Global Data Center CPU Market Size Likely to Expand at a CAGR of 15.2% By 2034

Global Data Center CPU Market size is projected to experience robust growth from 2025 to 2034, driven by the increasing demand for high-performance computing and energy-efficient processors in data centers.

The market is expected to grow at a Compound Annual Growth Rate (CAGR) of approximately 15.2% during the forecast period, with the market size estimated at USD 14.7 Billion in 2025 and anticipated to reach USD 48.9 Billion by 2034.

Data Center CPU Market: Growth Factors and Dynamics

The market is anticipated to experience growth due to the Central Processing Unit (CPU) segment.

• Server processors, which are also referred to as CPU data center processors, are an essential element of data center operations. These processors are specifically designed to meet the high-performance demands and demanding workloads of data center environments. The high core count of CPU data center processors is one of their most significant characteristics. These processors frequently contain multiple cores, with a range of 8 to 64 or more. This enables data centers to manage a variety of duties concurrently by facilitating the parallel processing of tasks. Additionally, the data center’s overall performance is optimized by the high core count, which guarantees efficient resource utilization.

• The high clock speed of CPU data center processors is another critical feature. The pace at which a processor can execute instructions is referred to as clock speed. Data processing is expedited by increased processor speeds, which is essential for data centers that must manage substantial volumes of data in real time. Furthermore, turbo boost technology is frequently available in CPU data center processors, which temporarily increases the clock speed when additional performance is required.

• Additionally, CPU data center processors are engineered to facilitate virtualization. Virtualization enables the operation of multiple virtual machines on a single physical server, thereby optimizing resource utilization and minimizing hardware expenses. The performance and security of virtualized environments are enhanced by the inclusion of hardware-assisted virtualization in CPU data center processors.

• The exponential expansion of data produced by a variety of sources, including the Internet of Things, social media, and mobile devices, is one of the primary market drivers. Powerful, high-performance processors are necessary to process and analyze this vast quantity of data in real time. Data center operators are compelled to invest in advanced CPU processors to satisfy the increasing computational requirements as the market for data processing continues to expand.

• The American data center processor market has expanded significantly as a result of the proliferation of data-intensive applications, technological advancements, and the demand for high-performance computing technology. The demand for reliable data centers in North America has been exacerbated by the transition of businesses to cloud-based solutions. This has necessitated the development of potent processors that can manage the growing volume of data and deliver consistent performance.

• The market’s growth is being driven by the requirement for a high data transmission rate, which is being driven by the high adoption of the Internet and advanced technologies such as AI, 5G, IoT, and high-performance computing in the United States. The internet penetration rate in the United States was 91.8% as of October 2023, according to Meltwater, a software-as-a-service solution company and an online media monitoring company.

Report Scope

Data Center CPU Market: Recent Development

• February 2024: Arm Holdings released a new set of specifications for chip manufacturing that it claims could reduce the time required to develop data center processors to less than a year. Amazon.com, Microsoft, and Ampere Computing, which supplies CPUs to Oracle, have already implemented Arm’s data center processor technology. Arm has unveiled a new iteration of designs for the computing “cores,” which are the most critical component of a data center chip.

• In February 2024, Faraday disclosed that it had formed a partnership with Intel and Arm to create 64-core Intel 18A processors for its system-on-chip (SoCs) evaluation platform. Intel Foundry Services (IFS) would manufacture the chips through its 18A fabrication procedure.In order to facilitate the development of data center servers, high-performance computing-related ASICs, and custom SoCs, the processor would be integrated with Arm’s Neoverse Compute Subsystems and included in Faraday’s SoC evaluation platform.

List of the prominent players in the Data Center CPU Market:

• Intel Corporation
• Advanced Micro Devices Inc. (AMD)
• NVIDIA Corporation
• Arm Holdings plc
• IBM Corporation
• Qualcomm Technologies Inc.
• Marvell Technology Group Ltd.
• Huawei Technologies Co. Ltd.
• Broadcom Inc.
• Fujitsu Limited
• Oracle Corporation
• VIA Technologies Inc.
• Ampere Computing
• HPE (Hewlett Packard Enterprise)
• Alibaba Group (T-Head)
• Samsung Electronics Co. Ltd.
• Apple Inc. (M Series)
• MediaTek Inc.
• Baidu Inc. (Kunlun)
• Zhaoxin Semiconductor Corporation
• Others

The Data Center CPU Market is segmented as follows:

By Chip Type

• Central Processing Unit (CPU)
• Graphics Processing Unit (GPU)
• Field-Programmable Gate Array (FPGA)
• Application Specific Integrated Circuit (ASIC)
• Others

By Data Center Size

• Small and medium size
• Large size

By Vertical Industry

• BFSI
• Government
• IT and telecom
• Transportation
• Energy & utilities
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America