White Box Server Market Size

Global White Box Server Market size was valued at USD 16.06 billion in 2023 and is poised to grow from USD 18.66 billion in 2024 to USD 62.03 billion by 2032, growing at a CAGR of 16.2% during the forecast period (2025-2032). 

Growing demand from SMEs for low-cost, highly customized servers is among the primary drivers for the global white box server market growth. White box servers, which are nameless and most often custom-designed servers, have an excellent level of cost-efficiency and customization that suits most categories of businesses, particularly cloud computing and data center companies.

Furthermore, growing trends towards hyper-converged infrastructure (HCI) are also boosting the white box server demand. HCI consolidates computing, storage, and networking into a single system, simplifying data center management and reducing costs. White box servers are also well-suited for HCI deployments due to their flexibility and compatibility with the majority of software-defined solutions. Flexibility allows organizations to build robust, scalable infrastructures that rapidly adapt to keep pace with shifting technological requirements. Edge computing is another major driver. As there are more devices tapping into the internet of things (IoT) and producing vast amounts of data, decentralized processing capacity closer to the point of origin is in greater demand. White box servers are used in such deployments. They give the necessary processing capacity and storage capacity while remaining cost-effective and scalable.

How AI-Driven Automation is Revolutionizing White Box Servers?

The white box server market is being transformed by artificial intelligence (AI) through workload optimization, predictive maintenance, and increased automation. AI-driven analytics enhance server performance, minimize downtime, and optimize the utilization of data center resources. White box servers are desirable for AI-based workloads in cloud computing and hyperscale data centers due to their ability to optimize efficiency with AI-driven cooling and power management solutions.

• For instance, in March 2024, Supermicro launched AI-optimized white box servers with the latest NVIDIA GPUs for high-performance computing and deep learning applications. These servers provide enhanced AI acceleration, power efficiency, and scalability for companies that use AI workloads in cloud environments.

Which Startups are Transforming White Box Servers?

White box server sales are also witnessing exponential innovation as cloud computing and data center services become the focus for entrepreneurs that create the benchmark for flexible, cost-effective data centers and cloud solutions. They concentrate on decentralized infrastructure, AI-optimized systems, and high security in order to serve shifting corporate and telecommunication requirements. The global white box server industry is transforming with their innovations.

• DriveNets: With its cloud-native networking software, DriveNets, a 2015-founded Israeli company is revolutionizing the white box server market. DriveNets makes it possible for service providers to construct flexible and cost-effective networks with white box servers by decoupling hardware and software. Its disaggregated Network Cloud technology gives service providers greater network agility at significantly lower operating expenses. Top telecom operators and hyperscalers have adopted DriveNets' technology to enable scalability, optimization of performance, and a network architecture paradigm shift through lowering the dependence on proprietary hardware.