{"id":362589,"date":"2025-10-15T15:38:22","date_gmt":"2025-10-15T10:08:22","guid":{"rendered":"https:\/\/www.technologyforyou.org\/?p=362589"},"modified":"2025-10-15T15:38:22","modified_gmt":"2025-10-15T10:08:22","slug":"gartner-says-ai-optimized-iaas-is-poised-to-become-the-next-growth-engine-for-ai-infrastructure","status":"publish","type":"post","link":"https:\/\/www.technologyforyou.org\/gartner-says-ai-optimized-iaas-is-poised-to-become-the-next-growth-engine-for-ai-infrastructure\/","title":{"rendered":"Gartner Says AI-Optimized IaaS Is Poised to Become the Next Growth Engine for AI Infrastructure"},"content":{"rendered":"<ul type=\"disc\">\n<li class=\"v1MsoNormal\"><b><i><span lang=\"EN-GB\">End-user Spending on AI-Optimized IaaS Is Projected to Total $37.5 Billion in 2026<\/span><\/i><\/b><\/li>\n<li class=\"v1MsoNormal\"><b><i><span lang=\"EN-GB\">Inferencing Workloads Will Become a Dominant Force for AI-optimized IaaS Demand<\/span><\/i><\/b><\/li>\n<li class=\"v1MsoNormal\"><b><i><span lang=\"EN-GB\">55% of AI-Optimized IaaS Spending Will Support Inference Workloads in 2026<\/span><\/i><\/b><b><span lang=\"EN-GB\">\u00a0<\/span><\/b><\/li>\n<\/ul>\n<p class=\"v1MsoNormal\"><span lang=\"EN-GB\">STAMFORD, Conn., October 15, 2025 \u2014\u00a0AI-optimized infrastructure as a service (IaaS) is emerging as the next disruptive growth engine for AI infrastructure. As a result, end-user spending is projected to grow 146% by the end of 2025, according to Gartner, Inc. a business and technology insights company.<\/span><span lang=\"EN-GB\">\u00a0<\/span><\/p>\n<p class=\"v1MsoNormal\"><span lang=\"EN-GB\">The AI-optimized\u00a0IaaS market\u00a0includes spending on high-performance computing (HPC) resources\u2014such as graphics processing units (GPUs), application-specific integrated circuits (ASICs), and other AI accelerators\u2014designed for large-scale AI processing.<\/span><span lang=\"EN-GB\">\u00a0<\/span><\/p>\n<p class=\"v1MsoNormal\"><span lang=\"EN-GB\">\u201cTraditional IaaS is maturing, however, AI-optimized IaaS spending growth projections are higher than that of traditional IaaS over the next five years,\u201d said\u00a0<strong>Hardeep Singh, Principal Analyst at Gartner.<\/strong> \u201cAs organizations expand their use of AI and\u00a0GenAI, they will need specialized infrastructure such as GPUs, tensor processing units (TPUs) or other AI ASICs, high-speed networking and optimized storage for fast parallel processing and data movement. As such, traditional central processing unit (CPU)-based IaaS will face significant challenges in meeting these demands.\u201d<\/span><span lang=\"EN-GB\">\u00a0<\/span><\/p>\n<p class=\"v1MsoNormal\"><span lang=\"EN-GB\">Gartner estimates worldwide end-user spending on AI-optimized IaaS will total $18.3 billion by the end of 2025 and $37.5 billion in 2026 (see Figure 1).<\/span><span lang=\"EN-GB\">\u00a0<\/span><\/p>\n<p class=\"v1MsoNormal\"><b><span lang=\"EN-GB\">Figure 1: Worldwide Spending and Annual Growth Rate of AI-Optimized IaaS, 2024-2029<\/span><\/b><span lang=\"EN-GB\">\u00a0<\/span><\/p>\n<p class=\"v1MsoNormal\"><span lang=\"EN-GB\"><img loading=\"lazy\" decoding=\"async\" id=\"v1Picture_x0020_2\" class=\"aligncenter\" src=\"https:\/\/technologyforyou.org:2096\/cpsess7487570529\/3rdparty\/roundcube\/?_task=mail&amp;_action=get&amp;_mbox=INBOX&amp;_uid=31468&amp;_token=W1Jdp1LaNDpf3QHNvllyZ7arkoOyCMBS&amp;_part=1.3&amp;_embed=1&amp;_mimeclass=image\" alt=\"A graph with numbers and numbers\n\nAI-generated content may be incorrect.\" width=\"521\" height=\"235\" border=\"0\" \/><\/span><\/p>\n<p class=\"v1MsoNormal\"><span lang=\"EN-GB\">Source: Gartner (October 2025)<i><\/i><\/span><\/p>\n<p class=\"v1MsoNormal\"><span lang=\"EN-GB\">As AI adoption scales across industries, inferencing workloads will become a dominant force driving demand for AI-optimized IaaS. Gartner projects end-user spending on inferencing to take over that of training-intensive workloads in 2026. Spending on inference-focused applications is expected to reach $20.6 billion, up from $9.2 billion in 2025. In 2026, 55% of AI-optimized IaaS spending will support inference workloads and it is projected to reach more than 65% in 2029.<\/span><span lang=\"EN-GB\">\u00a0<\/span><\/p>\n<p class=\"v1MsoNormal\"><span lang=\"EN-GB\">\u201cUnlike training which involves intensive, large-scale compute cycles that occur during model development and ongoing updates, inference happens continuously \u2014 powering real-time applications such as chatbots, recommendation engines, fraud detection systems and industry-specific applications,\u201d said Singh.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>End-user Spending on AI-Optimized IaaS Is Projected to Total $37.5 Billion in 2026 Inferencing Workloads Will Become a Dominant Force for AI-optimized IaaS Demand 55% of AI-Optimized IaaS Spending Will Support Inference Workloads in 2026\u00a0 STAMFORD, Conn., October 15, 2025 \u2014\u00a0AI-optimized infrastructure as a service (IaaS) is emerging as the next disruptive growth engine for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27765],"tags":[],"class_list":{"0":"post-362589","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-artificial-intelligence-news"},"_links":{"self":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/362589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/comments?post=362589"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/362589\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/media?parent=362589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/categories?post=362589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/tags?post=362589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}