PUBLISHER: Grand View Research | PRODUCT CODE: 1727972
PUBLISHER: Grand View Research | PRODUCT CODE: 1727972
The global data center chip market size was estimated at USD 21.21 billion in 2024 and is anticipated to grow at a CAGR of 12.5% from 2025 to 2030. The market is driven by several key factors such as demand for high-performance computing (HPC) and data-intensive applications surges, data centers require more advanced chip technologies to handle massive volumes of data. The increasing adoption of cloud computing, big data analytics, and artificial intelligence (AI) has fueled the need for efficient, high-capacity data center chips. These chips need to meet the processing power demands of modern applications while offering improved energy efficiency, scalability, and performance.
The continuous evolution of chip architectures, with innovations such as ARM-based processors and specialized AI chips gaining prominence in the data center chip industry. ARM-based chips are gaining traction due to their energy efficiency, which is critical for large-scale data centers seeking to minimize operational costs. Moreover, the growing adoption of AI and machine learning (ML) workloads in data centers is driving the demand for chips that can handle parallel processing and complex computations with high throughput.
In addition, the proliferation of edge computing is creating a need for distributed computing resources closer to the data source, further driving demand for data center chips that offer low latency, high processing power, and reduced energy consumption. For instance, in January 2025, ZEDEDA, a U.S.-based company in edge management and orchestration, announced the opening of its new headquarters in Abu Dhabi, UAE. The move is supported by strategic investments from Alpha Wave Incubation and Prosperity7, a subsidiary of Aramco. This growth is driven by the rising demand for edge computing and AI solutions across the Middle East. The increasing reliance on 5G networks, which require robust data center infrastructure for real-time processing and low-latency communication, is also contributing to market growth.
The shift towards hybrid and multi-cloud environments is pushing the demand for more advanced data center infrastructure. Companies require flexible, scalable solutions to manage workloads across various platforms, which in turn increases the demand for high-performance chips that can seamlessly integrate with diverse cloud environments. The rising need for robust cybersecurity solutions in data centers is also spurring innovation in chip designs that offer enhanced security features, such as hardware-based encryption and secure boot mechanisms.
Global Data Center Chip Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global data center chip market report based on game chip type, data center type, application, end-use, and region: