Global Data Center Chip Market was Valued at US$ 11.77 Billion in 2022, Growing at an Estimated CAGR of 14.4% from 2023-2031.

A data center chip is a specialized integrated circuit designed for data processing and storage tasks within a data center. It powers servers and network equipment, optimizing data handling, and enhancing performance. These chips are crucial for efficient and fast data management in large-scale computing environments like the US.

In the global data center chip market, CPUs segment dominates the landscape due to their versatility and widespread use in various applications. CPUs handle a wide range of tasks and remain the backbone of data center processing.

Global Data Center Chip Market Revenue & Forecast, (US$ Million), 2015 – 2031

COVID-19 Impact Analysis on Global Data Center Chip Market

Pre-COVID-19, the data center chip market was steadily expanding, driven by increasing data demands, cloud computing, and emerging technologies like AI and 5G. However, the pandemic accelerated digital transformation, amplifying the demand for data center infrastructure. Post-COVID-19, this market witnessed even greater growth as remote work, online services, and data-intensive applications became the norm, emphasizing the critical role of data center chips in supporting the surge in digital activity globally.

Report Coverage and Deliverables

The growing demand for cloud computing services is a significant driver of the data center chip market. This surge in cloud adoption is propelling the need for advanced data center chips to support the infrastructure required for these services. As businesses and consumers increasingly rely on cloud-based applications and storage, this trend is expected to sustain the demand for data center chips, particularly in the US.

Energy consumption and environmental concerns pose a restraint on the data center chip market. Data centers are notorious for their high energy usage, accounting for about 1-2% of global electricity consumption, as per the International Energy Agency. This energy-intensive nature has raised concerns about carbon emissions. To address this issue, data centers are adopting energy-efficient chips and cooling solutions. However, the transition to greener data centers remains a challenge, as significant investments are needed to achieve sustainability goals while maintaining performance standards.

In the global data center chip market, the IT and Telecom industry vertical dominates due to the continuous expansion of data centers to meet increasing data demands. This is reinforced by a report from Cisco, indicating that global IP traffic is expected to triple from 2021 to 2026. As IT and Telecom rely heavily on data center infrastructure for services, their dominance is well-established.

North America dominated the global data center chip market in 2022. The US, home to major data center operators and tech giants like Amazon, Google, and Microsoft, plays a pivotal role in driving data center chip demand. Statistics from datacentermap.com show that North America houses over 40% of the world’s data centers, underlining its dominance.

Competitive Landscape

The report provides both, qualitative and quantitative research of global data center chip market, as well as provides comprehensive insights and development methods adopted by the key contenders. The report also offers extensive research on the key players in this market and details on the competitiveness of these players. Key business strategies such as mergers and acquisitions (M&A), affiliations, collaborations, and contracts adopted by these major market participants are also recognized and analyzed in the report. For each company, the report studies their global presence, competitors, service offerings and specification amongst others.

Some of the key companies operating in the global data center chip market are:

• Advanced Micro Devices, Inc.
• Arm Limited
• Broadcom
• GlobalFoundries
• Huawei Technologies Co., Ltd.
• Intel Corporation
• NVIDIA Corporation
• Qualcomm Technologies, Inc.
• Samsung
• Taiwan Semiconductor Manufacturing Company Limited
• Other Industry Participants

Report Summary of Global Data Center Chip Market

Global Data Center Chip Market:

By Chip Type

• GPU
• ASIC
• FPGA
• CPU
• Others

By Data Center Size

• Small and Medium Size
• Large Size

By Industry Vertical

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

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

Table of Contents

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**Exclusive for Multi-User and Enterprise User.

Global Data Center Chip Market:

By Chip Type

By Data Center Size

By Industry Vertical

By Region

**Note: The report covers cross-segmentation analysis by region further into countries

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The Niche Research approach encompasses both primary and secondary research methods to provide comprehensive insights. While primary research is the cornerstone of our studies, we also incorporate secondary research sources such as company annual reports, premium industry databases, press releases, industry journals, and white papers.

Within our primary research, we actively engage with various industry stakeholders, conducting paid interviews and surveys. Our meticulous analysis extends to every market participant in major countries, allowing us to thoroughly examine their portfolios, calculate market shares, and segment revenues.

Our data collection primarily focuses on individual countries within our research scope, enabling us to estimate regional market sizes. Typically, we employ a bottom-up approach, meticulously tracking trends in different countries. We analyze growth drivers, constraints, technological innovations, and opportunities for each country, ultimately arriving at regional figures.Our process begins by examining the growth prospects of each country. Building upon these insights, we project growth and trends for the entire region. Finally, we utilize our proprietary model to refine estimations and forecasts.

Our data validation standards are integral to ensuring the reliability and accuracy of our research findings. Here’s a breakdown of our data validation processes and the stakeholders we engage with during our primary research:

• Supply Side Analysis: We initiate a supply side analysis by directly contacting market participants, through telephonic interviews and questionnaires containing both open-ended and close-ended questions. We gather information on their portfolios, segment revenues, developments, and growth strategies.
• Demand Side Analysis: To gain insights into adoption trends and consumer preferences, we reach out to target customers and users (non-vendors). This information forms a vital part of the qualitative analysis section of our reports, covering market dynamics, adoption trends, consumer behavior, spending patterns, and other related aspects.
• Consultant Insights: We tap into the expertise of our partner consultants from around the world to obtain their unique viewpoints and perspectives. Their insights contribute to a well-rounded understanding of the markets under investigation.
• In-House Validation: To ensure data accuracy and reliability, we conduct cross-validation of data points and information through our in-house team of consultants and utilize advanced data modeling tools for thorough verification.

The forecasts we provide are based on a comprehensive assessment of various factors, including:

• Market Trends and Past Performance (Last Five Years): We accurately analyze market trends and performance data from preceding five years to identify historical patterns and understand the market’s evolution.
• Historical Performance and Growth of Market Participants: We assess the historical performance and growth trajectories of key market participants. This analysis provides insights into the competitive landscape and individual company strategies.
• Market Determinants Impact Analysis (Next Eight Years): We conduct a rigorous analysis of the factors that are projected to influence the market over the next eight years. This includes assessing both internal and external determinants that can shape market dynamics.
• Drivers and Challenges for the Forecast Period:Identify the factors expected to drive market growth during the forecast period, as well as the challenges that the industry may face. This analysis aids in deriving an accurate growth rate projection.
• New Acquisitions, Collaborations, or Partnerships: We keep a close watch on any new acquisitions, collaborations, or partnerships within the industry. These developments can have a significant impact on market dynamics and competitiveness.
• Macro and Micro Factors Analysis:A thorough examination of both macro-level factors (e.g., economic trends, regulatory changes) and micro-level factors (e.g., technological advancements, consumer preferences) that may influence the market during the forecast period.
• End-User Sentiment Analysis: To understand the market from the end-user perspective, we conduct sentiment analysis. This involves assessing the sentiment, preferences, and feedback of the end-users, which can provide valuable insights into market trends.
• Perspective of Primary Participants: Insights gathered directly from primary research participants play a crucial role in shaping our forecasts. Their perspectives and experiences provide valuable qualitative data.
• Year-on-Year Growth Trend: We utilize a year-on-year growth trend based on historical market growth and expected future trends. This helps in formulating our growth projections, aligning them with the market’s historical performance.

Research process adopted by TNR involves multiple stages, including data collection, validation, quality checks, and presentation. It’s crucial that the data and information we provide add value to your existing market understanding and expertise. We have also established partnerships with business consulting, research, and survey organizations across regions and globally to collaborate on regional analysis and data validation, ensuring the highest level of accuracy and reliability in our reports.