Data Center Chip Market
Report ID: SQMIG45C2093
Report ID: SQMIG45C2093
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Report ID:
SQMIG45C2093 |
Region:
Global |
Published Date: January, 2025
Pages:
195
|Tables:
90
|Figures:
71
Global Data Center Chip Market size was valued at USD 163.28 Billion in 2024 and is poised to grow from USD 186.3 Billion in 2025 to USD 535.18 Billion by 2033, growing at a CAGR of 14.1% during the forecast period (2026–2033).
The increasing requirements of artificial intelligence (AI), machine learning (ML), and the cloud are now boosting the data center chip market. Any business that engages in AI or ML technologies must invest in even stronger and more effective datacenter chips that can handle workloads with high data input. Other trends in the data center chip market are those relating to cloud-based services. IT infrastructure is being moved to the cloud by organizations to reduce expenses and increase flexibility. The need for data center chips that can manage the high-performance computing and data processing requirements of cloud-based applications is therefore growing. Additionally, the datacenter chip market has seen a growing adoption of AI and ML.
Such technology would allow predicted learning of an efficient data center chip by interpreting and utilizing present information. With these developments, the applications of machine learning and artificial intelligence are expected to grow manifold into the future. The demand for data centers has skyrocketed due to data generation and consumption. Businesses and organizations want more robust and effective data centers as more data is generated. One of the most recent trends is the increase in the quantity of chips utilized in data centers. The use of cloud computing and big data analytics, which are gaining popularity among people all over the world, is one of the factors propelling this trend.
Market snapshot - 2026-2033
Global Market Size
USD 143.1 billion
Largest Segment
Non-AI Server
Fastest Growth
AI Server
Growth Rate
14.1% CAGR
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Global Data Center Chip Market is segmented by Component, Chip Type, Process Nodes, Application, Data Center Size, End User Industry and region. Based on Component, the market is segmented into Processors, Memory, Network, Sensors, Power Management and Analog & Mixed-Signal ICs. Based on Chip Type, the market is segmented into Central Processing Units (CPUs), Graphics Processing Units (GPUs), Application-Specific Integrated Circuits (ASICs), Networking Accelerators / Data Processing Units (DPUs) / SmartNICs, Memory Chips and Other Specialized Chips. Based on Process Nodes, the market is segmented into Legacy Nodes and Advanced Nodes. Based on Application, the market is segmented into Cloud Computing, Artificial Intelligence (AI) & Machine Learning (ML), Big Data Analytics, High-Performance Computing (HPC) / Scientific Computing, Database Management, Storage & Data Management, Networking & Security, Content Delivery and Streaming, Edge Computing and Gaming & Media. Based on Data Center Size, the market is segmented into Hyperscale Data Centers, Large Data Centers and Small & Medium Data Centers. Based on End User Industry, the market is segmented into IT & Telecommunications, BFSI (Banking, Financial Services, and Insurance), Government & Defense, Retail & E-commerce, Healthcare & Life Sciences, Manufacturing, Media & Entertainment, Energy & Utilities, Automotive and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per categorization by material, the market is classified as AI server and non-AI server. Among these, non-AI servers earned the largest share and continue to hold the dominant global data center chip market share. Non-AI servers completely conquer the global data center chip market with their effective pricing, reliability, and versatility in general-purpose computing. Innovations in these servers aim at enhancing processing power, energy-power flexible scalability to accommodate the huge dealing with traffic. These servers run excellent in a broad range of applications-from cloud computing, storing, to enterprise workloads, making them indispensable in most data centers, especially industries that focus on better performance and lower operating costs instead of specific AI processing.
AI servers are poised to be the fastest-growing segment in the global data center chip market due to the rapid expansion of AI-driven applications and the increasing demand for high-performance computing. Such servers are tailor-made for machine learning, deep learning, and huge data analytics types of applications that require special chips like GPU or TPU for the augmented processing powers. Industries such as healthcare, finance, and retail are making their moves into AI-adoption automation, analytics, and decision-making, increasing the demand for such an integrated AI infrastructure. Due to this and the increasing emphasis on combining research and investment into AI, AI servers will become popular enough to require a place in data centers.
Machine learning (ML) is driving significant innovation in the global data center chip market by enhancing data processing capabilities and optimizing resource allocation. The application of machine learning algorithms in chips of data centers is ever-increasing. This is mostly to enhance functions such as predictive maintenance, workload balancing, and energy efficiency. Such chips-attached GPUs or TPUs-are primarily optimized to ingest massive volumes of data to learn complex models. The more extensive ML applications are now being pushed in almost all industries; healthcare, finance, and autonomous driving applications have all started using chips, growing in demand. This would cascade to future growth in data centers when innovation would completely explode as a result of ML.
Generative AI is set to become the fastest-growing segment in the global data center chip market due to its increasing adoption across industries for creating content, enhancing data analysis, and automating decision-making processes. These new age AI models consume a lot of computational power, generating demands for chips that handle complex generative tasks through their special architecture, such as GPUs or TPUs. For business applications focused on experimentation with generative AI in content creation, design, or personalized marketing, the need for performing chips will be multiplied, firmly establishing generative AI among the key growth engines for the data center chip market.
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North America dominates the global data center chip market due to its strong technological infrastructure, high levels of innovation, and the presence of major industry players like Intel, NVIDIA, and AMD. The requirement for high-end data center chips is pushed by the strong demand of the continents for cloud services, data processing, and AI-enabled applications. Another thing is that North America is a nest for data center and tech companies investing massively in next-generation infrastructure. Government initiatives along with heavy funding for AI, machine learning, and big data analytics thus further push growth to cement North America in its position as a global leader in data center chip markets.
Asia Pacific is the fastest-growing region due to rapid digital transformation, increasing internet penetration, and significant investments in cloud infrastructure. Currently, this region houses the biggest tech firms and data center operators in the countries such as China, Japan, and India, where demand for data processing, AI technology, and cloud services is rising rapidly. Emerging e-commerce, manufacturing and fintech within the Asia Pacific are also acting as catalysts for more progressive data center chips. Also, various government initiatives towards smart cities, 5G, and digital economies take the region a step further, making it one of the most important contributors to the data center chip market.
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Increase in Big Data Analytics
Expansion of 5G Networks
High Energy Consumption
Supply Chain Disruptions
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The global data center chip market is highly competitive, with key players striving to innovate and enhance chip performance for cloud computing, AI, and big data applications. Capitalizing on these developments, chip manufacturing moguls such as Intel, NVIDIA, AMD, and Qualcomm will remain steadfast in orienting their already high-performance chips to the data center. While continuing developing advanced technologies-as progress on GPUs, CPUs, and TPUs will have their respective applications-this will all be part of a continuing strategy to respond to a potentially growing demand for processing power requirements and energy efficiency.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, advancements in artificial intelligence, machine learning, cloud computing and big data analytics propel the global data center chip industry into high-speed growth. As businesses grow in data generation, the demand for performance-oriented chips to support the technologies keeps rising.
In addition, the increasing usage of cloud-based services and applications powered by AI also drives the market for specialized chips. Emerging shifts in regions such as the growth of North America and the explosive growth of Asia Pacific underscore the continuing modernization and digital transformation throughout industrial sectors. Despite the challenges posed by the energy budget and an enormous supply chain disruption, innovation and a growing rate of adoption of AI and cloud technologies will support the future of this market.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 163.28 Billion |
| Market size value in 2033 | USD 535.18 Billion |
| Growth Rate | 14.1% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Data Center Chip Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Chip Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Chip Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Chip Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
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Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
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