Data Centre Server Market Share, Size, Analysis & Forecast 2034

Data Centre Server Market Outlook

According to Expert Market Research, the global data centre server market reached nearly USD 50.74 billion in 2024. Fueled by surging demand for cloud computing, edge data centres, artificial intelligence workloads, and the rollout of 5G, the market is expected to grow at a compound annual growth rate (CAGR) of 6.50% from 2025 to 2034. By 2034, the industry is projected to hit USD 95.25 billion. As businesses accelerate digital transformation, optimize digital infrastructure, and require faster access to data from anywhere, data centre servers are becoming mission-critical assets across global industries.

What Are Data Centre Servers?

Data centre servers are powerful computing systems specifically designed to process, store, and manage large volumes of data within secure, scalable environments. Deployed in corporate, cloud, colocation, and edge data centres, these servers support enterprise applications, ecommerce platforms, AI/model training, big data analytics, content delivery, and IoT operations. Premium servers offer high performance, energy efficiency, virtualization support, and integration with hyperconverged infrastructure (HCI) systems.

Key Market Drivers

Explosion in Cloud Adoption and AI Workloads

As businesses migrate to cloud-based operations and embrace AI/ML-driven workflows, demand for high-density server racks and GPU-equipped nodes is rising. Data centre servers optimized for inference and training—combined with 5G connectivity—are essential for real-time analytics, recommendation systems, and autonomous applications.

Rise of Edge Computing

Edge data centres bring compute and storage closer to end users, reducing latency and boosting resiliency. Emerging use cases like autonomous vehicles, AR/VR, and industrial automation are powering server demand in edge sites globally.

Digitalization Across Industries

Telecom, healthcare, finance, retail, education, and government sectors are undergoing rapid digitalization. This trend drives demand for reliable, scalable infrastructure with efficient redundancy and disaster recovery systems.

Sustainability and Energy Efficiency Initiatives

Data centre operators are prioritizing energy-efficient server architectures—leveraging ARM-based CPUs, liquid cooling, and power-optimized hardware. Energy costs represent a significant share of operational expenses, making sustainability a key business driver.

Regulatory Compliance and Data Sovereignty

New data protection laws, regional storage mandates, and compliance frameworks (such as GDPR, CCPA, and HIPAA) are pushing enterprises to invest in owned or colocation servers—ensuring data control, security, and regional access optimizations.

Try before you buy: Get your free report sample – Click here

Market Segmentation

By Server Type

• Rack Servers

• Blade Servers

• Tower Servers

• Other High‑Density Servers

Rack and blade servers dominate data centre installations due to their scalability, dense form factors, and efficient resource access. Tower servers are more common in edge environments or small-scale deployments.

By Processor Architecture

• x86 Servers

• ARM-Based Servers

• RISC & Legacy Architectures

x86 servers maintain widespread deployment for compatibility and performance. However, ARM-based servers are gaining traction for cost-effective, energy-efficient workloads such as microservices, caching, and web servers.

By End-Use Industry

• IT and Telecommunication

• BFSI

• Retail and E‑commerce

• Healthcare

• Government and Public Sector

• Manufacturing

• Media and Entertainment

Telecom, cloud operators, banking, and ecommerce are the largest server consumers. Healthcare, government, and media are increasingly investing due to heightened demands for data availability, analytics, and digital services.

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

North America and Europe currently lead due to their extensive enterprise infrastructure, major hyperscale data centre hubs, and favorable regulatory environments. Asia Pacific is the fastest-growing region, propelled by cloud expansion, 5G deployment, and smart city initiatives in China, India, and Southeast Asia.

Key Trends Shaping the Market

AI-Optimized Server Architectures

Servers are being designed to incorporate AI accelerators—GPUs (NVIDIA, AMD), TPUs, FPGAs—to cater to training and inference workloads. Hyperscalers such as AWS, Azure, and Google Cloud are investing heavily in AI-first server platforms.

Disaggregated and Composable Infrastructure

Composable systems allow data centre operators to pool compute, memory, storage, and GPU/FPGA modules using high-speed fabric to tailor resources per application. This flexibility is helping modern data centres maximize performance and efficiency.

Liquid Cooling and Energy Reuse

Traditional air cooling is reaching performance limits. Advanced liquid immersion cooling and rear-door heat exchangers are being deployed. Waste heat reuse for district heating or industrial processes aligns with energy efficiency standards and compliance.

Integrated Rack-Level Security

As cyber threats intensify, servers are being equipped with boot-time TPM (Trusted Platform Module), remote attestation, encrypted interconnects, and firmware verification. These mechanisms help secure data from hardware level and protect against supply chain risks.

Server Subscription and Pay-Per-Performance Models

Shift from upfront capital expenditure to subscription-based hardware provisioning (server-as-a-service) allows businesses to consume compute flexibly and manage OpEx budgets. Major OEMs are testing leasing, renting, and pay-per-use models via channel partners.

Challenges Facing the Data Centre Server Market

Rising Capital and Infrastructure Costs

Advanced server generations involving GPUs, liquid cooling, high-speed interconnects, and redundancy increase price points. Rising costs of memory, SSD storage, and specialized components—coupled with interest rate increments—are limiting new deployments in cost-sensitive regions.

Sustainability and E-Waste Concerns

Short server refresh cycles contribute to substantial electronic waste. Managing retired hardware and reusing parts responsibly—or opting for server recycling—is becoming essential for meeting ESG commitments.

Component Supply Chain Disruptions

Geopolitical tensions, semiconductor shortages, and logistic bottlenecks impact server availability. OEMs and system integrators are diversifying suppliers and maintaining buffer inventories to ensure timely deployments.

Cooling Constraints and Power Densities

As rack densities increase, data centres confront cooling and power distribution challenges. Upgrades to facilities—power availability, tiered U spacings, and intelligent monitoring—are essential but CAPEX-intensive.

Opportunities in the Market

Untapped Edge Data Centre Expansion

As 5G, IoT, and real-time applications multiply, demand for compact servers in urban edge locations will surge. Small-scale server deployment offers major growth potential in regional hubs, metro-edges, and rural connectivity nodes.

ARM-Based Server Ecosystem Growth

Affordability and performance-per-watt gains position ARM servers to lead adoption in specific verticals—such as microservices, network functions virtualization (NFV), content delivery, and general-purpose datacenter workloads.

Expansion of Managed Infrastructure Services

Managed hosting and private cloud providers are growing—adding value with SLA-backed hosting and domain expertise, reducing complexity for enterprises lacking in-field IT teams.

Remote and Distributed Work Support

The hybrid work surge is increasing demand for private data centre infrastructure—enabling VPNs, secure desktops, video conferencing backends, and remote application hosting.

Market Forecast 2025–2034

With projected growth to USD 95.25 billion by 2034, the data centre server market is set for steady expansion. Growth will be fueled by AI/edge workloads, rising global digitalization, enterprise infrastructure modernization, and sustainable operations. Companies that prioritize energy-efficient architectures, resilient supply chains, secure boot environments, and flexible consumption models will lead the next decade of transformation.

Frequently Asked Questions (FAQs)

What is the current size of the data centre server market?
In 2024, the data centre server market was valued at approximately USD 50.74 billion and is projected to reach USD 95.25 billion by 2034.

Which industries use the most data centre servers?
The IT/cloud, telecom, BFSI, ecommerce, healthcare, and government sectors are the biggest consumers of data centre server infrastructure.

Why are ARM-based servers gaining popularity?
ARM-based servers offer lower power consumption and favorable performance-per-watt for specific workloads like web serving, caching, edge computing, and microservices.

What role does AI play in driving server demand?
AI training and inference require high computational capacity and GPU acceleration—driving demand for AI-optimized server architectures and advanced interconnects.

How are sustainability goals affecting data centre server design?
Growing demands for efficiency have led to adoption of liquid cooling, composable infrastructure, energy reuse, and hardware refresh cycles aligned to ESG strategies.

Media Contact:

Company Name: Claight Corporation
Email: sales@expertmarketresearch.com
Toll Free Number: +1-415-325-5166 | +44-702-402-5790
Address: 30 North Gould Street, Sheridan, WY 82801, USA
Website: https://www.expertmarketresearch.com