PUBLISHER: TechSci Research | PRODUCT CODE: 1934263
PUBLISHER: TechSci Research | PRODUCT CODE: 1934263
We offer 8 hour analyst time for an additional research. Please contact us for the details.
The Global Enterprise Server Market is projected to experience substantial growth, expanding from USD 87.51 Billion in 2025 to USD 160.35 Billion by 2031, at a CAGR of 10.62%. These servers are specialized computing systems designed to manage large-scale network operations, storage, and data processing for organizations. The market is primarily underpinned by the essential need for scalable infrastructure to support the exponential growth of data and the ongoing broadening of cloud computing environments. Consequently, there is a persistent demand for high-performance hardware that ensures operational efficiency and business continuity. According to the Japan Electronics and Information Technology Industries Association, global production within the IT and electronics industries was forecast to rise by 9 percent to 3.7 trillion dollars in 2024, a growth trajectory largely driven by the increasing need for high-performance servers and data center equipment.
| Market Overview | |
|---|---|
| Forecast Period | 2027-2031 |
| Market Size 2025 | USD 87.51 Billion |
| Market Size 2031 | USD 160.35 Billion |
| CAGR 2026-2031 | 10.62% |
| Fastest Growing Segment | SMEs |
| Largest Market | Asia Pacific |
However, the market faces a significant obstacle in the form of rising operational costs linked to energy consumption. As enterprises implement powerful servers to handle intensive workloads, the electricity required for both powering and cooling these systems has risen considerably. This situation presents financial and sustainability challenges that compel organizations to balance their performance requirements with energy efficiency. Such pressures can potentially delay infrastructure upgrades and limit the pace of new deployments as companies navigate the trade-offs between processing power and operational expenses.
Market Driver
The rapid adoption of artificial intelligence and generative AI workloads serves as a primary catalyst for the enterprise server market. Organizations are aggressively upgrading their infrastructure to accommodate large language models, driving a need for servers fitted with advanced graphics processing units and high-bandwidth memory. This trend signifies a shift from traditional general-purpose units toward accelerated computing systems capable of parallel processing. The economic impact of this transition is reflected in manufacturer performance; for instance, Dell Technologies reported in August 2024 that revenue from servers and networking jumped 80 percent to 7.7 billion dollars in the second quarter of fiscal 2025, a surge attributed chiefly to the demand for AI-optimized servers. This reflects a broader industry realignment where capital is increasingly allocated to high-performance architectures designed for training and inference tasks.
Market momentum is further sustained by the rapid expansion of cloud infrastructure and hyperscale data centers, as major technology providers scale operations to satisfy global computing needs. Hyperscalers are building massive facilities that require extensive rack-scale server deployments to ensure resilient storage solutions and cloud services, with a focus on thermal efficiency and operational density. Highlighting this investment scale, Alphabet reported in October 2024 that third-quarter capital expenditures reached 13 billion dollars, with servers and storage representing the largest share of this technical infrastructure spending. Similarly, Hon Hai Precision Industry Co (Foxconn) noted that in the third quarter of 2024, revenue from AI servers comprised over 40 percent of its total server business, underscoring the critical role of contract manufacturing in fulfilling these global infrastructure demands.
Market Challenge
A major barrier to the growth of the Global Enterprise Server Market is the escalating operational cost associated with energy consumption. As organizations deploy high-performance servers to manage demanding workloads, the electricity needed for operation and essential cooling infrastructure increases dramatically. This surge in power usage forces enterprises to divert vital financial resources from capital expenditures, such as acquiring new hardware, toward operational expenditures dedicated to utility payments. Consequently, budget limitations often compel companies to extend the lifecycles of legacy systems or postpone planned infrastructure upgrades, which directly reduces the volume of new server shipments and slows overall market revenue growth.
Data from AFCOM in 2024 reinforces this issue, revealing that 62 percent of data center professionals identified rising energy costs as the primary factor driving up operational expenditures. This statistic underscores the direct link between power consumption and financial strain, demonstrating how energy overheads deplete budgets that would otherwise fund market expansion. When organizations are forced to prioritize the financial sustainability of current operations over capacity growth, the demand for new enterprise servers stagnates, effectively dampening the market's momentum despite the clear necessity for advanced computing power.
Market Trends
The accelerated adoption of liquid cooling solutions is transforming data center infrastructure to better manage the thermal output of high-density racks. With power densities often exceeding 50 kilowatts per rack and surpassing the limits of traditional air-cooling, organizations are shifting toward direct-to-chip and immersion cooling technologies to maintain system stability and reduce energy overhead. This transition is moving beyond niche supercomputing applications into mainstream enterprise environments, driving significant revenue growth for hardware providers that integrate these thermal management systems. For example, Lenovo Group Limited reported in May 2025 that its Infrastructure Solutions Group achieved a 63 percent year-on-year revenue increase to a record 14.5 billion dollars, a performance attributed to the hyper-growth of AI servers and the expansion of its Neptune liquid cooling technology into broader vertical industries.
Concurrently, the increasing market penetration of ARM-based server architectures represents a fundamental diversification in compute strategy, challenging the long-standing dominance of x86 processors. Cloud service providers and enterprises are increasingly deploying custom silicon based on ARM designs to achieve higher energy efficiency and optimized performance for specific cloud-native workloads. This architectural shift allows data centers to maximize core counts and processing throughput per watt, a critical metric for sustainable scaling in power-constrained environments. According to Arm Holdings plc, in March 2025, total group revenues reached 4,007 million dollars for the fiscal year, a growth trajectory driven principally by the rising demand for energy-efficient compute capabilities and the increased deployment of the latest Armv9 technology in cloud data center servers.
Report Scope
In this report, the Global Enterprise Server Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in the Global Enterprise Server Market.
Global Enterprise Server Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: