Data Center Chip Market Size to Surpass USD 57.16 Billion by 2032, Owing to Soaring Cloud Computing and AI Workload Demands | Report by SNS Insider

Austin, Aug. 01, 2025 (GLOBE NEWSWIRE) -- The Data Center Chip Market was valued at USD 19.73 billion in 2024 and is expected to reach USD 57.16 billion by 2032, growing at a CAGR of 14.32% over the forecast period from 2025 to 2032.

Surging Demand for AI and Cloud Fuels Rapid Evolution of the Data Center Chip Market

The Data Center Chip Market is evolving rapidly as the world becomes increasingly data-centric. The exponential rise in cloud computing, artificial intelligence, big data analytics, and edge computing has created an insatiable need for efficient and powerful data processing units. Organizations across industries—from tech and telecom to healthcare and finance, are deploying advanced data center chips to manage rising workloads and latency-sensitive applications.

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In the U.S., the Data Center Chip Market is expected to grow from USD 5.43 billion in 2024 to USD 15.46 billion by 2032, at a CAGR of 13.97%. Driving this surge are increasing cloud adoption, AI workload proliferation, and rising data processing demands, especially in hyperscale data centers. U.S. data centers consumed about 4.4% of national electricity in 2023, prompting the Department of Energy to designate 16 federal sites, including national laboratories like Los Alamos and Oak Ridge, for new AI-centric data center development.

Key Players:

• Advanced Micro Devices, Inc.
• Alibaba
• Arm Holdings
• Broadcom Inc.
• Google
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Intel Corporation
• Marvell
• Micron Technology, Inc.
• NVIDIA Corporation
• Qualcomm
• SAMSUNG
• STMicroelectronics
• Texas Instruments Incorporated

Data Center Chip Market Report Scope:

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Segment Analysis

By End-Use

In 2024, the IT & Telecom segment led the Data Center Chip Market with approximately 32% revenue share, driven by robust investments in 5G infrastructure, virtualization, and large-scale data storage. The need for real-time processing and scalable cloud platforms makes data center chips indispensable for this sector.

The Healthcare segment is poised to grow at the fastest CAGR of 16.10%, supported by surging adoption of AI in diagnostics, genomics, and telehealth platforms. Managing vast volumes of sensitive and complex data requires powerful, secure chip solutions.

By chip type

The Processors segment dominated with a 48% revenue share, as CPUs and GPUs form the backbone of all computing processes in data centers. These chips are vital for managing workloads, virtualization, and cloud services. Meanwhile, the Networking chip segment is expected to expand at a CAGR of 17.56%, responding to demand for ultra-fast data transfer, latency reduction, and high-bandwidth interconnectivity.

By application

Artificial Intelligence (AI) emerged as the leading segment with a 41% market share due to the widespread deployment of GPUs, TPUs, and ASICs for deep learning, NLP, and real-time decision-making. On the other hand, the Cloud Computing segment is projected to grow at a CAGR of 15.51%, underpinned by accelerating enterprise migration to cloud-native architectures and SaaS platforms.

By data center type

Large Data Centers accounted for the largest share—61% in 2024—and will register the fastest CAGR of 15.05%. These mega-facilities, operated by hyperscalers like AWS, Microsoft, and Google, demand high-density, power-efficient chip infrastructure to manage complex, multi-tenant workloads.

Global Surge in Data Center Chip Market Led by North America, with Asia Pacific Emerging as Fastest-Growing Region

North America dominated the Data Center Chip Market with a 39% revenue share in 2024, driven by robust infrastructure, early cloud adoption, and leadership from tech giants like Intel, AMD, and Nvidia. The U.S. remains the regional powerhouse, supported by federal AI initiatives and expanding hyperscale data centers. Asia Pacific is projected to grow at the fastest CAGR of 22.30% from 2025 to 2032, fueled by rapid digital transformation, high data consumption, and strong semiconductor investments, particularly in China and India. Europe maintains steady growth, led by Germany, which is advancing industrial digitization and energy-efficient technologies. Meanwhile, emerging markets in the Middle East & Africa and Latin America are gaining traction, with increased digital infrastructure spending and growing cloud adoption in countries like UAE, Saudi Arabia, and Brazil. These global developments collectively underscore a dynamic and rapidly evolving market landscape for data center chips.

Recent Developments

• In 2025, Intel introduced its Xeon 6 processors with P-cores, delivering optimized AI acceleration, improved media processing, and advanced networking functionalities, laying the foundation for future-ready data centers.
• Marvell, in collaboration with TSMC, unveiled its first 2nm silicon IP for AI and cloud infrastructure. This development leverages TSMC’s 2nm process to push boundaries in efficiency, performance, and chip scalability.

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Exclusive Sections of the Report (The USPs)

• regional transaction volume trends – Helps you identify high-growth regions by analyzing chip transaction volumes and regional dynamics, enabling focused investment in rapidly scaling data center infrastructure markets like Asia Pacific and North America.
• AI/ML workload performance gains – Helps you assess advancements in chip capabilities tailored for artificial intelligence and machine learning, crucial for benchmarking vendors and understanding which chip architectures are optimized for next-gen workloads.
• Advanced chip packaging and integration metrics – Helps you understand how innovations in chiplet architecture, 2.5D/3D packaging, and heterogeneous integration are enhancing performance-per-watt and form factor efficiency in data center environments.
• Cost per performance unit benchmarks – Helps you compare the economic efficiency of chips across manufacturers by measuring cost per teraflop or equivalent metrics, supporting better procurement, R&D, and pricing strategy decisions.
• Data traffic growth vs. chip demand correlation – Helps you quantify the impact of surging global data traffic on chip demand, aiding in forecasting future production needs and aligning supply chains with consumption trends.
• Technological adoption index by region – Helps you uncover investment and innovation opportunities by mapping AI, cloud, and edge technology adoption rates, revealing underpenetrated markets for high-performance chip deployment.
• Performance-driven competitive landscape analysis – Helps you evaluate the positioning of major players like Intel, AMD, Nvidia, and Marvell by analyzing innovation cycles, chip roadmap maturity, and performance benchmarks to inform partnership or acquisition strategies.

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