Accelerated Server Spending Jumps 76 Percent as NVIDIA Blackwell Ultra, Google, and Amazon Custom Chips Ramp
REDWOOD CITY, Calif. – September 16, 2025 – According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, worldwide data center capex increased 43 percent in 2Q 2025, with broad-based growth across servers, networking, and physical infrastructure.
“Accelerated server spending rose 76 percent, driven by the ramp of NVIDIA Blackwell Ultra platforms across US hyperscalers, neo-cloud providers, and sovereign AI projects. Custom accelerators from Google and Amazon also added to the momentum,” said Baron Fung, Sr. Research Director at Dell’Oro Group. “Beyond AI, the Top 4 US cloud service providers—Amazon, Google, Meta, and Microsoft—expanded general-purpose compute capacity, deploying the latest CPUs from Intel and AMD, along with custom ARM CPUs, to improve server consolidation and efficiency. Risks remain for the rest of the year, including macroeconomic headwinds in the enterprise market and reduced US federal IT budgets. These factors may prompt enterprises to shift workloads to public clouds in order to preserve capital in the near term,” explained Fung.
Additional highlights from the 2Q 2025 Data Center IT Capex Quarterly Report:
- Worldwide data center capex is projected to rise more than 30 percent in 2025, as hyperscalers raise guidance to support AI buildouts, platform refreshes, and increased general-purpose compute demand.
- Data center capex growth is expected to moderate in 2026 for both hyperscalers and the broader market. Long-term growth prospects, however, remain strong.
- Dell overtook Supermicro to lead accelerated server revenue among OEMs, supported by large-scale shipments of NVIDIA Blackwell platforms. White box vendors captured more than 60 percent of the server market, driven by hyperscaler AI deployments and a surge in general-purpose server shipments.
Dell’Oro Group’s Data Center IT Capex Quarterly Report details the data center infrastructure capital expenditures of each of the ten largest Cloud service providers, as well as the Rest-of-Cloud, Telco, and Enterprise customer segments. Allocation of the data center infrastructure capex for general-purpose and accelerated servers, storage systems, and other auxiliary data center equipment is provided. The report also discusses market trends, drivers of the leading Cloud service providers’ capex growth during the quarter, and the outlook for the next year. To purchase this report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks infrastructure, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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