12 Days of Data Centre Christmas: November 2024
Ahead of the US election in November 2024, we hypothesised how the results would inevitably impact the global chip market.
Both candidates recognised the critical role semiconductors play both within the digital economy and for national security. What’s clear is that the US will continue to boost its domestic chip manufacturing industry, particularly as it eyes regions like Taiwan who remain successful in developing advanced AI chips.
US President Joe Biden kept chip tariffs from Trump’s presidency after winning the 2020 Presidential election. Likewise, he recently added tariffs worth US$18bn on imports including steel, semiconductors and electric vehicles.
Significantly, Biden imposed regulations on the People’s Republic of China, a current chip leader, to limit investment into Chinese technology sectors. Implemented in 2024, the order increased regulation in Chinese AI, semiconductor and quantum computing sectors that inevitably impacted international business relations.
In addition to this, the US CHIPS Act was drafted to reduce reliance on international chip markets, including US$39bn in tax benefits, loan guarantees and grants to encourage American companies to build new chip manufacturing plants in the US.
Despite this, the country’s semiconductor industry still relies heavily on manufacturing capabilities around the world.
It has also been suggested by Reuters that these export controls are likely to remain in place. Likewise, both candidates are expected to maintain a tough stance on international chip manufacturing, if elected, which could impact the global chip market.
Former President and current President-Elect Donald Trump in particular has called for a ‘resurgence of American manufacturing’ and has suggested implementing high tariffs on foreign-made computer chips. A move like this could potentially disrupt global supply chains and increase consumer costs.
Gartner: IT Spending Growth Led by AI Data Centre Demand
European organisations will spend US$1.28tn on information technology in 2025, marking an 8.7% rise from 2024, according to technology research and consulting firm Gartner, in a forecast representing the most substantial increase in European IT spending since the post-pandemic period.
The forecast points to sustained growth in IT spending across Europe, which is expected to reach US$1.18tn by the end of 2024. The findings were presented at Gartner's IT Symposium/Xpo in Barcelona, a conference for Chief Information Officers and IT executives.
The expansion of AI infrastructure by technology providers has created new demand for specialised data centre systems, particularly AI-optimised servers. These systems are designed specifically to handle the computational requirements of machine learning and AI workloads.
“In 2024, the surge of building out AI-related infrastructure by technology providers is driving high levels of spending on data centre systems in Europe,” says John-David Lovelock, Distinguished VP Analyst at Gartner.
See also in November
Solar Plus Storage: Revolutionising Nigerian Data Centres
Data Centre Public Opinion is Better with Local Investment
Ark: The Data Centre Industry’s Sustainability Imperative
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