AI Design Shifts Slow Data Center Physical Infrastructure Market in 1Q 2024, According to Dell'Oro Group [Yahoo! Finance]
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Source: Yahoo! Finance
from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, Data Center Physical Infrastructure (DCPI) revenue growth slowed to a mid-single-digit rate in 1Q 2024, as design shifts to support accelerated computing infrastructure and AI workloads need more time to materialize. "As I predicted, DCPI revenue growth slowed in 1Q 2024 as deployments related to AI workloads simply need more time to materialize, and to a lesser extent, a difficult comparison to an unseasonably strong 1Q 2023," said Lucas Beran , Research Director at Dell'Oro Group. "On a positive note, the pipeline for AI-related DCPI deployments continues to grow, as evidenced by vendor backlogs that have eclipsed levels seen during the 2022 supply chain constraints. Fulfillment of this demand is simply a matter of time." "Many factors are impacting the timing of this DCPI growth related to AI – Vendor manufacturing expansion, data center c
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