- AI market could hit $990B by 2027
- Data centers grow massively to meet demand
- Governments invest in sovereign AI capabilities
Bain & Co predicts massive growth
The AI-related hardware and software market is poised for explosive growth. Bain & Company’s latest report forecasts annual growth rates between 40% and 55%, potentially reaching $990 billion by 2027.
This surge stems from three key areas: larger models and data centers, enterprise and sovereign AI initiatives, and enhanced software capabilities.
Data centers bulk up for AI
AI’s voracious appetite for computing power is driving a radical expansion of data centers. These facilities could grow from today’s 50-200 megawatts to over a gigawatt in the next 5-10 years. This expansion may strain supply chains, potentially triggering another semiconductor shortage.
Sovereign AI gains traction
Governments worldwide are investing heavily in domestic AI infrastructure. This trend towards “sovereign AI” adds complexity for tech companies but also creates new opportunities.
Success in this arena will depend on factors beyond securing local subsidies, including the ability to establish robust AI ecosystems.
