The global server market is expected to surge 80 percent to US$455.41 billion this year, up from US$253.02 billion last year, driven by accelerated infrastructure expansion among cloud service providers (CSPs), International Data Corp (IDC) said in a report on Tuesday.
Non-x86 server systems are expected to grow 169.5 percent year-on-year, while x86 systems are expected to expand 57.9 percent, the US-based market researcher said.
IDC projects a further 24.3 percent growth next year, bringing total market value to US$565.9 billion.
Photo: RITCHIE B. TONGO, EPA-EFE
Despite macro challenges such as slowing economic activity, supply chain disruptions, geopolitical conflicts and rising tariffs, rapid advances in artificial intelligence (AI) continue to fuel demand for high-performance servers, it said.
Large CSPs are expected to continue their accelerated infrastructure build-outs over the next five years, while other enterprises are expected to balance between on-premises deployments and cloud-based AI investments, it said.
That trend is expected to support a compound annual growth rate of 28.7 percent in the server market through 2029, it added.
The combined capital expenditure of the world’s eight largest CSPs is forecast to jump 61 percent year-on-year to US$420 billion this year, as they ramp up investments in server racks powered by Nvidia Corp’s graphics processing units and boost spending on data centers and in-house application-specific integrated circuit design, Taipei-based market researcher TrendForce Corp (集邦科技) said earlier this month.
The eight CSPs are: Google, Amazon Web Services, Meta Platforms Inc, Microsoft Corp, Oracle Corp, Tencent Holdings Ltd (騰訊), Alibaba Group Holding Ltd (阿里巴巴) and Baidu Inc (百度), TrendForce said.
This year, servers powered by Nvidia’s GB200 and GB300 chips are expected to be the main targets for CSPs, driven by higher-than-expected demand, it said.
Next year, their total capital expenditure is projected to rise a further 24 percent to more than US$520 billion and reach a new record high, as server shipments such as Nvidia’s GB and Vera Rubin series are expected to increase, TrendForce said.
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