The global data center CPU market was valued at USD 13.16 billion in 2024 and is forecast to grow from USD 14.19 billion in 2025 to USD 28.04 billion by 2034 at a compound annual growth rate of 7.87% from 2025 to 2034. Growth is attributed to rising demand for cloud computing, Artificial Intelligence and machine learning workloads, higher core counts, integrated Artificial Intelligence acceleration, and energy-efficient designs. The report cites hyperscale cloud expansion, virtualized workloads, and edge and 5G deployments as primary demand drivers.
Regionally, North America held the largest share at 28% in 2024, supported by hyperscale providers and R&D capabilities, while Asia Pacific is identified as the fastest-growing market because of rapid digital transformation and cloud adoption. The U.S. market was estimated at USD 2.58 billion in 2024 and is projected to reach USD 5.63 billion by 2034 at a CAGR of 8.12%. By architecture, x86 captured the largest share at 60% in 2024, while ARM is the fastest-growing architecture. By form factor, rackmount servers accounted for the largest share at 40% in 2024, and microservers are expected to grow the fastest. Cloud computing accounted for the biggest application share at 35% in 2024, with the Artificial Intelligence and machine learning segment cited as the fastest-growing application.
Market dynamics include intensified competition among major vendors such as Intel, AMD, NVIDIA, and Arm, supply chain constraints, and advances in chiplet and manufacturing technologies. The report highlights recent product and strategy moves: Intel launched the Xeon 6700P series in February 2025 with higher core counts and per-core Artificial Intelligence acceleration; Qualcomm confirmed re-entry into the data center CPU market in May 2025 with NVIDIA NVLink Fusion support; AMD announced new EPYC processors in April 2025; Google introduced Trillium in May 2024 to accelerate AI workloads; Arm projected substantial share gains in March 2025; and Meta announced plans in August 2025 to invest over Not stated billion in Artificial Intelligence. Opportunities noted include energy-efficient ARM designs, CPUs optimized for multi-tenant cloud environments, and CPUs integrated with accelerators for hybrid compute stacks.
