Data Center GPU Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, UK, China, Germany, Canada, Japan, France, India, South Korea, Brazil - Size and Forecast 2025-2029

Data Center GPU Market Size 2025-2029

The data center gpu market size is forecast to increase by USD 54.08 billion, at a CAGR of 32.9% between 2024 and 2029.

• The market is experiencing significant growth, driven by the increasing adoption of multi-cloud architectures and network upgrades to support the rollout of 5G technology. Advanced server technologies are being developed to accommodate machine learning (ML) and deep learning (DL) applications, further fueling market expansion. However, the high initial costs and extended lead times for constructing new data centers pose a substantial challenge for market participants.
• Companies must carefully consider these factors and devise strategies to mitigate costs and streamline construction processes to capitalize on the opportunities presented by this dynamic market. Navigating these challenges while staying abreast of technological advancements and evolving customer needs will be crucial for success in the market.

What will be the Size of the Data Center GPU Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.  
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The market continues to evolve, driven by the expanding applications in various sectors. Scientific computing and high-performance computing require massive processing power, leading to the increasing adoption of GPUs. Operating systems are integrating GPU support for enhanced functionality, while air cooling and liquid cooling solutions address power efficiency concerns. Virtual reality and augmented reality applications demand high memory bandwidth and CUDA cores for realistic rendering. Financial modeling and data analytics rely on GPUs for faster computation and network virtualization for improved latency. GPU virtualization enables resource pooling and efficient utilization, while single precision and mixed precision processing cater to different use cases.

Power consumption remains a significant challenge, leading to the development of cooling solutions and server optimizations. Parallel processing, including tensor cores and double precision, powers machine learning and deep learning algorithms. Half precision and clock speed optimizations aim to reduce power consumption without compromising performance. Server farms and blade servers are adopting GPU acceleration for improved processing capabilities. Network virtualization and data center infrastructure upgrades facilitate seamless integration of GPUs into the ecosystem. Processing power remains a critical factor as big data and AI inference continue to drive market growth. Programming languages and driver software adapt to these advancements, ensuring optimal performance.

How is this Data Center GPU Industry segmented?

The data center gpu industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Deployment
  • On-premises
  • Cloud
• Type
  • Training
  • Inference
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • UK
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • South America
    • Brazil
  • Rest of World (ROW)

By Deployment Insights

The on-premises segment is estimated to witness significant growth during the forecast period.

Data center GPUs, a crucial component of high-performance computing, play a significant role in powering applications in various industries, including high-frequency trading, machine learning, deep learning, scientific computing, and financial modeling. On-premises data center GPUs, consisting of servers owned and managed by the end-user, offer advantages for compute-intensive applications that require high processing power, low latency, and access to advanced technologies, such as deep learning and scientific computing. However, the rise of cloud computing and colocation providers has led to the emergence of cloud-based GPU services, enabling users to access GPU resources on a pay-per-use basis. This shift towards cloud-based solutions offers cost savings and flexibility, making it an attractive alternative to on-premises infrastructure.

Additionally, advancements in GPU virtualization, power efficiency, and cooling solutions have further bolstered the adoption of cloud-based GPUs for applications like AI inference, video rendering, and data analytics. With the increasing demand for processing power in areas like big data, high-performance computing, and emerging technologies like virtual reality, augmented reality, and edge computing, the market for data center GPUs continues to evolve, offering significant opportunities for growth.

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The On-premises segment was valued at USD 2.71 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 34% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in North America is experiencing significant growth due to the increasing adoption of cloud computing by enterprises. This trend is particularly prominent in the US and Canada, where businesses are seeking to reduce operating and capital expenditures by migrating to cloud services from hyper-scale data center providers such as AWS, Microsoft, and Oracle. The region's data center market is further propelled by the rising demand for high-performance computing (HPC) systems in sectors like government, BFSI, healthcare, and others. Cloud computing's popularity is driven by its ability to offer scalable and flexible computing resources, enabling enterprises to meet their computing capacity requirements efficiently.

Additionally, the adoption of artificial intelligence (AI) and machine learning (ML) technologies in various industries, including finance, healthcare, and research, is fueling the demand for GPUs in data centers. The need for low network latency and high-speed AI inference is driving the adoption of GPUs in data centers. Moreover, the increasing popularity of virtual reality (VR), augmented reality (AR), and mixed reality applications is expected to further boost the demand for GPUs in data centers. Power efficiency and cooling solutions are critical factors in the market. Air cooling and liquid cooling are the most common cooling solutions used in data centers.

Power consumption is also a significant concern, with the need for power-efficient GPUs becoming increasingly important. Data center infrastructure is evolving, with the adoption of server farms, blade servers, and rackmount servers. GPU virtualization and parallel processing are essential technologies for maximizing the utilization of GPU resources in data centers. The use of GPUs in scientific computing, financial modeling, and video rendering applications is also on the rise. Operating systems, driver software, and programming languages are crucial components of the data center GPU ecosystem. In conclusion, the North American the market is witnessing significant growth due to the increasing adoption of cloud computing, HPC systems, and AI/ML technologies.

The need for low latency, high-speed AI inference, and power-efficient GPUs is driving the market's evolution. Cooling solutions, GPU virtualization, and parallel processing are essential technologies for optimizing GPU utilization in data centers.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is a dynamic and evolving sector that caters to the insatiable demand for high-performance computing in modern businesses. This market is fueled by the increasing adoption of artificial intelligence, machine learning, and deep learning applications, which require massive computational power. Data center GPUs, specifically designed for this purpose, offer significant advantages such as parallel processing, high memory bandwidth, and energy efficiency. These advanced features enable data centers to handle complex workloads, including video rendering, scientific simulations, and financial modeling. Additionally, the growing trend towards cloud computing and edge computing further expands the scope of the market. Other key aspects of this market include virtualization, liquid cooling, and GPU clusters, all of which contribute to the optimization and scalability of data center infrastructure. Ultimately, the market is poised for continued growth, driven by the relentless pursuit of innovation and the ever-increasing need for faster, more efficient data processing.

What are the key market drivers leading to the rise in the adoption of Data Center GPU Industry?

• The increasing implementation of multi-cloud solutions and network upgrades is essential for supporting the deployment of 5G technology, serving as the primary market driver. 

• In today's digital landscape, businesses are increasingly relying on advanced technologies such as high-frequency trading, machine learning, and deep learning to gain a competitive edge. To support these data-intensive workloads, there is a growing demand for Data Center GPUs. These specialized processors are designed to handle complex computations, enabling applications like AI inference, network latency reduction, and video rendering. Multi-cloud, a strategy involving the use of multiple cloud computing services, is gaining popularity among enterprises. This approach allows businesses to prevent data loss or downtime, ensure regulatory compliance, and meet varying workload requirements. With global investments in public cloud services projected to reach around USD450-500 billion in 2022, there is a significant push to move mission-critical applications to the public cloud.
• Data Center GPUs play a crucial role in this landscape. They offer power efficiency and harmonious integration with data center infrastructure. However, the successful implementation of these GPUs requires robust driver software and immersive testing to ensure seamless integration and optimal performance. In summary, the adoption of advanced technologies and the shift towards multi-cloud strategies are driving the demand for Data Center GPUs. These processors, with their power efficiency and ability to handle complex computations, are essential for businesses looking to stay competitive in today's digital world.

What are the market trends shaping the Data Center GPU Industry?

• The current market trend reflects a significant focus on advancements in server technology to accommodate machine learning (ML) and deep learning (DL) applications. These technological advancements are essential for supporting the growing demand for data-intensive AI solutions.

• The market is witnessing significant growth due to the increasing demand for advanced data analysis models in enterprises. With the adoption of big data, machine learning, and deep learning technologies, the volume of data being generated and analyzed is expanding rapidly. Traditional x86 servers are unable to handle the heavy workloads of high-performance computing (HPC) applications, leading to the need for more powerful server solutions. To address this challenge, market companies are introducing servers equipped with field-programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), and GPUs. These servers offer enhanced computation power and are designed to cater to the unique requirements of HPC workloads in scientific computing, financial modeling, virtual reality, and other data-intensive applications.
• Moreover, the integration of GPUs in data center servers enables advanced features like CUDA cores, high memory bandwidth, GPU virtualization, and network virtualization. These features enable efficient data processing, faster computation times, and improved system performance. The adoption of liquid cooling systems in data centers further enhances the efficiency and reliability of GPU servers. In conclusion, the market is poised for growth as enterprises continue to seek more powerful and efficient solutions for handling complex data analysis workloads. The integration of advanced technologies like FPGAs, ASICs, and GPUs in servers is driving innovation and providing enterprises with the tools they need to gain valuable insights from their data.

What challenges does the Data Center GPU Industry face during its growth?

• The high initial costs and prolonged lead times associated with data center construction pose a significant challenge to the industry's growth trajectory. 

• The market is experiencing significant growth due to the increasing demand for parallel processing in server farms, including blade servers and rackmount servers. GPU acceleration is becoming a necessity for handling complex workloads in applications such as augmented reality, edge computing, big data, and artificial intelligence. However, the market faces challenges related to power consumption and cooling solutions, which are crucial for maintaining optimal performance and efficiency. Delays in establishing data centers can occur due to various factors, including government regulations, public opposition, financing difficulties, weather conditions, industrial accidents, and labor disputes.
• These factors can impact the market's growth and profitability. Despite these challenges, the market is expected to continue expanding due to the increasing need for high-performance computing in various industries. Data centers are a significant investment, with costs reaching billions of dollars. Time to market and costs per megawatt are critical factors in the design and construction process. Meeting contractual schedules and performance requirements is essential for the growth of the market. It is important for stakeholders to address the challenges and find innovative solutions to ensure timely and cost-effective data center establishment.

Exclusive Customer Landscape

The data center gpu market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the data center gpu market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, data center gpu market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Advanced Micro Devices Inc. - The company specializes in providing advanced data center GPU solutions, including AMD EPYC, AMD Instinct, AMD Versal, AMD Alveo, and AMD Pensando. These technologies deliver superior performance and efficiency for data-intensive workloads, enabling organizations to drive innovation and gain a competitive edge. AMD's GPU offerings cater to diverse industries, from scientific research and finance to media and entertainment, ensuring versatility and adaptability. By integrating these cutting-edge solutions, businesses can enhance their infrastructure, optimize operations, and ultimately, achieve greater success.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Advanced Micro Devices Inc.
• Advantech Co. Ltd.
• Broadcom Inc.
• Fujitsu Ltd.
• Gigabyte Technology Co. Ltd.
• Google LLC
• Huawei Technologies Co. Ltd.
• Imagination Technologies Ltd.
• Intel Corp.
• International Business Machines Corp.
• Micron Technology Inc.
• NVIDIA Corp.
• Qualcomm Inc.
• Samsung Electronics Co. Ltd.
• SAPPHIRE Technology Ltd.
• Zotac Technology Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Data Center GPU Market

• In January 2024, NVIDIA, a leading technology company, announced the launch of its new A100 GPU, designed specifically for data centers. This GPU, with its improved performance and power efficiency, was expected to revolutionize AI and high-performance computing workloads (NVIDIA Press Release).
• In March 2024, IBM and NVIDIA entered into a strategic partnership to deliver AI-powered cloud services using NVIDIA GPUs. This collaboration aimed to accelerate AI innovation and provide businesses with advanced computing capabilities (IBM Press Release).
• In May 2024, AMD, a major competitor in the GPU market, raised USD1 billion in an equity offering. The funds were intended to fuel research and development efforts, particularly in the data center GPU segment (AMD Securities Filing).
• In April 2025, Google Cloud Platform announced the availability of its new GPU instances, powered by NVIDIA's A100 GPUs. This expansion enabled customers to run their machine learning and high-performance computing workloads more efficiently on Google Cloud (Google Cloud Blog).

Research Analyst Overview

• The GPU market in data centers is experiencing significant growth, driven by the increasing demand for fault tolerance and advanced computing capabilities. Artificial intelligence accelerators, including GPUs, are revolutionizing industries such as weather forecasting, remote sensing, and object detection, necessitating the deployment of multi-GPU systems. Computational fluid dynamics, speech recognition, medical imaging, and natural language processing are some of the applications benefiting from this technology. However, the complexity of these systems requires robust maintenance schedules and lifecycle management strategies. Data center automation and IT infrastructure management are crucial for ensuring energy efficiency and capacity planning. Power supply units and GPU interconnects play a vital role in maintaining the performance of these systems.
• Moreover, the integration of blockchain technology, cryptocurrency mining, and seismic processing in data centers is expanding the market's scope. Remote rendering, cloud security, and remote monitoring are other areas of growth. Heterogeneous computing and green computing are essential considerations for reducing environmental impact and optimizing performance. Energy efficiency standards and data security are critical concerns for businesses adopting GPU technology. Precision computing and image recognition are applications with high demand, requiring deployment strategies that balance cost, performance, and scalability. In summary, the market is dynamic, with trends leaning towards fault tolerance, advanced computing, and energy efficiency.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Data Center GPU Market insights. See full methodology.

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What are the Key Data Covered in this Data Center GPU Market Research and Growth Report?

• CAGR of the Data Center GPU industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the data center gpu market growth of industry companies

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