Server Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Processor Type (X86 Servers, ARM Servers, SPARC Servers, Power Servers), By Type of Server (Rack Servers, Blade Servers, Tower Servers, Micro Servers, Mainframe Servers), By End-User Industry (Healthcare, IT and Telecom, Hospitality, Retail, Manufacturing), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 103.82 Billion
CAGR (2026-2031)	11.42%
Fastest Growing Segment	Blade Servers
Largest Market	North America
Market Size (2031)	USD 198.64 Billion

Market Overview

The Global Server Market will grow from USD 103.82 Billion in 2025 to USD 198.64 Billion by 2031 at a 11.42% CAGR. A server is a dedicated computer or system designed to manage network resources and provide data, services, or programs to client devices. The market is primarily supported by the accelerating migration to cloud computing architectures, the extensive digitization of enterprise operations, and the critical demand for computational power to support artificial intelligence workloads. According to the Semiconductor Industry Association, in 2024, global semiconductor sales reached a record total of $166.0 billion during the third quarter, an increase of 23.2 percent compared to the previous year driven largely by demand from the data center sector.

However, a significant challenge that could impede market expansion is the escalating cost of energy required to power and cool increasingly dense server configurations. As organizations deploy high-performance computing clusters to handle complex processing tasks, the associated rise in electricity consumption and operational expenses presents a substantial financial and environmental obstacle for the industry.

Key Market Drivers

The Proliferation of Artificial Intelligence and Machine Learning Workloads is acting as a primary catalyst for the Global Server Market, necessitating a fundamental shift towards high-performance computing architectures. As enterprises and research institutions aggressively integrate generative AI models, there is a critical requirement for specialized hardware equipped with advanced GPU accelerators and high-bandwidth memory to handle complex training and inference tasks. This technological pivot has resulted in a surge of orders for accelerated computing units, distinguishing them from traditional general-purpose servers. According to Dell Technologies, August 2025, the company shipped a record $8.2 billion worth of AI-optimized servers during its second fiscal quarter, underscoring the substantial growth trajectory of this segment.

Concurrently, the Rapid Expansion of Hyperscale Cloud Computing and Data Centers is fueling sustained market demand as major technology providers scale their infrastructure to support digital services and cloud-native applications. Hyperscalers are heavily investing in the construction of new facilities and the procurement of dense server racks to accommodate the growing need for cloud storage and real-time processing power. According to Microsoft, October 2025, capital expenditures surged to $34.9 billion in the first fiscal quarter, with the majority of funds allocated to expanding cloud and AI infrastructure. This aggressive capital deployment directly impacts the manufacturing supply chain, driving revenue for key hardware assemblers. According to Foxconn, December 2025, total revenue for November 2025 increased by 26 percent year-over-year to approximately $27 billion, largely attributed to momentum in cloud and networking product shipments.

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Key Market Challenges

The escalating operational expenditure associated with energy consumption presents a distinct barrier to the expansion of the global server market. As enterprises integrate high-performance computing clusters to manage complex workloads, the electricity required to power and cool these dense configurations rises sharply. This substantial increase in operating costs often erodes profit margins and compels organizations to delay hardware refresh cycles or limit the scale of new infrastructure deployments. Consequently, the total cost of ownership becomes a primary constraint that restricts the volume of new server shipments and dampens broader market adoption.

According to the International Energy Agency, in 2024, the electricity consumption from data centers was projected to potentially double by 2026 compared to 2022 levels, reaching roughly 1000 terawatt-hours. This trajectory highlights the intense strain on existing power grids and infrastructure capacities. When power availability is constrained or prices become prohibitive, data center operators are frequently forced to cap their server density regardless of computational demand. This dynamic creates a bottleneck where energy limitations directly curtail the addressable market for server manufacturers.

Key Market Trends

The Accelerated Adoption of Liquid and Immersion Cooling Solutions is becoming a critical requirement as server thermal design power densities surpass the physical limits of traditional air-cooled infrastructure. With next-generation AI processors and high-performance computing clusters generating unprecedented heat loads, data center operators are rapidly standardizing direct-to-chip and immersion cooling technologies to ensure hardware reliability and energy efficiency. This transition is shifting from niche deployments to broad market integration, driven by the need to support dense GPU configurations without incurring prohibitive operational costs. According to Lenovo Group Limited, August 2025, revenue from the company's liquid cooling solutions grew 30 percent year-over-year, highlighting the intensifying demand for advanced thermal management systems in enterprise and cloud environments.

Simultaneously, the Shift Toward ARM-Based Processor Architectures is fundamentally reshaping the server landscape as organizations prioritize energy efficiency and workload-specific optimization. Hyperscale cloud providers and enterprises are increasingly migrating away from legacy x86 architectures to deploy custom silicon and cloud-native processors that offer superior performance-per-watt ratios for distributed applications. This architectural pivot allows for greater scalability and reduced power consumption, directly addressing the sustainability mandates and cost constraints facing modern data centers. According to Arm Holdings, April 2025, senior executives projected that the architecture would capture 50 percent of the global data center CPU market by the end of 2025, signaling a decisive departure from the historic duopoly of general-purpose processor vendors.

Segmental Insights

The Blade Servers segment is currently identifying itself as the fastest-growing category within the Global Server Market due to the increasing requirement for high-density computing in modern data centers. These modular systems strip away excess components to share power, cooling, and networking resources within a single chassis, thereby maximizing processing power per square foot. This architectural efficiency directly addresses corporate needs for reduced energy consumption and physical space optimization. Consequently, the rising demand for scalable virtualization and centralized cloud infrastructure continues to accelerate the global adoption of blade architectures over traditional configurations.

Regional Insights

North America leads the global server market due to the high concentration of hyperscale data centers and major technology corporations within the region. This dominance is driven by substantial capital investment in cloud infrastructure and the extensive integration of artificial intelligence tools by enterprises. Furthermore, the rapid expansion of 5G networks increases the demand for edge computing capabilities to support faster data processing. This strong market position is reinforced by a mature industrial framework that prioritizes digital adoption, ensuring the region remains the central hub for server procurement and deployment.

Recent Developments

• In February 2025, Hewlett Packard Enterprise announced the release of eight new HPE ProLiant Compute Gen12 servers, designed to deliver advanced security and performance for hybrid environments. These next-generation systems integrate the latest Intel Xeon 6 processors and feature AI-driven management capabilities to enhance IT productivity and automation. The company stated that the Gen12 servers are engineered to achieve up to 65% in annual power savings compared to previous generations, enabling organizations to maximize data center capacity and efficiency. This launch addresses the critical need for secure, workload-optimized infrastructure capable of handling evolving cyber threats and data-intensive applications.
• In October 2024, Lenovo introduced a new suite of ThinkSystem infrastructure solutions powered by AMD EPYC 9005 Series processors and AMD Instinct MI325X accelerators. These servers were developed to provide superior performance and efficiency for demanding edge-to-cloud tasks, including artificial intelligence training, inferencing, and complex modeling. The company reported that these platforms achieved numerous world-record performance benchmarks, offering a significant reduction in energy consumption and operational costs. This development aims to assist enterprises in consolidating workloads and accelerating their adoption of AI technologies through optimized hardware configurations.
• In June 2024, Supermicro unveiled its X14 server portfolio, incorporating the Intel Xeon 6700-series processors to address a broad spectrum of applications from the data center to the edge. The company emphasized that these new systems are optimized for liquid cooling solutions, acknowledging the increasing thermal management needs of modern high-performance computing environments. Additionally, the X14 platform supports the OCP Data Center Modular Hardware System (DC-MHS), designed to reduce complexity and streamline maintenance for hyperscalers and cloud service providers. This launch focused on delivering enhanced efficiency and lower total cost of ownership for compute-intensive workloads.
• In May 2024, Dell Technologies expanded its global server offerings by launching the PowerEdge R670 and R770 CSP Edition servers, which were specifically engineered for cloud service providers. These new systems were the first to market featuring the Intel Xeon 6 processor with Efficient-cores, designed to optimize performance for high-density and scale-out cloud workloads such as data analytics and virtualization. The release also marked the debut of the Data Center – Modular Hardware System (DC-MHS) architecture within the company's portfolio, a standard aimed at simplifying server integration and deployment for large-scale operations.

Key Market Players

• Dell Technologies Inc
• Hewlett Packard Enterprise Development LP
• Lenovo Group Limited
• Inspur Information
• Cisco Systems Inc.
• Huawei Technologies Co. Ltd.
• Inspur
• Oracle Corporation.
• Fujitsu
• Super Micro Computer Inc.

By Type of Server	By End-User Industry	By Region
Rack Servers Blade Servers Tower Servers Micro Servers Mainframe Servers	Healthcare IT and Telecom Hospitality Retail Manufacturing	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Server Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Server Market, By Type of Server:

• Rack Servers
• Blade Servers
• Tower Servers
• Micro Servers
• Mainframe Servers

• Server Market, By End-User Industry:

• Healthcare
• IT and Telecom
• Hospitality
• Retail
• Manufacturing

• Server Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE