White Box Server Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Server Type (Rack & Tower, Blade, Density Optimized), By Business Type (Datacenters, Enterprise), By Processor (x86 servers, Non-x86 Servers), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 16.08 Billion
CAGR (2026-2031)	16.51%
Fastest Growing Segment	Datacenters
Largest Market	North America
Market Size (2031)	USD 40.22 Billion

Market Overview

The Global White Box Server Market will grow from USD 16.08 Billion in 2025 to USD 40.22 Billion by 2031 at a 16.51% CAGR. White box servers are unbranded computing systems assembled by original design manufacturers using commercial off-the-shelf components to serve the specific needs of large data centers. The primary drivers supporting this market include substantial cost efficiencies from reduced hardware redundancy and the high degree of flexibility that allows hyperscale operators to tailor infrastructure to exact workload requirements. These factors enable significant capital expenditure savings compared to proprietary preconfigured alternatives offered by traditional brands.

A significant challenge restricting wider market adoption is the lack of standardized post-sales support and maintenance ecosystems which often necessitates extensive internal technical capabilities from the buyer. This limitation makes deployment difficult for organizations without specialized IT teams to manage component failures. According to the Taiwan Electrical and Electronic Manufacturers’ Association, in 2024, Taiwanese original design manufacturers accounted for over 80 percent of total global server system production. This statistic highlights the immense production volume of the sector despite the service hurdles that impede growth in the broader enterprise segment.

Key Market Drivers

The surge in high-performance AI and machine learning workloads acts as a primary catalyst for the white box server sector, necessitating hardware configurations that traditional OEM models often struggle to deliver rapidly. Hyperscale operators and enterprises now require bespoke server architectures optimized for GPU density and advanced cooling solutions to handle intensive computational tasks. This demand for customization drives buyers toward Original Design Manufacturers (ODMs) who offer faster prototyping and production scalability. According to CNBC, August 2024, in the 'Foxconn Q2 Earnings Report', AI servers accounted for more than 40 percent of the company's total server revenue, underscoring the pivotal role of intelligent computing in current manufacturing volumes. This trend indicates a decisive shift away from standardized off-the-shelf units toward application-specific infrastructure designed to maximize processing efficiency.

Simultaneously, the rapid expansion of hyperscale cloud computing facilities continues to fuel the adoption of unbranded server hardware. Major cloud service providers are increasingly bypassing traditional server brands to engage directly with ODMs, aiming to reduce capital expenditures while maintaining strict control over their data center supply chains. This direct sourcing model allows for the integration of open standards and simplified maintenance protocols across vast server farms. According to Meta Platforms Inc., October 2024, in the 'Third Quarter 2024 Results', the company updated its 2024 capital expenditure outlook to between $38 billion and $40 billion, reflecting substantial investments in servers and data center infrastructure. The scale of such investment highlights the critical reliance on cost-optimized white box solutions to sustain growth. According to the Ministry of Economic Affairs, R.O.C., in 2024, export orders for information and communication products, driven mainly by AI and cloud servers, rose by 11 percent year-on-year in July.

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Key Market Challenges

The absence of standardized post-sales support and maintenance ecosystems creates a substantial barrier to entry for the broader enterprise sector in the white box server market. Unlike hyperscale operators, who possess robust internal engineering teams capable of diagnosing and repairing hardware faults, traditional enterprises rely heavily on comprehensive service-level agreements and on-site support from vendors to ensure continuity. White box servers typically lack these extensive service networks to maintain their low cost structures. Consequently, organizations without specialized technical personnel perceive the operational risk of downtime and unmanaged component failures as too high, effectively neutralizing the initial capital expenditure benefits offered by these unbranded systems.

This service gap fundamentally skews market growth toward self-sufficient tech giants rather than general business consumers. The restriction is evident in the market's consumption patterns, where adoption remains concentrated among entities with the resources to manage their own infrastructure lifecycles. According to the Open Compute Project Foundation, in 2025, global spending on OCP-recognized IT infrastructure reached $132 billion. This substantial figure reflects a market heavily driven by major data center operators who can successfully navigate these maintenance hurdles, while the vast potential of the mainstream enterprise market remains largely untapped due to the inability to secure reliable external technical support.

Key Market Trends

The increasing deployment of ARM-based processors represents a transformative shift in server architecture, driven by the need for greater energy efficiency and core density in cloud environments. Unlike traditional x86 silicon, ARM designs allow hyperscale operators and original design manufacturers to customize processor pipelines for specific cloud-native workloads, significantly reducing the total cost of ownership. This architecture is gaining rapid traction as data centers prioritize performance-per-watt metrics to manage the escalating power constraints of modern infrastructure. According to Reuters, July 2025, in the 'Exclusive: Arm expects its share of data center CPU market sales to rocket to 50% this year' article, the CEO of Arm Holdings projected that the company’s share of the global data center CPU market would surge to 50 percent by the end of 2025, driven largely by widespread adoption in AI and cloud facilities.

Concurrently, the market is witnessing deep penetration into 5G telecommunications networks, particularly through the adoption of AI-enabled Radio Access Network (AI-RAN) technologies. Telecom operators are moving away from proprietary fixed-function hardware toward software-defined, server-based architectures that can simultaneously handle 5G connectivity and heavy computational tasks. This convergence necessitates powerful white box servers capable of supporting virtualized network functions alongside artificial intelligence workloads at the network edge. According to TelecomLead, October 2025, in the 'NVIDIA to Invest $1 bn in Nokia to Drive AI-RAN and Data Center Networking Partnership' report, NVIDIA announced a strategic $1 billion investment in Nokia to accelerate the development and deployment of these next-generation AI-RAN systems, underscoring the critical role of accelerated computing in modern telecommunications.

Segmental Insights

The Datacenters segment is identified as the fastest-growing category within the Global White Box Server Market, driven by the escalating demand for scalable cloud infrastructure. Hyperscale operators and large enterprises are increasingly transitioning to these unbranded servers to optimize capital expenditure and achieve superior hardware customization compared to proprietary alternatives. Industry initiatives led by the Open Compute Project have further accelerated this trend by standardizing open hardware designs that enhance interoperability. Consequently, data center facilities are prioritizing white box solutions to efficiently manage expanding workloads related to big data and digitization, resulting in sustained segmental expansion.

Regional Insights

North America maintains a leading position in the global white box server market due to the extensive concentration of hyperscale data center operators and cloud service providers. The region captures significant market share because major technology enterprises prioritize customized, cost-effective hardware solutions over traditional branded servers. This dominance is further reinforced by the Open Compute Project, an industry initiative established in the United States that standardizes open hardware designs. Consequently, the rapid expansion of cloud infrastructure across the United States and Canada sustains the high demand for efficient white box server implementations.

Recent Developments

• In August 2024, AMD announced a definitive agreement to acquire ZT Systems, a provider of AI infrastructure for hyperscale computing, in a transaction valued at $4.9 billion. This acquisition aimed to expand the company's data center AI capabilities and accelerate the deployment of rack-scale solutions. By integrating ZT Systems' expertise in cloud computing infrastructure, AMD sought to deliver leadership AI training and inferencing solutions. The company stated that while it would retain the design and customer enablement teams to strengthen its systems expertise, it planned to sell ZT Systems' manufacturing division to a strategic partner following the transaction's close.
• In August 2024, Foxconn confirmed it remained on schedule to begin shipping NVIDIA's GB200 AI servers in the fourth quarter of 2024. Executives stated that the company would commence small volume shipments late in the year, with a significant production ramp-up expected in the first quarter of 2025. This announcement addressed market concerns regarding potential delays in the supply chain. The company reported that strong customer demand for AI servers had driven substantial revenue growth in its cloud and networking division. Foxconn also highlighted its readiness to provide comprehensive liquid cooling solutions for these high-performance rack-scale systems.
• In June 2024, Quanta Cloud Technology (QCT) unveiled new AI systems at Computex 2024 to address the demand for large-scale generative AI workloads. The company introduced NVIDIA MGX systems powered by the NVIDIA GB200 Grace Blackwell Superchip, alongside platforms supporting NVIDIA HGX B100 and B200 architectures. QCT highlighted its QuantaGrid servers, which utilize the GB200 Superchip and are interconnected via NVIDIA NVLink to enable scalability for the NVL72 rack-scale solution. These systems were engineered to provide superior application performance and enhanced energy efficiency, allowing data center customers to optimize their infrastructure for complex AI tasks while meeting sustainability targets.
• In June 2024, Wiwynn showcased its latest rack-level AI computing solutions and cooling technologies at Computex 2024. The company displayed the NVIDIA GB200 NVL72, a liquid-cooled AI system developed with Wistron, featuring 36 NVIDIA GB200 Grace Blackwell Superchips designed for trillion-parameter AI models. Wiwynn also introduced the GS1400A, a 4U AI server based on the NVIDIA MGX modular architecture, capable of accommodating eight NVIDIA H200 NVL PCIe GPUs. These launches demonstrated the company's focus on scalable, energy-efficient infrastructure optimized for high-performance computing. Wiwynn emphasized that these solutions offer significantly lower total cost of ownership compared to previous generations.

Key Market Players

• Quanta Computer Inc.
• Celestica Inc.
• MiTAC Holdings Corp.
• Super Micro Computer Inc.
• Hon Hai Precision Industry Company Ltd.
• SMART Global Holdings, Inc.
• Compal Electronics Inc.
• Wistron Corporation
• Wiwynn Corporation
• SDxCentral, LLC

By Server Type	By Business Type	By Processor	By Region
Rack & Tower Blade Density Optimized	Datacenters Enterprise	x86 servers Non-x86 Servers	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• White Box Server Market, By Server Type:

• Rack & Tower
• Blade
• Density Optimized

• White Box Server Market, By Business Type:

• Datacenters
• Enterprise

• White Box Server Market, By Processor:

• x86 servers
• Non-x86 Servers

• White Box 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