summary and key points written by AI from the headline and a short excerpt, so they can be incomplete or wrong. The Register did the reporting; read the original for the full story.
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