A report by Dell’Oro Group found worldwide data centre IT semiconductor and component revenue for servers and storage systems surged 182% in Q2 2026, driven by rising memory prices and continued AI infrastructure investment.

DRAM and storage drive revenue grew at a triple-digit pace, as average selling prices per bit more than doubled year-over-year while continued AI infrastructure investment fuelled broad-based demand across accelerators and complementary server and storage components.

“Data centre component growth accelerated sharply in the second quarter, driven by higher memory and storage prices and continued growth in server demand,” stated Baron Fung, VP of research at Dell’Oro.

He also said Nvidia’s Blackwell platform and custom accelerators from Google and Amazon continued to gain momentum.

Fung added agentic AI is emerging as a meaningful growth driver for general-purpose servers, broadening component demand beyond accelerated computing hardware.

Going forward, Fung stated Dell’Oro expects component revenue growth to maintain momentum through the remainder of 2026, supported by elevated component prices and strong AI infrastructure investment, though supply constraints could limit hyperscaler capital expenditure plans.

The report found accelerated server deployments drove strong demand for complementary components, including high-bandwidth memory (HBM), CPUs, memory and high-speed back-end network interface cards.

General-purpose server demand remained strong across cloud service providers, supported by continued infrastructure expansion alongside emerging agentic AI workloads.

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Accenture and Google Cloud expanded their long-standing partnership with the launch of a global joint initiative aimed at helping enterprise customers deploy and scale agentic AI tools and platforms.

The two companies formed the Accenture Gemini Enterprise Business Group, a new unit operating within the existing Accenture Google Business Group, designed to help customers deploy Google Cloud’s agentic AI platform.

It will integrate Accenture’s certified Gemini Enterprise talent with dedicated Google Cloud engineering resources to assist clients in moving AI projects from experimental phases into commercial production.

As part of the rollout, the partners plan to establish a 1,000-person workforce of forward deployed engineers (FDEs) to work with clients on-site to plan and build AI applications based on the Gemini Enterprise platform.

The new unit will use Accenture’s existing foundation of nearly 50,000 Google Cloud-skilled personnel to build repeatable industry solutions, speed up time-to-value, and create specialised capability centres for enterprise-wide integration.

The Accenture and Google Cloud initiative targets accelerating enterprise demand for agentic AI architectures, which rely on autonomous digital agents to automate complex, multi-step workflows.

Julie Sweet, chair and CEO of Accenture, stated the business group aims to unite advanced AI capabilities, data assets, and industry expertise to help corporate clients achieve productivity and growth targets faster.

Google Cloud CEO Thomas Kurian noted deploying agentic AI has quickly become a primary priority for enterprise technology buyers aiming for operational transformation.

FDE trend
The move mirrors a growing pattern across the tech landscape as vendors deploy specialised engineering talent directly to client sites. OpenAI recently established a $10 billion joint venture with institutional investors to finance dedicated enterprise deployment teams, while Anthropic investors backed a $1.5 billion standalone venture to build hands-on FDE capabilities for corporate deployments.

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AT&T Business and Amazon Leo reached a deal to bring satellite broadband to enterprise and public sector customers, with the company becoming the first major US operator to employ the low Earth orbit (LEO) network in a bundled set-up including fibre and 5G.

The operator plans to offer the connectivity as a fully managed service on top of its existing terrestrial networks. Customers would get one bill, one point of contact and round-the-clock customer service.

AT&T is to provide the equipment to connect to the satellites.

Shawn Hakl, AT&T Business SVP and head of product, said enterprise and public sector customers need a platform which delivers reliable connectivity across fibre, 5G and satellite in a single managed architecture.

Chris Weber, VP of Amazon Leo Business and Product, said the satellite network adds resilience to the network.

AT&T stated the companies are “moving through a structured, phased deployment designed to ensure business-grade reliability before broad availability”.

It plans to issue pricing and configuration details in the coming months.

The explosion of a Blue Origin New Glenn rocket in May could put the timeline for the launch of the AT&T Business closer to 2027: the rocket company is repairing damage to a launchpad and aims to restore operations by the end of the year.

Amazon Leo is simultaneously pushing into direct-to-device (D2D) connectivity, seeking regulatory approval to deploy up to 5,105 satellites, with deployment scheduled to begin in 2028.

All three major US operators are involved in various D2D moves through deals with Amazon Leo, SpaceX and AST SpaceMobile, along with collaborating to close coverage gaps.

AT&T Business is bidding to differentiate by bundling the connectivity option.

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The US Federal Communications Commission (FCC) will vote later this month on two items intended to free up spectrum for next-generation connectivity, according to chair Brendan Carr (pictured).

The first is a satellite spectrum abundance order, which would allow the FCC to unlock more than 1,000 MHz of spectrum across the 12GHz and 42GHz bands. The FCC stated the freed-up airwaves could support a range of connectivity services, including faster satellite broadband.

The second item is a proposal to seek comment on modernising the FCC’s rules governing ultra-wideband (UWB) technology, an unlicensed spectrum category used across IoT, automotive and consumer devices. Carr noted the rules have not been comprehensively updated since their adoption in 2002.

“The FCC’s work to free up more spectrum continues apace this month,” Carr said. “Today, I shared two items with my colleagues that will push more commercial spectrum into the marketplace than ever before. By unlocking these bands, the FCC will give a big boost to American innovation and promote economic growth across a wide range of industries.”

On the satellite order, Carr said the move is designed to ensure consumers continue benefiting from competitive, high-speed internet delivered from next-generation satellite systems.

On the UWB proposal, he said the rule changes would unlock further opportunities for unlicensed devices across a wide swath of spectrum, pointing to UWB’s role in applications from vehicle safety systems to package tracking.

He stated the technology is so deeply embedded in everyday life that most people are unaware of its role, and that the proposal represents the FCC’s first comprehensive modernisation of the rules in over two decades.

Both items are scheduled for a vote at the FCC’s 30 September open meeting. The satellite spectrum move comes as regulators globally weigh how to balance growing demand for satellite broadband capacity, driven by operators including Amazon Leo, SpaceX’s Starlink and others, against existing terrestrial and federal spectrum users. The 12GHz band in particular has been the subject of a long-running dispute between satellite operators and terrestrial 5G proponents over interference risks and competing use cases.

The meeting items build on Carr’s broader push to release more spectrum since taking the chair, which has included restarting the agency’s first spectrum auction in four years. Auction 113, covering AWS-3 licences in the 1695-1710MHz, 1755-1780MHz and 2155-2180MHz bands, forms part of the FCC’s Build America Agenda, targeting 800MHz of new spectrum by 2034.

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Qualcomm struck a deal with Amazon to develop customised silicon for large-scale AI data centre infrastructure, while issuing a warrant to the technology giant to acquire a stake worth up to $4 billion in the chipmaker.

The move marks Qualcomm’s latest strategic expansion into the data centre sector, building on its recent moves to establish an AI-native foundation, acquire AI software specialist Modular, and advance its agentic AI ambitions beyond edge devices.

Under regulatory filings tied to the deal, the agreement is linked to up to $60 billion in potential commercial transactions.

As part of the arrangement, Qualcomm issued Amazon a warrant to acquire up to 25 million shares at $161.26 apiece, representing a potential $4 billion stake which vests across tranches tied to purchase milestones.

The operational partnership centres on creating tailored processors optimised for AI inference workloads across Amazon Web Service (AWS) data centres.

By combining Qualcomm’s experience in power-efficient compute design with AWS’ global cloud footprint, the companies aim to tackle the skyrocketing energy and compute demands driven by generative AI applications.

Alongside customised processing chips, the agreement encompasses high-performance optical connectivity technologies.

Qualcomm plans to supply optical digital signal processor and serialiser/deserialiser products capable of supporting speeds up to 1.6 Tb/s.

The high-bandwidth interconnects are designed to clear data bottlenecks within data centre networks, allowing large clusters of AI chips to communicate with minimal latency.

Both ways
The collaboration works both ways, as Qualcomm also plans to deepen its internal adoption of AWS infrastructure.

The chipmaker will use cloud-based AI tools, including Amazon Bedrock, to run electronic design automation workloads aimed at accelerating its own chip development cycles.

Qualcomm CEO Cristiano Amon highlighted the rapidly accelerating demand for AI requires foundational advances across both processing and network interconnects to maximise operational efficiency.

AWS VP Prasad Kalyanaraman added the co-development effort will deliver more performant and cost-effective infrastructure for cloud customers globally.

The deal marks a significant expansion for Qualcomm, which has spent recent years diversifying its revenue beyond smartphones into personal computers, automotive systems and now cloud-scale hardware.

For AWS, working directly with Qualcomm on specialised silicon offers another avenue to manage the high-power consumption and soaring costs associated with operating global AI services.

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Verizon and Corning agreed a multi-billion dollar fibre supply deal covering more than 80 million miles of high-density optical fibre and connectivity products, running from 2027 to 2032.

The companies stated the agreement is designed to support surging demand for consumer broadband and converged services, alongside growing infrastructure needs from AI hyperscalers.

Verizon Business CEO Kyle Malady noted securing fibre at this scale allows the operator to build “the network of the future” at an unprecedented level, combining mobile connectivity and broadband into a single, converged architecture.

He said the deployment will also underpin the high-capacity, low-latency backbone required by AI hyperscalers.

The fibre supply is intended to accelerate Verizon’s progress toward a medium-term goal of 40 million to 50 million broadband passings, expanding fibre-to-the-home and business connectivity.

The operator stated the approach means cell towers, enterprise data centres and residential neighbourhoods will connect to the same high-capacity backbone.

Verizon framed the deal as central to its AI Connect strategy, which involves deploying dense fibre cabling across major long-haul corridors to directly connect data centres.

It said the approach positions it as an infrastructure partner for major AI hyperscalers, including Amazon Web Services, while also extending AI-related connectivity benefits to consumers, businesses, schools and communities.

The agreement builds on a three-decade partnership between Verizon and Corning. It is structured to let Corning continue expanding its US manufacturing capacity to supply the physical materials needed for Verizon’s buildout.

Corning Optical Communications SVP and GM Mike O’Day added the expanded partnership will help link AI data centres while also extending high-speed fibre access to homes.

US fibre
Corning also counts AT&T as a customer, having struck a $1 billion, multi-year fibre supply deal with the operator in October 2024 to support AT&T’s Gigapower fibre joint venture and broader broadband expansion plans.

The Corning agreement adds to a series of moves by Verizon to expand its fibre footprint. In July, Bain Capital and Tillman Global Holdings invested $1.5 billion in Eaton Fiber, Verizon’s exclusive wholesale fibre-building partner, to fund an acquisition of Ripple Fiber and accelerate network expansion to more than a million locations outside Verizon’s existing footprint.

Verizon CEO Dan Schulman has described that wholesale partnership model as a capital-efficient way to extend its fibre broadband reach.

Verizon, AT&T and T-Mobile US are actively beefing up their fibre holdings through joint ventures, wholesale agreements and outright purchases of fibre-rich companies to support the convergence of mobile and fibre-based broadband services.

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