Data center chips are specialized semiconductors that are designed to perform specific tasks in data centers. They are used in a variety of applications, including servers, storage systems, and networking equipment.

Data center chips are typically optimized for performance, efficiency, and reliability. They are also designed to work together seamlessly to create a high-performance computing environment.

Based on chip type, Data Center Chips market is divided into GPU, ASIC, FPGA, CPU and others.

Data Center Chips Market aims to provide a comprehensive presentation of the global market for Data Center Chips, with both quantitative and qualitative analysis, to help readers develop business/growth strategies, assess the market competitive situation, analyze their position in the current marketplace, and make informed business decisions regarding Data Center Chips. Data Center Chips Market contains market size and forecasts of Data Center Chips in global, including the following market information:

• Global Data Center Chips Market Revenue, 2018-2023, 2024-2032, ($ millions)
• Global Data Center Chips Market Sales, 2018-2023, 2024-2032, (K Units)
• Global top five Data Center Chips companies in 2022 (%)

The U.S. Market is Estimated at $ Million in 2022, While China is Forecast to Reach $ Million.

Graphics Processing Unit (GPU) Segment to Reach $ Million by 2029, with a % CAGR in next six years.

The global key manufacturers of Data Center Chips include AMD, Intel, Ampere, Arm Limited, Qualcomm, GlobalFoundries, TSMC, Samsung Electronics and Broadcom, etc. in 2022, the global top five players have a share approximately % in terms of revenue.

We surveyed the Data Center Chips manufacturers, suppliers, distributors and industry experts on this industry, involving the sales, revenue, demand, price change, product type, recent development and plan, industry trends, drivers, challenges, obstacles, and potential risks.

Data Center Chip Market Braces for Transformation Amid Soaring AI and Emerging Tech Adoption

The data center chip market is on the brink of transformation, with the increasing adoption of artificial intelligence (AI), machine learning, and cutting-edge technologies like quantum computing and neuromorphic chips. Research findings project a substantial surge in AI-related electricity consumption, potentially reaching 85.4–134.0 terawatt-hours (TWh) before 2027. This uptick adds to the growing demand on data center electricity, which currently constitutes up to two percent of global electricity usage. Quantum computing, neuromorphic chips, and optical chips are emerging as pivotal forces in this evolution, offering new dimensions of data processing power. Additionally, the data center chip market is witnessing expansion in emerging economies, compelling manufacturers to provide cost-effective and customized chip solutions. As specialized data center chip demand continues to rise, the industry faces the pressing challenge of enhancing energy efficiency and sustainability to meet the demands of a data-intensive world.

Total Market by Segment:

Global Data Center Chips Market, by Type, 2018-2023, 2024-2032 ($ Millions) (K Units)

Global Data Center Chips Market Segment Percentages, by Type, 2022 (%)

• Graphics Processing Unit (GPU)
• Application Specific Integrated Circuit (ASIC)
• Field Programmable Gate Array (FPGA)
• Central Processing Unit (CPU)
• Others

Global Data Center Chips Market, by Application, 2018-2023, 2024-2032 ($ Millions) (K Units)

Global Data Center Chips Market Segment Percentages, by Application, 2022 (%)

• Cloud Computing
• High-Performance Computing (HPC)
• Artificial Intelligence (AI) and Machine Learning (ML)
• Data Analytics
• Virtualization
• Edge Computing
• Others

Global Data Center Chips Market, by Application, 2018-2023, 2024-2032 ($ Millions) (K Units)

Global Data Center Chips Market Segment Percentages, by Architecture, 2022 (%)

• x86 Architecture
• ARM Architecture
• RISC-V Architecture
• Custom Architectures
• Hybrid Architectures

Global Data Center Chips Market, by End-User, 2018-2023, 2024-2032 ($ Millions) (K Units)

Global Data Center Chips Market Segment Percentages, by End-User, 2022 (%)

• BFSI
• Manufacturing
• Government
• IT Telecom
• Retail
• Transportation
• Energy Utilities
• Others

Rising Demand for Chips for Emerging Applications: The increased demand for specialized chips for AI, ML, and DL applications is driving innovation in data center chip design. These applications require high computational power and are pushing the boundaries of what traditional data center chips can provide.

Increasing Adoption of Specialized Chips: The adoption of specialized chips like GPUs and FPGAs is a response to the need for improved performance and efficiency. These chips are well-suited for specific workloads and contribute to the optimization of data center operations.

Shift to Heterogeneous Computing: The shift toward heterogeneous computing, combining different types of processors, reflects the quest for more efficient and powerful solutions. Heterogeneous computing can lead to performance gains by utilizing the strengths of each processor type for specific tasks.

Growing Demand for Energy-Efficient Chips: Energy efficiency is a critical concern for data centers due to their high energy consumption. Energy-efficient chips not only reduce operational costs but also contribute to environmental sustainability, making them increasingly important in the market.

Growth of the Edge Computing Market: Edge computing is changing the data center landscape, as it requires chips optimized for low-latency, real-time processing. This trend reflects the need for data center chips that can support decentralized computing closer to the data source.

Global Data Center Chips Market, By Region and Country, 2018-2023, 2024-2032 ($ Millions) (K Units)

Global Data Center Chips Market Segment Percentages, By Region and Country, 2022 (%)

• North America (United States, Canada, Mexico)
• Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, India, Japan, South Korea, Australia, Rest of APAC)
• The Middle East and Africa (Middle East, Africa)
• South and Central America (Brazil, Argentina, Rest of SCA)

Competitor Analysis

The report also provides analysis of leading market participants including:

• Key companies Data Center Chips revenues in global market, 2018-2023 (Estimated), ($ millions)
• Key companies Data Center Chips revenues share in global market, 2022 (%)
• Key companies Data Center Chips sales in global market, 2018-2023 (Estimated), (K Units)
• Key companies Data Center Chips sales share in global market, 2022 (%)

key players include:

• Intel Corporation
• Advanced Micro Devices (AMD)
• NVIDIA Corporation
• ARM Holdings
• Qualcomm
• IBM
• Fujitsu
• Cisco Systems
• Broadcom Inc.
• Mellanox Technologies
• Xilinx, Inc.
• Microchip Technology Inc. (formerly Microsemi)
• Marvell Technology Group
• Ampere
• Arm Limited
• GlobalFoundries
• TSMC (Taiwan Semiconductor Manufacturing Company)
• Samsung Electronics
• Huawei

Quantum Computing Chips: Pioneering Quantum Power for Data Centers Quantum computing, a groundbreaking technology rooted in the principles of quantum mechanics, promises to revolutionize the data center industry. It boasts the potential to tackle previously insurmountable challenges in areas like cryptography, optimization, and material science, issues that have stymied classical computers. Though quantum computing chips are still in their infancy, they signify a bright future. As quantum technology matures, data centers of tomorrow might seamlessly blend quantum processors with their traditional counterparts. This harmonious integration seeks to supercharge specific workloads by tapping into the extraordinary computational prowess of quantum processing, potentially unlocking novel solutions for complex problems.

Neuromorphic Chips: The AI Revolution’s Brainchild Neuromorphic chips, inspired by the intricate architecture and functioning of the human brain, promise to reshape the landscape of artificial intelligence (AI) and machine learning (ML) in data centers. These chips mimic neural networks, making them adept at tasks such as pattern recognition and cognitive computing, which are at the core of AI and ML applications. As neuromorphic chip technology evolves, data centers may embrace these chips to optimize AI and ML workloads, ushering in more efficient and intelligent data processing. These unique chips are poised to enhance the performance of AI-driven applications, ultimately enhancing data center efficiency.

Optical Chips: Illuminating Data Center Connectivity Optical chips herald a new era in data transmission and processing by harnessing the power of light instead of traditional electronic signals. Their potential lies in delivering significantly higher data transmission speeds while substantially improving energy efficiency. In the context of data centers, optical chips play a pivotal role in data interconnects and networking. Their adoption promises reduced latency, enhanced data transfer rates, and minimized energy consumption. These advancements collectively contribute to superior overall performance and efficiency within data centers, critical for the seamless operation of services like cloud computing and data-intensive analytics.

Chips for Emerging Markets: Tailored Solutions for Global Growth The data center chips market is rapidly expanding in emerging economies, including giants like China and India. These markets have distinct requirements influenced by factors like budget constraints and unique application needs. To meet these demands, data center chip manufacturers are adapting their strategies. This adaptation involves developing cost-effective chips customized for the specific demands of emerging markets. Manufacturers are also crafting chips optimized for niche applications, such as regional data center infrastructure and local language processing. By tailoring their product lines to the specific needs of these emerging markets, chip manufacturers stand to introduce new product offerings and expand their market presence. This positions them to seize opportunities presented by the burgeoning demand for data center infrastructure and services in these regions.

Recent Developments:

• In April 2023, Broadcom Inc. introduced the Unified Wire Engine, a chip enhancing AI supercomputer connectivity, fostering AI system performance and efficiency.
• September 2022 witnessed ARM’s launch of Neoverse V2, designed to meet the surge in data from 5G and IoT devices.
• August 2022 saw Intel’s introduction of the Intel Data Center GPU Flex Series, breaking siloed and proprietary constraints for data centers, resulting in improved throughput performance with lower power consumption.
• January 2023 marked Huawei’s launch of a 50G POL Prototype, elevating campus networks and offering future scalability.
• In March 2023, Marvell Technology released the Marvell Nova 1.6 Tbps PAM4 electro-optics platform, maximizing data movement speed for cloud AI/ML and data center networks.
• In December 2022, Taiwan Semiconductor Manufacturing Company began mass production of 3 nm chips, delivering increased capability and power efficiency compared to 5 nm chips.