AI Server Market Size, Share and Trends 2025 to 2034

AI Server Market Size and Forecast 2025 to 2034

The global AI server market size is predicted to reach around USD 352.28 billion by 2034 increasing from USD 30.74 billion in 2024, with a CAGR of 27.62% from 2025 to 2034. The increased demand for AI applications, improvements in the technology of AI, the evolution of cloud and edge computing, and big data analysis together with cost-efficient solutions have led to extensive use of AI servers leading to a rising market.

AI Server Market Key Takeaways

• North America dominated the global market with the largest market share of 36% in 2024.
• Asia Pacific is expected to grow at the fastest CAGR during the forecast period.
• By servers, the AI training server segment contributed the highest market share in 2024.
• By hardware, the GPU segment captured the biggest market share in 2024.
• By hardware, the ASIC segment is expected to grow at a notable CAGR during the forecast period.
• By end-user, the IT and telecom segment generated the major market share in 2024.

U.S. AI Server Market Size and Growth 2025 to 2034

The U.S. AI server market size was evaluated at USD 7.75 billion in 2024 and is expected to be worth around USD 90.65 billion by 2034, growing at a CAGR of 27.88% from 2025 to 2034.

North America dominated the global AI server market in 2024. North America has resilience in IT infrastructure and makes a huge investment in cloud solutions that are suitable for the installation of AI servers. The growth of a strong financial segment and a heavily IT-enabled healthcare segment also depends on the need for AI servers because such fields entail large data handling and significant computational abilities needed to process enormous amounts of data.

The North American AI server market includes the leading organizations operating in the industry, focusing on the development of new and innovative products and the implementation of efficient and modern technologies in their supply chain. Market leaders are more concerned with the sustainability, quality, and customer solutions.

• In May 2023, American multinational front-runners Oracle and Microsoft worked to lease servers from each other if they were unable to accommodate other large-scale ‘AI’ cloud consumers.

Asia Pacific is expected to grow at the fastest rate in the AI server market during the forecast period. Asia Pacific announced huge investments in developing technology structures and artificial intelligence. The public sector acts as an enabler through digitalization and AI readiness across industries such as retail and e-commerce, automotive, and manufacturing industries. Many industries require AI servers for the processing and analysis of vast amounts of data collected by these industries. The spending on IT systems has been rising, and there is a high increase in the percentage that goes to the cloud. The analysis shows that China, Japan, and India are significant players in remodeling AI servers.

• In August 2024, Moonshot, a Chinese generative AI startup, raised USD 300 million in a new funding round led by Tencent Holdings. This move mirrors the approach of Tencent's competitor, Alibaba, in supporting and encouraging ventures in the competitive AI sector.

Market Overview

AI servers are unique computing technologies that are specifically developed to meet the requirements of artificial intelligence applications. The AI servers are designed for high compute requirements as typical for AI applications. As opposed to conventional servers, AI servers are designed to contain powerful components including graphic processing units to handle encouraging volume and density of data as well as intricate scientific computations. This optimization allows us to address different tasks related to AI, such as machine learning, deep learning, and training neural networks.

The progress in AI server demand is compelled by advancements in hardware technologies, with specialized accelerators like GPUs, TPUs, and FPGAs improving performance and accelerating AI workloads. The market of Artificial Intelligence server shipment across the globe is improving, and this is due to the growing adoption of Artificial Intelligence resources in various sectors. The AI server market is expected to considerably expand in the upcoming years, mainly because the need for AI grows in multiple sectors such as medicine, automobiles, and banking. There is a growing demand for computing efficiency in AI workloads like machine learning model training and handling of massive data.

AI Server Market Growth Factor

• Advancements in hardware: Processers, including GPU and TPU, boost details of AI ventures, thus increasing the servers’ performance. ASICs target the AI industry individually, with server architecture made specifically to respond to AI loads independently while power, speed, and efficiency are improved.
• Increasing investment in AI research and development: Because of social implementations and governments and private companies are participating in this field more investments are being made to research AI and this increases the demand for efficient servers.
• Increased demand for AI applications: Industries like healthcare services, finance, automotive, and retail have seen a drastic increase in the requirement for high-performance computing systems to support the relevant AI workload.

Market Scope

Market Dynamics

Driver

Demand for high-speed data processing

The demand for speed in data processing is a clear imperative leading to AI server market growth. With real-time applications and analytics, machine learning, and deep learning, businesses can obtain meaningful insights and make decisions swiftly, but more specifically, they require high-performance servers with specialized graphic processing units and tensor processing units for timely data processing. Due to the boosted speed in memory and parallel processing, these computers have faster modes of storage, accessibility, and data analysis. AI servers efficiently manage large amounts of data, making them ideal for businesses that depend on data-driven insights. Their high-speed memory and advanced processing capabilities ensure that data can be stored, accessed, and analyzed quickly and accurately.

Restraint

Lack of skilled workforce

The key factor that inhibits the growth of the AI server market is there is a limited skilled workforce to help support the growing demand for IT services. The firms that intend to develop, oversee, and execute artificial intelligence require a highly trained workforce. Important technologies like cognitive computing, machine learning, deep learning, and identifying objects from images are practically implemented by experts in AI systems. In addition, there is a problem of low R&D investments and scant patenting for small enterprises to include Al technology into present systems. Also, small errors may lead to a system failure, which tremendously affects the desired goals and achievement.

Opportunity

Multisector applications

The AI server market offers multiple growth opportunities in several industries. Cloud AI services are increasing due to cloud adoption, driving the need for AI infrastructure that scales, delivering efficient value and performance at a lower cost. In the healthcare industry, it is also possible to use artificial intelligence for diagnostics, developing an individual approach to treatment, or creating new drugs; this also requires servers for data analysis. Similarly, the automotive industry, particularly with the move towards more self-driving cars and other advanced driver assistance systems (ADAS), requires high-speed artificial intelligence servers for processing data in real time. All these diverse opportunities indicate the growing trends of AI servers and their relevance in developing solutions for diverse and severing different verticals.

Servers Insights

The AI training server segment held the dominating share of the AI server market in 2024. AI servers are high-performance computing systems that are specifically developed for AI training and inference, as well as highly integrated software and hardware packages required for state-of-the-art AI computations on large volumes of data. There is a constant emergence of complex AI models in many industries and fields, such as health, finance, automobile, and natural language processing. With organizations attempting to implement more precise and complex AI-based systems, there is a demand for effective AI servers with dedicated hardware, including GPUs and CPUs. These servers are intended to provide high computational loads for the training of intricate models of machine learning. AI training servers that are open and graphical models tend to have the benefit of hardware support organizations that plan to improve model learning and creation.

• In May 2024, Edgecore Networks introduced its new AI server AGS8200, it’s a new era, high-performance GPU-based server that focuses on AI and ML requirements. The AGS8200 is perfect for training big language models, automation, and object classification and recognition applications. The Edgecore AI server provides an extremely high-speed and high-expandability solution.

Hardware Insights

The GPU segment held the leading share of the AI server market in 2024. With ongoing developments and the increasing scope of AI across several sectors, the reliance on GPU servers is expected to continue, ensuring sustained growth and technological progression in the AI landscape. GPU servers are designed specifically to work in parallel, which makes them ideal for handling artificial intelligent applications such as machine learning and deep learning. This improves undertaking such as image creation, writing, and any sort of artificial intelligence-facilitated creative work. GPUS has a parallelism that highly enhances the training and inference cycles of the machine learning models, making them vital for applications that need real-time data processing and analysis. The use of GPUs has been further encouraged by their functionalities in different areas and the use of such procedures as natural language processing, computer vision, and deep learning duties.

• In December 2023, Yotta Infrastructure, a hyperscale tier IV data center provider company based in India, signed a partnership with NVIDIA Corporation, a premium innovator of GPU accelerated computing. Through this partnership, Yotta Data Services wants to get GPU computing infrastructure and platforms for the Shakti Cloud platform.   

The ASIC segment is expected to grow at a notable rate in the AI server market during the forecast period. The application specific integrated circuits (ASIC) are integrated circuits (ICs) or chips tailored or customized for a specific purpose. The development of artificial intelligence integration, the tendency to adopt automation technology across industries, the high demand for cryptocurrency mining, and the high requirement for accurate chips for driving self-driving cars are developments that could expand the ASIC chip market growth. The use of chips in telecommunication, automobiles, healthcare, industries, etc.

• In March 2024, the AST SpaceMobile, Inc. progressed the effort toward the creation of the world's first space-based cellular broadband network and announced the start of the tape-out phase for its highly expected Application-Specific Integrated Circuit (ASIC), developed in partnership with TSMC, the premier global semiconductor foundry. 

End-user Insights

The IT and telecom segment held the dominating share of the AI server market in 2024. AI has great potential to revolutionize many aspects of telecom organizations, as it offers permanent and accurate tuning of various network factors. The working of IT & Telecom with a huge traffic inflow and multiple executions makes its possibility to adopt the AI servers visible. Telecom operators use artificial intelligence to forecast and prevent network outages, as well as to perform traffic control and enhance their service provision based on the key parameters shaped through analytics and decision-making. Constant improvements in AI and machine learning applications, plus the growth of the digital communication infrastructure, should maintain a strong stream of demand within this segment, requiring continued RE changes and adaptations. Another critical aspect of mobile networks and IoT apps is for AI servers to handle all the data processing that is precipitated by most mobile gadgets and IoT apps to ensure enhanced and optimized network connectivity.

AI Server Market Companies

• Foxconn
• Hewlett Packard Enterprise Company
• Intel Corporation
• Inventec Corporation
• MiTAC International Corporation
• Nvidia Corporation
• Quanta Computer Inc.
• Super Micro Computer, Inc.
• Wistron Corporation
• Wiwynn Corporation

Market Leader Announcement

• In September 2024, Lenovo started AI server production in India and launched the R&D lab in Bengaluru. The Indian plant has begun making servers infused with Artificial Intelligence. The plant will produce five products: three rack-mounted enterprise AI servers and two flagship 8-way GPU servers.
• Amar Babu, President-Asia Pacific, Lenovo, said this development will contribute to the realization of both Lenovo’s and the Indian government’s ‘AI For All’ vision. We committed to driving India’s growth as an innovation hub by increasing our geographic presence in manufacturing across the globe and leveraging the capability of Indian talent and industry ecosystem for technology developments.

Recent Developments

• In March 2024, NVIDIA introduced the Blackwell GPU Platform, which is useful in computing, data processing, electronic design automation, and other activities.
• In January 2024, Deloitte introduced a new Gen AI-powered solution for firms on both RelativityOne and Relativity servers to help firms manage the employees’ concerned activities such as employee investigation, document review, and others.
• In June 2024, Foxconn planned to manufacture AI servers within the country through several facilities in India. The announcement is in line with the company’s strategy of significant expansion of operations in India and diversification of its manufacturing capabilities.
• In November 2023, KX announced KDB+A Server Edition, a high-performance, scalable vector database with built-in parsers optimized for time-series generative AI and contextual search. It can quickly be adopted in different deployment models, such as the cloud, physical host, and hybrid models through Docker. 

Segments Covered in the Report

By Servers

• AI Data Server
• AI Training Server
• AI Inference Server
• Others

By Hardware

• GPU
• ASIC
• FPGA
• CPU
• Others

By End-user

• IT and Telecommunication
• Transportation and Automotive
• BFSI
• Retail and E-commerce
• Healthcare and Pharmaceutical
• Industrial Automation
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa