Data Center Chip Market Report 2026

Data Center Chip Market Overview

• Data Center Chip market size has reached to $19.67 billion in 2025 • Expected to grow to $37.44 billion in 2030 at a compound annual growth rate (CAGR) of 13.7% • Growth Driver: Rising Cloud Adoption Driving Demand For The Market Due To Scalability And High-Performance Computing Needs • Market Trend: Innovations In Infrastructure Chips For Optimized Computing And AI Workloads • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Data Center Chip Market?

A data center chip is a specialized semiconductor designed to power servers and infrastructure in data centers, handling computing, storage, and networking tasks. It supports high-performance workloads such as cloud services, AI, and enterprise applications. The main chip types of data center chips are central processing units (CPUs), graphics processing units (GPUs), application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), and neural processing units (NPUs). A central processing unit (CPU) is the main component of a computer that executes instructions and performs calculations, controlling all operations of the system. These are manufactured using various technology nodes, such as 25 nanometers (nm) and below, 26–45 nm, 46–65 nm, and above 65 nm, and are deployed across data centers of varying scales, including small, medium, and large-sized facilities. These chips find applications in data storage, networking, high-performance computing (HPC), artificial intelligence (AI) and machine learning (ML), and cloud computing. These are used by various end-users such as information technology, telecommunications, healthcare, banking, financial services and insurance (BFSI), retail and e-commerce, entertainment and media, energy, and others.

What Is The Data Center Chip Market Growth Forecast?

The data center chip market size is expected to see rapid growth in the next few years. It will grow to $37.44 billion in 2030 at a compound annual growth rate (CAGR) of 13.7%. The growth in the forecast period can be attributed to surge in AI and ML workloads, demand for energy-efficient data center chips, adoption of custom silicon by cloud providers, growth of edge-to-cloud data processing, advancements in sub-5 NM manufacturing. Major trends in the forecast period include chiplet-based processor architectures, heterogeneous computing integration, advanced semiconductor packaging adoption, supply chain localization and diversification, reliability and uptime optimization for hyperscale data centers.

Global Data Center Chip Market Segmentation

1) By Chip Type: Central Processing Units (Cpus), Graphics Processing Units (Gpus), Application-Specific Integrated Circuits (Asics), Field-Programmable Gate Arrays (Fpgas), Neural Processing Units (Npus) 2) By Technology: 25 Nanometer (NM) And Below, 26 Nanometer (NM) To 45 Nanometer (NM), 46 Nanometer (NM) To 65 Nanometer (NM), Above 65 Nanometer (NM) 3) By Data Center Size: Small And Medium Size, Large Size 4) By Application Area: Data Storage, Networking, High-Performance Computing (HPC), Artificial Intelligence (Ai) And Machine Learning (Ml), Cloud Computing 5) By End-Use: Information Technology, Telecom, Healthcare, Banking, Financial Services, And Insurance (BFSI), Retail And E-Commerce, Entertainment And Media, Energy, Other End-Users Subsegments: 1) By Central Processing Units: Server Central Processing Units (CPUs), High-Performance Central Processing Units (CPUs), Low-Power Central Processing Units (CPUs) 2) By Graphics Processing Units: Discrete Graphics Processing Units (GPUs), Integrated Graphics Processing Units (GPUs), Artificial Intelligence Or Machine Learning Accelerators, High-Performance Computing Graphics Processing Units 3) By Application-Specific Integrated Circuits: Networking Application-Specific Integrated Circuits (ASICs), Storage Application-Specific Integrated Circuits (ASICs), Security Application-Specific Integrated Circuits (ASICs), Artificial Intelligence or Machine Learning Application-Specific Integrated Circuits (ASICs), Custom Application-Specific Integrated Circuits (ASICs) 4) By Field-Programmable Gate Arrays: High-End Field-Programmable Gate Arrays (Fpgas), Mid-Range Field-Programmable Gate Arrays (Fpgas), Low-End Field-Programmable Gate Arrays (Fpgas), Embedded Field-Programmable Gate Arrays (Fpgas) 5) By Neural Processing Units: Edge Neural Processing Units (NPUs), Cloud Neural Processing Units (NPUs), Artificial Intelligence Inference Neural Processing Units (NPUs), Artificial Intelligence Training Neural Processing Units (NPUs)

What Is The Driver Of The Data Center Chip Market?

The increasing adoption of cloud services is expected to propel the growth of the data center chip market going forward. Cloud services refer to internet-based computing resources and applications that users can access on-demand without owning physical infrastructure. Increasing cloud services is driven by scalability, allowing businesses to easily adjust resources on demand without heavy hardware investment. Data center chips help cloud services by providing high-performance computing and efficient data processing, enabling servers to handle large workloads, store massive data, and deliver fast, reliable cloud applications. For instance, in June 2024, according to AAG IT Services, a UK-based non-government organization, in 2023, around 63% of small and medium-sized business workloads and 62% of small and medium-sized business data are expected to be hosted in public clouds, up from 57% and 56% in 2022. Therefore, the increasing adoption of cloud services is driving the growth of the data center chip industry.

Key Players In The Global Data Center Chip Market

Major companies operating in the data center chip market are Google LLC, Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Intel Corporation, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Qualcomm Technologies Inc., Sk Hynix Inc., Broadcom Inc., Hewlett Packard Enterprise, Fujitsu Limited, NVIDIA Corporation, Advanced Micro Devices Inc., Texas Instruments Incorporated, STMicroelectronics N.V., Marvell Technology Group Ltd., Arm Holdings Plc, Monolithic Power Systems Inc., Ampere Computing LLC

Global Data Center Chip Market Trends and Insights

Major companies operating in the data center chip market are focusing on developing technological advancements such as custom-designed data center infrastructure chips to enhance server performance, energy efficiency, and support increasingly complex cloud and AI workloads. Custom-designed data center infrastructure chips refer to semiconductor components specifically engineered for data center operations, optimized for tasks such as high-performance computing, data storage, networking, and AI processing, rather than general-purpose computing. For instance, in November 2024, Microsoft Corporation, a US-based technology company, launched azure integrated HSM (hardware security module) and azure boost DPU (data processing unit) to enhance cloud security and accelerate data-intensive workloads. Azure integrated HSM secures encryption keys inside dedicated hardware for faster, safer cryptographic operations in the cloud. Azure boost DPU offloads network and storage workloads from CPUs, boosting data center speed and efficiency for demanding AI applications.

What Are Latest Mergers And Acquisitions In The Data Center Chip Market?

In June 2025, Qualcomm Inc., a US-based semiconductor and technology company, acquired Alphawave IP Group plc for $2.4 billion. With this acquisition, Qualcomm aims to strengthen its position in the data center chip space by complementing its custom CPU and NPU offerings with Alphawave Semi’s advanced connectivity solutions, thereby enabling the company to deliver more integrated, high-performance, and energy-efficient computing platforms tailored for AI inferencing and evolving data center demands. Alphawave Semi is a UK-based semiconductor company that offers data center chips.

Regional Outlook

North America was the largest region in the data center chip market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Data Center Chip Market?

The data center chip market consists of revenues earned by entities by providing services such as cloud infrastructure optimization service, virtualization support service, thermal management service, edge data processing, and security and encryption processing service. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center chip market consists of sales of switching and routing chips, load balancer chips, hardware security modules (HSMs), and latency optimization chips. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Data Center Chip Market Report 2026?

The data center chip market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the data center chip industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.