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AI Infrastructure market set for explosive growth

Ana Mary Joseph

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October 31, 2025

AI Infrastructure market set for explosive growth

Hyperscalers, major cloud service providers and digital platforms are industry’s leading spenders
In the second quarter of 2025 alone, spending on compute and storage infrastructure for AI surged by 166% compared to the same period last year, reaching $8b.
IDC forecasts accelerated servers will comprise over 95 per cent of server AI infrastructure spending by 2029.

The global artificial intelligence (AI) infrastructure market is entering an era of unprecedented growth, with spending forecast to soar to $758 billion by 2029, according to the latest data from the International Data Corporation (IDC).

The revelation underscores the accelerating demand for robust computing and storage solutions to support a rapidly expanding set of AI deployments worldwide.

Organisations worldwide are ramping up expenditures on AI-centric hardware. In the second quarter of 2025 alone, spending on compute and storage infrastructure for AI surged by 166 per cent compared to the same period last year, reaching $82 billion.

IDC credits this growth primarily to investments in advanced servers designed for AI workloads, which now represent a foundational element of digital transformation across industries.

Cloud and shared environments remain the heart of current AI infrastructure spending, accounting for 84.1 per cent of total outlays in Q2 2025.

Hyperscalers, major cloud service providers, and digital platforms are the industry’s leading spenders, together representing an overwhelming 86.7 per cent of quarterly investment in AI infrastructure.

Servers play a dominant role in this trend, constituting 98 per cent of overall AI-centric spending—a category that saw a 173.2 per cent year-over-year increase. Servers embedded with hardware accelerators, such as GPUs, have become the preferred choice for AI platforms.

These accelerated servers now make up 91.8 per cent of total server-related AI spending, after growing by more than 207 per cent in the past year. IDC forecasts accelerated servers will comprise over 95 per cent of server AI infrastructure spending by 2029, with a 42 per cent compound annual growth rate (CAGR).

US leads but Asia showing fastest growth

The United States continues to command the lion’s share of global AI infrastructure investment, with 76 per cent of total spending in Q2 2025. China (PRC) is second with an 11.6 per cent share, while Asia-Pacific/Japan (6.9 per cent) and EMEA (4.7 per cent) round out the top regions. Looking ahead, the PRC is projected to grow fastest, posting a 41.5 per cent CAGR through 2029—slightly ahead of the US at 40.5 per cent.

Rising demand for handling massive, complex datasets needed for AI training and inference has also fueled growth in storage investments, which jumped 20.5 per cent year-over-year in Q2 2025. Nearly half of this spending (48 per cent) comes from cloud-based deployments, reflecting the need for scalable, accessible storage in modern AI workflows.

IDC analysts have revised earlier forecasts for a slowdown, pointing instead to an extended period of intense investment—especially for GPU and accelerator-based servers in the US.

“There is a distinct possibility that more AI-related investment will be announced in the coming years that will add to and extend the current mass deployment phase of accelerated servers well into 2026 and even beyond,” said Lidice Fernandez, group vice president, Worldwide Enterprise Infrastructure Trackers at IDC.

Industry experts expect that hyperscalers, major cloud service providers, and research/education sectors will continue to drive rapid adoption of AI infrastructure, ensuring robust support for innovation and digital transformation initiatives well into the next decade.

Strengthening the DSP Network

Central to Amazon’s delivery push is a further $1.9 billion investment in its North America Delivery Service Partner (DSP) program, raising total investment to $S16.7 billion over the past seven years. This initiative supports safety, driver training, and new tech for Amazon’s army of small-business logistics contractors, further improving last-mile efficiency.

The company is on pace to deliver to Prime members at record speed for the third year in a row—including the introduction of three-hour delivery windows in select US cities.

Grocery delivery gets a boost

Amazon’s logistics expansion isn’t limited to parcels. Same-day grocery delivery will reach over 1,000 US cities by year-end, with ambitions to hit 2,300 cities soon after. A recently launched “add-to-delivery” button, used over 80 million times, lets customers bundle last-minute grocery and regular orders—a move Jassy says drives increased customer retention, especially among fresh food buyers.

To support heightened holiday demand and broader coverage, Amazon plans to hire 250,000 US seasonal workers. Meanwhile, fulfillment efficiencies have helped Amazon absorb $4.3 billion in legal and severance charges, maintaining margins even during rapid expansion. The North America segment, which includes much of Amazon’s logistics operations, posted $106.3 billion in sales for the quarter—an 11 per cent year-over-year gain.

AI arms race heats up

Amazon’s rally follows a week of strong cloud results from Microsoft and Google, both of which are also pouring record sums into data centers, chips, and AI research. Meta and Alphabet likewise signaled ongoing AI-fueled investment, with Federal Reserve Chair Jerome Powell noting that today’s AI boom, unlike the dot-com bubble, is driven by profitable, established businesses.

The Seattle-based company’s AI efforts have sometimes been criticised as lagging behind, but recent momentum, particularly at AWS, is helping close that gap. Jassy was upbeat with analysts: “I look at the momentum we have right now, and I believe that we can continue to grow and click like this for a while…in advertising and retail sales as well.”

Amazon’s advertising business remained a bright spot, growing 24 per cent YoY to $17.7 billion, as the company expands sponsored listings and explores new ad spaces such as the Echo Show and smart grocery carts.

However, the company also recorded a $1.8 billion charge related to severance, having cut 14,000 corporate jobs this quarter as part of a broader restructuring. Jassy framed the headcount reduction as a “culture” shift, aiming to reduce layers created during Amazon’s rapid expansion.

Results were further weighed down by a one-time $25 billion charge over a settlement with the Federal Trade Commission regarding Prime membership practices.

Looking forward

Despite workforce reductions and regulatory costs, Amazon’s focus on cloud, AI, and advertising is positioning it for continued growth.

With AWS accounting for around 60 per cent of total operating income on just over 15 per cent of total revenue, the unit’s performance remains central to Amazon’s valuation story as the company eyes further gains in the pivotal holiday quarter.

Robotics industry set for explosive growth as innovation accelerates

Mohammed Fahad

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October 31, 2025

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Robotics industry set for explosive growth as innovation accelerates

Key to the explosive growth is the integration of AI and cloud computing, which are fundamentally transforming how robots learn, adapt, and interact.
Advances like neuromorphic processors, emulating the human brain, promise a future generation of robots that are both highly dexterous and intelligent.
All signs point to a future where robots are not only more capable but also more ingrained in daily life—reshaping everything from work to home and challenging society to imagine new possibilities.

The global robotics industry is charging into a new era of expansion and innovation, with market forecasts predicting a surge from $90.2 billion in 2024 to a staggering $205.5 billion by 2030, according to GlobalData’s report.

The 15 per cent compound annual growth rate (CAGR) reflects the sector’s expanding influence across industries—from manufacturing to consumer services and healthcare.

Exoskeletons and drones lead the pack

One of the sector’s standout stories is the meteoric rise of exoskeletons. Although still a nascent segment at just $$0.6 million in 2024, exoskeletons are expected to grow at a remarkable 38 per cent CAGR through to 2030, driven by progress in rehabilitation, workforce support, and mobility solutions.

Drones are flying high as the second-fastest-growing segment (19 per cent CAGR), followed closely by logistics robots (18 per cent CAGR), both reflecting rapidly expanding commercial and industrial use cases.

Service robotics outpaces industrial counterparts

While industrial robots, long the industry backbone, will advance at a steady 7 per cent CAGR—growing from $24.6 billion to $36.7 billion by 2030—they’re now outshone by the broader service robot market.

Service robotics, already worth $65.6 billion in 2024,is set to reach $168.8 billion by 2030 (17 per cent CAGR), underlining increasing adoption in areas like healthcare, hospitality, and consumer robotics.

“With every leap in precision engineering and smart technology, robots are reimagining their role in society—from assisting in factories to supporting in hospitals,” observed Aisha U-K Umaru, Analyst at GlobalData.

Intelligent robotics

Key to this explosive growth is the integration of artificial intelligence (AI) and cloud computing, which are fundamentally transforming how robots learn, adapt, and interact.

Advances like neuromorphic processors, emulating the human brain, promise a future generation of robots that are both highly dexterous and intelligent.

“Robots aren’t just getting more dexterous, they’re also getting smarter,” Umaru noted. “The convergence of physical capability and AI-driven intelligence is unlocking unprecedented value for both workplaces and homes.”

Visionary automakers Tesla and Toyota, alongside startups Figure AI and Fourier Robotics, are at the forefront of developing robots that closely resemble humans—poised to address labor shortages and take on hazardous jobs. Despite the promise, high component costs, questions around utility, and concerns about social acceptance pose hurdles for widespread adoption.

Umaru concluded: “Progress in humanoid robotics is happening at a breathtaking pace. With AI advancing in parallel, the industry must now grapple with two profound questions: When will robots be indistinguishable from humans—and what comes next when they are?”

Samsung bets big on AI memory demand amid record turnaround

Naushad K. Cherrayil

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October 30, 2025

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Samsung bets big on AI memory demand amid record turnaround

Growing customer interest has prompted Samsung to consider further enlarging its production footprint for 2026

After months of trailing competitors in the booming AI chip space, Samsung Electronics delivered a message of bold confidence to investors and the chip industry on Thursday.

Fresh off a record quarter for its memory division, the world’s largest memory chipmaker is retooling its strategy and capital spending to chase runaway demand—particularly in the high-bandwidth memory (HBM) segment that powers the world’s AI infrastructure.

A major pivot

Just a year ago, Samsung’s memory business was posting lacklustre results, squeezed by slow smartphone and PC demand. But data centres and generative AI fever have upended the market equation.

The company’s memory operations notched a record 26.7 trillion won in revenue (up from 22.3 trillion won a year earlier), helping drive an 80 per cent jump in quarterly chip operating profit to 7 trillion won ($4.92 billion). Shares responded, surging as much as 5.3 per cent—strongly outpacing the broader KOSPI index.

Meeting demand—if they can

In a post-earnings call, Samsung memory executive Kim Jaejune set the tone for the company’s next act: “Customers’ demand for [next year] will exceed our supply, even considering our investment and capacity expansion plan.”

He described “much stronger and faster than usual” memory demand, signaling both continued price momentum and the risk of persistent supply constraint—particularly as the entire industry pivots resources to the AI chip surge.

For 2025, Samsung is betting on a “significantly expanded” production of HBM chips—including current-generation HBM3E now being shipped to all major customers, and the next-generation HBM4, for which Samsung has already begun sampling with key clients.

Growing customer interest has prompted Samsung to consider further enlarging its production footprint for 2026.

Samsung’s bullish stance mirrors that of rival SK Hynix, which declared its own HBM inventory fully sold out for next year and predicted an “extended chip super cycle” powered by surging AI infrastructure investment.

Meanwhile, demand for commodity memory—including for mobile and PC applications—remains tight. Kim warned that supply constraints on these traditional segments could persist well into next year, compounding the sector’s focus shift toward premium AI chips.

Industry implications

While giants like OpenAI and other tech titans unveil multi-billion-dollar AI infrastructure projects, questions linger about the sustainability of the AI boom—and whether the current fever will give way to a dramatic cooling period.

Still, for now, both Samsung and its shareholders are relishing the rebound, as the firm makes up for its slower start bringing advanced HBM chips to market, working to close the gap with front-runner SK Hynix.

With HBM4’s mass production on the agenda for next year, and Samsung actively reviewing additional expansion in response to surging orders, industry dynamics in 2026 and beyond are set for another shakeup.

For now, the company’s turnaround story and future roadmap signal that the race for AI memory dominance is far from over—and the stakes are only getting higher.

Jahez and noon to reshape Saudi Arabia’s on-demand commerce landscape

TCN Bureau

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October 30, 2025

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Jahez and noon to reshape Saudi Arabia’s on-demand commerce landscape

Venture brings together noon’s quick-commerce infrastructure and Jahez’s food delivery network of over 50,000 restaurants to offer greater choice and faster delivery across Saudi Arabia.

In a move set to redefine Saudi Arabia’s on-demand economy, Jahez International Company for Information System Technology, a regional leader in digital service platforms, announced a landmark partnership with noon, the Middle East’s top digital player and one of the Kingdom’s fastest-growing quick-commerce innovators.

The alliance unites two powerhouses—each previously dominating distinct corners of the rapidly-expanding e-commerce ecosystem.

Under the arrangement, Saudi users of the Jahez app will soon find a new “noon Minutes” option—unlocking access to noon’s lightning-fast delivery from a vast array of product categories, powered by noon’s formidable network of dark stores across major cities.

Meanwhile, noon’s millions of Saudi customers will gain instant access to Jahez’s renowned food delivery service. With more than 50,000 restaurants in over 100 cities, the Jahez network will now be embedded within the noon app, as Jahez takes on all logistical and operational aspects for food orders.

A win for both companies

For Jahez, this strategic partnership is a game changer: it allows the Group to expand beyond its established food delivery domain and penetrate Saudi Arabia’s quick-commerce sector, all while leveraging noon’s infrastructure and maintaining capital efficiency.

No less significant, noon’s food delivery portfolio instantly gains depth and reach—broadening options for its users and enabling rapid operational expansion across the Kingdom.

From a customer perspective, the value proposition is clear. The integration of offerings means greater choice, faster fulfillment, and an upgraded experience—regardless of which platform a consumer prefers.

Notably, loyalty program members (Jahez Prime and noon One subscribers) will see their perks extended across both ecosystems, including free delivery.

Vision and synergy

Ghassab Bin Mandeel, CEO of Jahez, sees the partnership as an inflection point.

“Our partnership with noon represents a pivotal step in Jahez’s evolution beyond food delivery, reinforcing our vision to enhance our customers’ lifestyle and connecting us with an even broader community of users across Saudi Arabia. By combining noon’s extensive quick commerce capabilities with Jahez’s strong food delivery network, we are creating a unified ecosystem that delivers greater value, convenience, and selection to customers.”

“We’re proud to partner with Jahez, a much-loved and respected Saudi company that shares our values of speed, quality, and trust. By integrating their food delivery network into the noon app, and bringing noon Minutes to the Jahez platform, we’re building something bigger together—a faster, stronger, and more connected commerce network for the Kingdom,” Faraz Kahlid, CEO of noon, said.

Rollout timeline

Availability will roll out in two major phases:

November 2025: “noon Minutes” debuts within the Jahez app.
December 2025: Jahez food delivery launches inside the noon app.

For investors and analysts, this partnership not only signals deepening digital infrastructure and cross-platform synergy in Saudi Arabia, but also points to heightened competition and innovation in the Kingdom’s on-demand commerce sector.

Both companies stand poised to capture a larger share of the addressable market, drive higher engagement, and reinforce brand loyalty at scale—all while maintaining their independent operations and service standards.