Data Center CPU Market Size, Share, Trends, Growth 2032

Data Center CPU Industry Prospective:

The global data center CPU market size was worth around USD 217.68 billion in 2023 and is predicted to grow to around USD 341.36 billion by 2032 with a compound annual growth rate (CAGR) of roughly 5.90% between 2024 and 2032.

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Data Center CPU Market: Overview

A data center central processing unit (CPU) is a specially designed CPU to be used in data centers. These CPUs are considerably different in terms of power and performance from the traditionally used central processing units at home or workplace.

For instance, data center CPUs offer higher reliability, scalability, efficiency, and overall performance. They are equipped to deliver expected results meeting the operational demand of a data center, such as big data analytics, cloud computing, and artificial intelligence (AI)-based developments. Some of the key features of data center central processing units include advanced multi-threading, higher core count, power efficiency, and higher bandwidth.

During the forecast period, the industry for data center CPUs is expected to gain extreme momentum due to increasing demand across end-user verticals. In addition, the growing development of advanced data center facilities worldwide will also be responsible for the industry’s exceptional growth rate in the future.

One of the major challenges for the industry players is the high cost of initial investment as well as significant expenses associated with the maintenance of the advanced CPUs. In addition to this, the data center CPU industry lacks access to a sufficient number of skilled professionals who can develop and deploy cutting-edge central processing units. The growing advancements in CPU performance will create more opportunities for the industry players to expand in the coming years.

Key Insights:

• As per the analysis shared by our research analyst, the global data center CPU market is estimated to grow annually at a CAGR of around 5.90% over the forecast period (2024-2032)
• In terms of revenue, the global data center CPU market size was valued at around USD 217.68 billion in 2023 and is projected to reach USD 341.36 billion by 2032.
• The data center CPU market is projected to grow at a significant rate due to the increasing investments in Artificial Intelligence (AI) and Machine Learning (ML)
• Based on the number of CPU cores, the 16-core segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the application, the cloud computing segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Data Center CPU Market: Growth Drivers

Increasing investments in Artificial Intelligence (AI) and Machine Learning (ML) to create market demand

The global data center CPU market is expected to be driven by the rising investments in Artificial Intelligence (AI) and Machine Learning (ML) technologies worldwide. Artificial Intelligence is an emerging and rapidly growing field of advanced engineering solutions that enable machines to copy human intellectual capabilities.

In the last 5 years, investments in AI have soared compared to the previous years. Governments and private companies across the globe are seeking new opportunities to make AI-based investments catering to different end-user verticals.

For instance, in November 2024, the European Union announced its plans to invest nearly EUR 180 million in the development of cutting-edge technologies and research. Some of the selected fields of further innovation will include robotics, AI, and new materials. Currently, the US dominates the AI race; however, reports indicate that China has also amplified its investments to emerge as the next superpower in terms of AI-based innovations.

According to market experts, the AI industry in China is expected to witness an investment of nearly USD 1.41 trillion in the next 5 to 6 years. Some of the major industries that are at the forefront of AI innovations include banking & financial service providers, information technology (IT), healthcare, and e-commerce. Artificial Intelligence is a next-generation technology facilitated by the use of powerful data centers equipped with cutting-edge central processing units.

Increasing construction of new data centers to generate higher market revenue in the coming years

The global data center CPU market is expected to further benefit from the increasing development of new data centers worldwide.

For instance, in May 2023, Africa Data Centers, Africa’s largest provider of interconnected, carrier- and cloud-neutral data center facilities, announced its plans to soon begin the construction of a new facility in Ghana. According to official reports, the new unit will initially be equipped to provide 10 MW power with further expansion to 30 MW, depending on the final demand.

Additionally, In January 2025, Amazon, one of the leading technology companies, announced that it plans to expand its data center facilities in Georgia with an investment of USD 11 billion.

Data Center CPU Market: Restraints

High cost of development and maintenance to restrict market growth rate according to research

The global industry for data center CPU is expected to be restricted due to the high cost of technology development. The average cost of developing a functional CPU for data centers can reach up to several thousand dollars, depending on the exact features of the tool.

For instance, the cost of a server system equipped with 8 NVIDIA H100 Graphics Processing Units (GPUs) can cost more than USD 30,000. Furthermore, the maintenance cost of CPUs for data centers is equally high, limiting the development of new tools.

Data Center CPU Market: Opportunities

Increasing introduction of new solutions in the market to generate growth opportunities

The global data center CPU market is expected to generate growth opportunities due to the rising introduction of new solutions in the market.

In November 2024, Advanced Micro Devices. (AMD), a multinational technology firm announced the launch of several new solutions across major portfolios, such as AI, networking, data centers, and personal computers. The company has launched a new set of CPUs for data center servers suitable for scale-up (enterprise) and scale-out (cloud) workloads. The new CPU range is called Turin and it can handle around 17% more instructions per cycle than the previous generations of the technology.

In June 2024, Intel, another highly sought-after technology firm with a global presence, announced the launch of Xeon 6, its newest addition to the data center processor portfolio. The products are currently available in  Efficient-core (E-core) and Performance-core (P-core) variants with the highest levels of performance with a special focus on power conservation and hardware density. Similarly, other technology companies are actively developing more versatile CPUs as end-user applications continue to evolve.

Data Center CPU Market: Challenges

Lack of sufficient skilled professionals to challenge market expansion in the coming years

The global data center CPU industry is expected to be challenged by the lack of sufficient skilled workforce. Advanced CPUs with applications in data centers require technical expertise and currently the number of skilled professionals is highly limited. Furthermore, other factors such as intellectual property (IP) theft and concerns over cybercrimes may impact the final revenue in the industry.

Data Center CPU Market: Report Scope

Data Center CPU Market: Segmentation

The global data center CPU market is segmented based on the number of CPU cores, server form factor, application, and region.

Based on the number of CPU cores, the global market segments are 128-core, 64-core, 32-core, 16-core, 8-core, 4-core, 3-core, 2-core, 1-core, and others. In 2023, the highest revenue was generated by the 16-core segment. During the forecast period, the 2-core segment is expected to grow at a faster rate compared to the previous years. The configuration of 2-core CPUs allows more flexibility for data centers to upscale and downscale computing resources thus achieving energy and cost efficiency.

In 2023, the leading technology companies spent more than USD 10 billion on extensive research & development to improve CPU performance.

Based on the server form factor, the global data center CPU industry is divided into 4-socket, 2-socket, and 1-socket.

Based on the application, the global market divisions are big data analytics, machine learning, artificial intelligence, high-performance computing, cloud computing, web hosting, and others.

In 2023, the highest demand was listed in the cloud computing segment. The increasing acceptance of cloud-based digital solutions across industries and economies is fueling segmental revenue. Over 91% of companies worldwide use some form of cloud-based solutions. AI and machine learning are expected to deliver higher results during the forecast period.

Data Center CPU Market: Regional Analysis

North America to deliver exceptional results during the projection period

The global data center CPU market will be led by North America during the forecast period with the US leading the regional market. According to official estimates, the US is home to the world’s largest number of data centers totaling more than 5,300. The region was one of the first countries to invest heavily in the development of robust data centers powering essential industries regionally. In addition, the country is home to some of the largest technology giants as well as smaller companies with heavy investments in data centers.

In January 2025, EDGNEX Data Centers, a leading digital infrastructure company with headquarters in Dubai, announced its strategic entry into the US data centers market. The company is expected to build state-of-the-art data centers with 2000 MW capacity in the coming 4 years.

Asia-Pacific is a thriving market with China and India leading the regional revenue. China, for instance, has been investing in some of the major revolutionary technologies including 6G infrastructure and AI.

In October 2024, China announced the launch of an innovative program that will allow 100% foreign ownership of data centers to international companies in Haina, Beijing, Shenzhen, and Shanghai.

Data Center CPU Market: Competitive Analysis

The global data center CPU market is led by players like:

• IBM Corporation
• Intel Corporation
• Tencent Holdings Limited
• Alphabet Inc. (Google)
• Advanced Micro Devices (AMD)
• Amazon Web Services (AWS)
• NVIDIA Corporation
• Huawei Technologies Co. Ltd.
• Arm Holdings plc
• Qualcomm Incorporated
• Alibaba Group Holding Limited
• Microsoft Corporation
• Broadcom Inc.
• Meta Platforms (Facebook)
• Samsung Electronics Co. Ltd.

The global data center CPU market is segmented as follows:

By Number of CPU Core

• 128-Core
• 64-Core
• 32-Core
• 16-Core
• 8-Core
• 4-Core
• 3-Core
• 2-Core
• 1-Core
• Others

By Server Form Factor

• 4-Socket
• 2-Socket
• 1-Socket

By Application

• Big Data Analytics
• Machine Learning
• Artificial Intelligence
• High Performance Computing
• Cloud Computing
• Web Hosting
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa