Analysis Cloud infrastructure is undergoing upheaval with service providers rushing to deploy servers configured for AI model training, often at the cost of delaying the regular refresh cycle of their standard server hardware.

This generative AI boom has reshaped the priorities of many of the cloud providers, with a recent report indicating that capital spending on cloud data center infrastructure will increase by 30 percent this year.

But even that estimate may be out of date, according to Vlad Galabov, head of Cloud and Datacenter Research at Omdia.

"Some of the cloud service providers have just indicated that they may raise their capex above what they previously predicted, and as a reminder, capex increased by about a third, so to raise it even more, it's really reaching unprecedented levels," Galabov said .