Data Center Server Market to Surpass $307 Billion by 2030, Driven by AI and Cloud Adoption

(MENAFN- P&S Intelligence) According to the latest market research study published by P&S Intelligence, the global data center server market is rapidly advancing, having generated USD 139.1 billion in revenue in 2023. With the growing demands for high-performance computing, increased cloud adoption, and digital transformation across industries, the market is projected to reach USD 307.0 billion by 2030, reflecting a compelling CAGR of 11.6%. Key drivers of this growth include the accelerating deployment of AI and ML technologies in server operations, the emergence of 5G connectivity, and the widespread integration of cloud platforms in enterprise workflows.

As businesses strive to keep up with skyrocketing data volumes—expected to hit 175 zettabytes globally by 2025—demand for robust server infrastructure is intensifying. The transition to smarter, faster, and scalable server architectures is crucial for managing the surge in online activity, particularly in sectors like healthcare, BFSI, and telecom. Moreover, the evolution of internet infrastructure and the proliferation of smart devices are further fueling the market, as enterprises require efficient and cost-effective server solutions to support evolving workloads.

Key Insights

• Rack servers led the market with a 60% share in 2023, favored for their compact form, high airflow design, and general-purpose capabilities suitable for SMEs and enterprise-level deployments.

• Tower servers are expected to grow significantly due to their affordability, cooling efficiency, ease of upgrade, and powerful computational abilities.

• The commercial sector is set to experience robust expansion, driven by digital integration, increased startup activities, and compliance with stringent data privacy regulations.

• The BFSI segment held a 45% share in 2023, fueled by the sector’s need for secure, scalable server solutions to manage sensitive financial and personal data.

• The healthcare industry is projected to invest USD 79.23 billion in big data analytics by 2028, contributing to increasing demand for advanced data center servers to support data-heavy applications such as telemedicine and digital diagnostics.

• North America dominated the market with a 40% revenue share in 2023, owing to a well-developed IT ecosystem, significant technological adoption, and the presence of global tech leaders.

• The U.S. remains the top contributor within North America, supported by a dense network of data centers and consistent investment in AI-driven infrastructure.

• Asia-Pacific and Middle East regions are experiencing a surge in digitalization, prompting new data center builds and higher adoption of high-density server technologies.

• Increasing interconnectivity between global data centers, especially through internet exchanges, is enhancing data flow and necessitating more advanced server installations.

• Government initiatives encouraging data localization and digital governance are driving investments in public sector data centers across emerging economies.

• The IT & telecom industry is expanding its reliance on data center servers, propelled by widespread mobile internet use, IoT proliferation, and 5G deployment.

• Server providers are increasingly incorporating AI-powered systems to automate operations, enable predictive maintenance, and optimize resource allocation within data centers.

• Rapid data generation—over 2.5 quintillion bytes daily—has led to a massive increase in enterprise demand for data storage and real-time processing capabilities.

• Data center servers are becoming central to managing global digital infrastructure, providing the backbone for cloud computing, big data analytics, and remote work technologies.

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