Cloud infrastructure spending more than doubles in the third quarter of 2024

Year-end and future projections

For 2024, IDC projects a 74.3% year-over-year growth in cloud infrastructure spending, reaching $192 billion. Non-cloud infrastructure is expected to see a more modest increase of 17.9%, totaling $71.4 billion.

Shared cloud is set to drive much of this growth, with a forecasted 88.9% year-over-year increase to $157.8 billion. Dedicated cloud infrastructure spending is expected to grow 28.6%, reaching $34.2 billion, according to the report.

Globally, service providers are expected to account for the lion’s share of compute and storage investments in 2024, spending $183.1 billion — a 73.5% increase. Meanwhile, spending by enterprises and government entities is also poised for significant growth, reflecting a continued expansion of digital infrastructure and capabilities.

IDC defines its service provider category to encompass cloud providers, digital service platforms, communication service firms, hyperscalers, and managed service operators.

Regional and long-term insights

From a geographic perspective the report stated that the United States led cloud spending growth in Q3 2024 with a triple-digit surge of 148.3%, followed by China at 100%. Regions such as Asia Pacific (excluding Japan and China), Japan, and Western Europe reported robust double-digit growth, while Central and Eastern Europe was the only region to decline at -1.7%.

For the long-term, IDC has predicted a compound annual growth rate (CAGR) of 24.2% in cloud infrastructure spending through 2028, reaching $325.5 billion. Shared cloud infrastructure will account for 79.1% of this spend, further cementing its dominance in the market.