""It's not as though the data center is going away. The enterprise data center is here to stay. There's still enough spending by enterprises on servers, licensed software, and the skill sets they need to maintain and operate the environment that currently exists." The overall trend toward placing new enterprise workloads in the cloud remains firmly in place, Lovelock says, but it's not so overwhelming as to cannibalize current levels of enterprise data center deployments."
"By 2029, the hyperscalers will account for more than 60% of total data center capacity, while on-premises capacity will sink to only 20%. (Colocation facilities make up the remaining 20%.) However, Synergy points out that these relative percentages exist in a rapidly expanding universe. The hyperscalers are building out new data center capacity as fast as they can to accommodate the explosion of interest in AI and gen AI."
Enterprise data centers continue in active use with global enterprise spending on data centers totaling $66 billion in 2024. New enterprise workloads increasingly target the cloud, yet that shift has not eliminated existing on‑prem deployments. On‑prem data center capacity declined from nearly 60% six years ago to 37% in 2024, while hyperscalers’ share is projected to exceed 60% by 2029 and colocation to account for about 20%. Hyperscalers are rapidly building capacity to serve surging AI and generative AI demand. In raw server and storage terms, enterprise on‑prem capacity is expected to remain relatively stable.
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