Dell'Oro Group Forecasts 25% Annual Growth in Data Center Accelerators Driven by AI

Dell'Oro Group announced in a press release that the global data center accelerator market is expected to grow at a 25% compound annual growth rate over the next five years. The firm attributes this expansion to the continued adoption of AI applications that require specialized, accelerator-equipped infrastructure.

Baron Fung, Senior Research Director at Dell'Oro Group, said that merchant GPUs and custom accelerators are central to the growth cycle, supporting a broad range of AI and domain-specific workloads. Hyperscale cloud providers are increasingly deploying custom accelerators to improve efficiency and reduce costs.

The report notes that complementary technologies such as CPUs, high-bandwidth memory (HBM), network interface cards (NICs), and storage must advance in tandem to achieve overall system performance gains. The pace of infrastructure buildouts is expected to continue straining supply and demand for key components, particularly memory and storage.

The forecast also highlights that while accelerators will dominate market spending, components supporting general-purpose compute and storage—such as CPUs and front-end NICs—will see slower growth due to improved server utilization and longer replacement cycles.