PUBLISHER: Grand View Research | PRODUCT CODE: 1772285
PUBLISHER: Grand View Research | PRODUCT CODE: 1772285
AI Server Market Summary
The global AI server market size was estimated at USD 124.81 billion in 2024 and is projected to reach USD 854.16 billion by 2030, growing at a CAGR of 38.7% from 2025 to 2030. Cloud computing and hyperscale data center expansion are driving the AI servers market growth.
Major cloud service providers are investing heavily in AI-optimized server infrastructure to cater to the growing number of enterprises seeking AI-as-a-service solutions. These deployments often involve custom server architectures, which allow for better energy efficiency and computational throughput. Moreover, as organizations shift toward hybrid and multi-cloud strategies, the need for scalable, AI-optimized server systems within data centers becomes even more critical, supporting both centralized training and edge inferencing scenarios.
The rapid adoption of generative AI applications across various industries is driving AI server market growth. From content creation and customer service automation to personalized marketing and drug discovery, generative AI is pushing the boundaries of compute-intensive operations. These applications require highly specialized server architectures capable of supporting massive parallelism and fast data throughput. The surge in demand for generative models like GPT and DALL*E is compelling enterprises and cloud providers to invest heavily in AI servers that can manage such computational intensity with speed and reliability.
The rise of hybrid and multi-cloud strategies is also accelerating the deployment of AI servers. Enterprises are opting for flexible infrastructure models that allow seamless integration between on-premises systems and public cloud platforms. Artificial intelligence (AI) servers designed for hybrid deployments must be highly adaptable, scalable, and secure to ensure smooth data mobility and unified AI workloads across diverse environments. This flexibility is crucial for organizations looking to optimize cost efficiency, performance, and regulatory compliance when deploying AI solutions at scale.
Cybersecurity and data privacy concerns are further fueling the need for on-premises AI servers. As organizations become increasingly reliant on AI for handling sensitive information such as biometric data, financial records, and proprietary business intelligence, there is growing reluctance to process such data in public cloud environments. On-prem AI servers offer the control and security needed to meet strict compliance standards like GDPR, HIPAA, and PCI-DSS, making them indispensable for industries such as healthcare, finance, and defense.
Moreover, the growth of AI chipsets and system-on-chip (SoC) technologies is transforming the design and capabilities of AI servers. Innovations in AI-specific hardware are leading to more compact, energy-efficient servers that can deliver unprecedented levels of performance. These new designs enable edge computing capabilities without compromising on processing power, and they open up possibilities for AI deployment in environments previously deemed impractical, like mobile units, remote locations, or disaster recovery sites. The continuous advancement of AI hardware is thus a foundational driver pushing the server market forward.
Global AI Server 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 AI server market report based on processor type, cooling technology, form factor, end use, and region.