Growth Factors of data center chip Market
The global data center chip market is experiencing steady expansion, driven by the rapid growth of cloud computing, artificial intelligence (AI), machine learning (ML), and data-intensive digital services. According to the 2024 report, the global data center chip market size was valued at USD 12.75 billion in 2024, reflecting strong demand for high-performance semiconductor solutions that support modern data center workloads. These chips form the backbone of data center operations, enabling large-scale computing, storage, and networking across industries.
In 2025, the market is projected to reach USD 13.65 billion, supported by increasing investments in hyperscale data centers, rising enterprise digital transformation initiatives, and growing deployment of AI-driven applications. Data center chips, including CPUs, GPUs, ASICs, and FPGAs, play a critical role in optimizing performance, scalability, and energy efficiency, which are essential requirements for next-generation data infrastructure.
By 2032, the global data center chip market value is expected to expand further to USD 22.53 billion, indicating sustained adoption of advanced semiconductor architectures and acceleration of compute-intensive workloads worldwide.
Market Definition and Functional Importance
A data center chip is a specialized semiconductor component designed to manage high-volume computation, parallel processing, data storage, and networking tasks within data center servers. These chips are engineered to handle workloads such as cloud services, big data analytics, AI model training, real-time inference, and enterprise applications. Their ability to deliver high throughput, low latency, and improved power efficiency makes them indispensable to modern data centers.
As digital traffic continues to grow and enterprises increasingly rely on data-driven decision-making, demand for robust and scalable chip architectures continues to rise across both public and private data center environments.
Impact of Generative AI on Market Growth
Generative AI has emerged as a transformative force in the data center chip market. Advanced AI models, including large language models (LLMs), require massive computational resources and memory bandwidth. This has intensified demand for high-performance GPUs and AI accelerators specifically optimized for AI training and inference tasks.
Leading semiconductor companies are actively developing next-generation chips to meet these requirements, prompting data centers to upgrade their infrastructure. The increasing deployment of generative AI applications-such as real-time language processing, image generation, and predictive analytics-has significantly increased chip utilization rates, reinforcing long-term market expansion.
Key Market Trends
One of the most prominent trends shaping the market is the surge in AI and ML workloads. Traditional CPUs alone are no longer sufficient to support parallel processing demands, leading to higher adoption of GPUs, TPUs, and custom accelerators. Additionally, cloud service providers are increasingly investing in custom-designed processors to improve efficiency and reduce dependency on third-party solutions.
Another notable trend is the growing focus on energy-efficient chip design. As data centers account for a substantial share of global electricity consumption, chip manufacturers are prioritizing performance-per-watt improvements to reduce operational costs and environmental impact.
Regional Market Insights
In 2024, North America dominated the global data center chip market with a 36.63% share, supported by advanced digital infrastructure, strong presence of hyperscale cloud providers, and continuous innovation in semiconductor technology. The region accounted for USD 4.61 billion in market value in 2024, highlighting its leadership position.
Europe held the second-largest share, driven by robust IT infrastructure, regulatory emphasis on data security, and expanding data center investments. Meanwhile, the Asia Pacific region is expected to witness the fastest growth through 2032, supported by rapid digitalization, increasing cloud adoption, and large-scale infrastructure investments in countries such as China, Japan, and India.
Competitive Landscape
The market is highly competitive, with leading players focusing on new product launches, AI-optimized chip development, and strategic collaborations. Companies such as Intel, AMD, NVIDIA, Broadcom, Qualcomm, Samsung, and Arm continue to invest heavily in R&D to strengthen their market positioning and address evolving data center requirements.
Conclusion
With a market size of USD 12.75 billion in 2024, a projected value of USD 13.65 billion in 2025, and an expected expansion to USD 22.53 billion by 2032, the data center chip market is set for sustained growth. Increasing AI adoption, cloud expansion, and demand for energy-efficient computing solutions will remain the key forces shaping market evolution throughout the forecast period.
Segmentation By Chip Type
- Central Processing Unit (CPU)
- Graphics Processing Unit (GPU)
- Application-Specific Integrated Circuit (ASIC)
- Field-Programmable Gate Array (FPGA)
- Others (Memory Chips, Storage Chips)
By End-user
- BFSI
- Healthcare
- Retail
- Telecommunications
- Media and Entertainment
- Energy and Utilities
- Others (Government and Defense, Education)
By Data Center Type
- Small and Medium Data Centers
- Large Data Centers
By Region
- North America (By Chip Type, By End-user, By Data Center Type, and By Country)
- U.S. (End-user)
- Canada (End-user)
- Mexico (End-user)
- South America (By Chip Type, By End-user, By Data Center Type, and By Country)
- Brazil (End-user)
- Argentina (End-user)
- Rest of South America
- Europe (By Chip Type, By End-user, By Data Center Type, and By Country)
- U.K. (End-user)
- Germany (End-user)
- France (End-user)
- Italy (End-user)
- Spain (End-user)
- Russia (End-user)
- Benelux (End-user)
- Nordics (End-user)
- Rest of Europe
- Middle East & Africa (By Chip Type, By End-user, By Data Center Type, and By Country)
- Turkey (End-user)
- Israel (End-user)
- GCC (End-user)
- North Africa (End-user)
- South Africa (End-user)
- Rest of the Middle East & Africa
- Asia Pacific (By Chip Type, By End-user, By Data Center Type, and By Country)
- China (End-user)
- India (End-user)
- Japan (End-user)
- South Korea (End-user)
- ASEAN (End-user)
- Oceania (End-user)
- Rest of Asia Pacific
Table of Content
1. Introduction
- 1.1. Definition, By Segment
- 1.2. Research Methodology/Approach
- 1.3. Data Sources
2. Executive Summary
3. Market Dynamics
- 3.1. Macro and Micro Economic Indicators
- 3.2. Drivers, Restraints, Opportunities and Trends
- 3.3. Impact of Generative AI
4. Competition Landscape
- 4.1. Business Strategies Adopted by Key Players
- 4.2. Consolidated SWOT Analysis of Key Players
- 4.3. Global Data Center Chip Key Players (Top 3 - 5) Market Share/Ranking, 2023
5. Global Data Center Chip Market Size Estimates and Forecasts, By Segments, 2019-2032
- 5.1. Key Findings
- 5.2. By Chip Type (USD)
- 5.2.1. Central Processing Unit (CPU)
- 5.2.2. Graphics Processing Unit (GPU)
- 5.2.3. Application-Specific Integrated Circuit (ASIC)
- 5.2.4. Field-Programmable Gate Array (FPGA)
- 5.2.5. Others (Memory Chips, Storage Chips, etc.)
- 5.3. By End-user (USD)
- 5.3.1. BFSI
- 5.3.2. Healthcare
- 5.3.3. Retail
- 5.3.4. Telecommunications
- 5.3.5. Media and Entertainment
- 5.3.6. Energy and Utilities
- 5.3.7. Others (Government and Defense, Education, etc.)
- 5.4. By Data Center Type (USD)
- 5.4.1. Small and Medium Data Centers
- 5.4.2. Large Data Centers
- 5.5. By Region (USD)
- 5.5.1. North America
- 5.5.2. South America
- 5.5.3. Europe
- 5.5.4. Middle East and Africa
- 5.5.5. Asia Pacific
6. North America Data Center Chip Market Size Estimates and Forecasts, By Segments, 2019-2032
- 6.1. Key Findings
- 6.2. By Chip Type (USD)
- 6.2.1. Central Processing Unit (CPU)
- 6.2.2. Graphics Processing Unit (GPU)
- 6.2.3. Application-Specific Integrated Circuit (ASIC)
- 6.2.4. Field-Programmable Gate Array (FPGA)
- 6.2.5. Others (Memory Chips, Storage Chips, etc.)
- 6.3. By End-user (USD)
- 6.3.1. BFSI
- 6.3.2. Healthcare
- 6.3.3. Retail
- 6.3.4. Telecommunications
- 6.3.5. Media and Entertainment
- 6.3.6. Energy and Utilities
- 6.3.7. Others (Government and Defense, Education, etc.)
- 6.4. By Data Center Type (USD)
- 6.4.1. Small and Medium Data Centers
- 6.4.2. Large Data Centers
- 6.5. By Country (USD)
- 6.5.1. United States
- 6.5.2. Canada
- 6.5.3. Mexico
7. South America Data Center Chip Market Size Estimates and Forecasts, By Segments, 2019-2032
- 7.1. Key Findings
- 7.2. By Chip Type (USD)
- 7.2.1. Central Processing Unit (CPU)
- 7.2.2. Graphics Processing Unit (GPU)
- 7.2.3. Application-Specific Integrated Circuit (ASIC)
- 7.2.4. Field-Programmable Gate Array (FPGA)
- 7.2.5. Others (Memory Chips, Storage Chips, etc.)
- 7.3. By End-user (USD)
- 7.3.1. BFSI
- 7.3.2. Healthcare
- 7.3.3. Retail
- 7.3.4. Telecommunications
- 7.3.5. Media and Entertainment
- 7.3.6. Energy and Utilities
- 7.3.7. Others (Government and Defense, Education, etc.)
- 7.4. By Data Center Type (USD)
- 7.4.1. Small and Medium Data Centers
- 7.4.2. Large Data Centers
- 7.5. By Country (USD)
- 7.5.1. Brazil
- 7.5.2. Argentina
- 7.5.3. Rest of South America
8. Europe Data Center Chip Market Size Estimates and Forecasts, By Segments, 2019-2032
- 8.1. Key Findings
- 8.2. By Chip Type (USD)
- 8.2.1. Central Processing Unit (CPU)
- 8.2.2. Graphics Processing Unit (GPU)
- 8.2.3. Application-Specific Integrated Circuit (ASIC)
- 8.2.4. Field-Programmable Gate Array (FPGA)
- 8.2.5. Others (Memory Chips, Storage Chips, etc.)
- 8.3. By End-user (USD)
- 8.3.1. BFSI
- 8.3.2. Healthcare
- 8.3.3. Retail
- 8.3.4. Telecommunications
- 8.3.5. Media and Entertainment
- 8.3.6. Energy and Utilities
- 8.3.7. Others (Government and Defense, Education, etc.)
- 8.4. By Data Center Type (USD)
- 8.4.1. Small and Medium Data Centers
- 8.4.2. Large Data Centers
- 8.5. By Country (USD)
- 8.5.1. United Kingdom
- 8.5.2. Germany
- 8.5.3. France
- 8.5.4. Italy
- 8.5.5. Spain
- 8.5.6. Russia
- 8.5.7. Benelux
- 8.5.8. Nordics
- 8.5.9. Rest of Europe
9. Middle East & Africa Data Center Chip Market Size Estimates and Forecasts, By Segments, 2019-2032
- 9.1. Key Findings
- 9.2. By Chip Type (USD)
- 9.2.1. Central Processing Unit (CPU)
- 9.2.2. Graphics Processing Unit (GPU)
- 9.2.3. Application-Specific Integrated Circuit (ASIC)
- 9.2.4. Field-Programmable Gate Array (FPGA)
- 9.2.5. Others (Memory Chips, Storage Chips, etc.)
- 9.3. By End-user (USD)
- 9.3.1. BFSI
- 9.3.2. Healthcare
- 9.3.3. Retail
- 9.3.4. Telecommunications
- 9.3.5. Media and Entertainment
- 9.3.6. Energy and Utilities
- 9.3.7. Others (Government and Defense, Education, etc.)
- 9.4. By Data Center Type (USD)
- 9.4.1. Small and Medium Data Centers
- 9.4.2. Large Data Centers
- 9.5. By Country (USD)
- 9.5.1. Turkey
- 9.5.2. Israel
- 9.5.3. GCC
- 9.5.4. North Africa
- 9.5.5. South Africa
- 9.5.6. Rest of MEA
10. Asia Pacific Data Center Chip Market Size Estimates and Forecasts, By Segments, 2019-2032
- 10.1. Key Findings
- 10.2. By Chip Type (USD)
- 10.2.1. Central Processing Unit (CPU)
- 10.2.2. Graphics Processing Unit (GPU)
- 10.2.3. Application-Specific Integrated Circuit (ASIC)
- 10.2.4. Field-Programmable Gate Array (FPGA)
- 10.2.5. Others (Memory Chips, Storage Chips, etc.)
- 10.3. By End-user (USD)
- 10.3.1. BFSI
- 10.3.2. Healthcare
- 10.3.3. Retail
- 10.3.4. Telecommunications
- 10.3.5. Media and Entertainment
- 10.3.6. Energy and Utilities
- 10.3.7. Others (Government and Defense, Education, etc.)
- 10.4. By Data Center Type (USD)
- 10.4.1. Small and Medium Data Centers
- 10.4.2. Large Data Centers
- 10.5. By Country (USD)
- 10.5.1. China
- 10.5.2. India
- 10.5.3. Japan
- 10.5.4. South Korea
- 10.5.5. ASEAN
- 10.5.6. Oceania
- 10.5.7. Rest of Asia Pacific
11. Company Profiles for Top 10 Players (Based on data availability in public domain and/or on paid databases)
- 11.1. Intel Corporation
- 11.1.1. Overview
- 11.1.1.1. Key Management
- 11.1.1.2. Headquarters
- 11.1.1.3. Offerings/Business Segments
- 11.1.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.1.2.1. Employee Size
- 11.1.2.2. Past and Current Revenue
- 11.1.2.3. Geographical Share
- 11.1.2.4. Business Segment Share
- 11.1.2.5. Recent Developments
- 11.2. Advanced Micro Devices (AMD)
- 11.2.1. Overview
- 11.2.1.1. Key Management
- 11.2.1.2. Headquarters
- 11.2.1.3. Offerings/Business Segments
- 11.2.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.2.2.1. Employee Size
- 11.2.2.2. Past and Current Revenue
- 11.2.2.3. Geographical Share
- 11.2.2.4. Business Segment Share
- 11.2.2.5. Recent Developments
- 11.3. NVIDIA Corporation
- 11.3.1. Overview
- 11.3.1.1. Key Management
- 11.3.1.2. Headquarters
- 11.3.1.3. Offerings/Business Segments
- 11.3.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.3.2.1. Employee Size
- 11.3.2.2. Past and Current Revenue
- 11.3.2.3. Geographical Share
- 11.3.2.4. Business Segment Share
- 11.3.2.5. Recent Developments
- 11.4. Broadcom Inc.
- 11.4.1. Overview
- 11.4.1.1. Key Management
- 11.4.1.2. Headquarters
- 11.4.1.3. Offerings/Business Segments
- 11.4.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.4.2.1. Employee Size
- 11.4.2.2. Past and Current Revenue
- 11.4.2.3. Geographical Share
- 11.4.2.4. Business Segment Share
- 11.4.2.5. Recent Developments
- 11.5. Qualcomm Technologies, Inc.
- 11.5.1. Overview
- 11.5.1.1. Key Management
- 11.5.1.2. Headquarters
- 11.5.1.3. Offerings/Business Segments
- 11.5.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.5.2.1. Employee Size
- 11.5.2.2. Past and Current Revenue
- 11.5.2.3. Geographical Share
- 11.5.2.4. Business Segment Share
- 11.5.2.5. Recent Developments
- 11.6. Micron Technology, Inc.
- 11.6.1. Overview
- 11.6.1.1. Key Management
- 11.6.1.2. Headquarters
- 11.6.1.3. Offerings/Business Segments
- 11.6.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.6.2.1. Employee Size
- 11.6.2.2. Past and Current Revenue
- 11.6.2.3. Geographical Share
- 11.6.2.4. Business Segment Share
- 11.6.2.5. Recent Developments
- 11.7. Samsung
- 11.7.1. Overview
- 11.7.1.1. Key Management
- 11.7.1.2. Headquarters
- 11.7.1.3. Offerings/Business Segments
- 11.7.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.7.2.1. Employee Size
- 11.7.2.2. Past and Current Revenue
- 11.7.2.3. Geographical Share
- 11.7.2.4. Business Segment Share
- 11.7.2.5. Recent Developments
- 11.8. Marvell Technology Group Ltd.
- 11.8.1. Overview
- 11.8.1.1. Key Management
- 11.8.1.2. Headquarters
- 11.8.1.3. Offerings/Business Segments
- 11.8.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.8.2.1. Employee Size
- 11.8.2.2. Past and Current Revenue
- 11.8.2.3. Geographical Share
- 11.8.2.4. Business Segment Share
- 11.8.2.5. Recent Developments
- 11.9. Huawei Technologies Co. Ltd.
- 11.9.1. Overview
- 11.9.1.1. Key Management
- 11.9.1.2. Headquarters
- 11.9.1.3. Offerings/Business Segments
- 11.9.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.9.2.1. Employee Size
- 11.9.2.2. Past and Current Revenue
- 11.9.2.3. Geographical Share
- 11.9.2.4. Business Segment Share
- 11.9.2.5. Recent Developments
- 11.10. Cisco Systems, Inc.
- 11.10.1. Overview
- 11.10.1.1. Key Management
- 11.10.1.2. Headquarters
- 11.10.1.3. Offerings/Business Segments
- 11.10.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.10.2.1. Employee Size
- 11.10.2.2. Past and Current Revenue
- 11.10.2.3. Geographical Share
- 11.10.2.4. Business Segment Share
- 11.10.2.5. Recent Developments
12. Key Takeaways