LAMEA AI Server Market Size, Share & Industry Analysis Report By Processor Type (GPU-based Servers, FPGA-based Servers, and ASIC-based Servers), By Cooling Technology (Air Cooling, Liquid Cooling, and Hybrid Cooling), By Form Factor (Rack-mounted Servers, Blade Servers, and Tower Servers), By End Use, By Country and Growth Forecast, 2025 - 2032

Analysis of Market Size & Trends

The Latin America, Middle East and Africa AI Server Market would witness market growth of 40.0% CAGR during the forecast period (2025-2032).

The Brazil market dominated the LAMEA AI Server Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $34,853.6 million by 2032. The Argentina market is showcasing a CAGR of 41.9% during (2025 - 2032). Additionally, The UAE market would register a CAGR of 38.6% during (2025 - 2032).

The Latin America, Middle East, and Africa (LAMEA) region has witnessed a significant transformation in its AI server market, driven by a combination of governmental initiatives, technological advancements, and increased demand across various sectors. Countries like Brazil, the United Arab Emirates (UAE), and South Africa have emerged as key players, investing heavily in AI infrastructure to bolster their digital economies. In Brazil, the government's commitment to digital transformation has led to substantial investments in AI infrastructure. The country's focus on enhancing its technological capabilities is evident in its support for AI-driven projects across healthcare, agriculture, and finance sectors.

Similarly, the UAE has launched the UAE Strategy for Artificial Intelligence 2031, aiming to position itself as a global leader in AI by integrating it into various sectors, including transportation, healthcare, and education. This strategy emphasizes the development of AI infrastructure, including the deployment of advanced AI servers to support large-scale data processing and analytics. The evolution of the AI server market in LAMEA is also marked by the increasing involvement of Original Equipment Manufacturers (OEMs) and technology firms. Companies like Dell Technologies and Hewlett Packard Enterprise (HPE) have expanded their operations in the region, offering AI-optimized server solutions tailored to local needs.

LAMEA AI Server Market Trends

The LAMEA region—comprising Latin America, the Middle East, and Africa—is increasingly becoming a strategic frontier for AI server infrastructure. While still trailing mature markets in North America, Europe, and parts of Asia, LAMEA is witnessing a rapid adoption of AI servers driven by government-led digital transformation agendas, cloud provider expansion, and the rise of sovereign compute infrastructure in energy, healthcare, security, and public services.

1. Middle East: Sovereign AI Infrastructure and Hypercloud Growth

The Gulf nations—particularly the United Arab Emirates (UAE) and Saudi Arabia—are leading the Middle East’s push into AI infrastructure:

• In 2024, Saudi Arabia’s PIF (Public Investment Fund) backed the creation of SCAI (Saudi Company for Artificial Intelligence), which launched sovereign AI server farms to support domestic LLMs, Arabic NLP, and smart city projects under Vision 2030.
• The UAE’s G42 Group has partnered with Microsoft and Cerebras to deploy AI supercomputing clusters featuring wafer-scale servers designed for national security and Arabic generative AI use cases. These systems are operational at facilities such as the Inception Institute of Artificial Intelligence in Abu Dhabi.
• Microsoft is investing over $1.5 billion to establish data centers across the region, including an AI-dedicated zone in the UAE aligned with local compliance regulations. The infrastructure is powered by renewable energy and supports Azure OpenAI services in the region.

These developments reflect a strategic shift from cloud consumption to national AI infrastructure ownership, which is heavily server-reliant.

2. Africa: AI Infrastructure for Public Services and Innovation Hubs

Sub-Saharan African countries are entering the AI server market through international partnerships, startup ecosystems, and academic research initiatives:

• South Africa has positioned itself as the continent’s most mature AI compute hub. Universities such as University of Pretoria and Stellenbosch University operate GPU-rich clusters used in health diagnostics, agriculture, and linguistics.
• In 2024, Amazon Web Services launched its Cape Town region to support African AI developers and public-sector applications—its infrastructure includes AI-optimized EC2 instances and elastic inference tools.
• NVIDIA has extended GPU donation programs to African institutions through its AI Nations partnership, seeding small-scale AI server deployments in Kenya, Nigeria, and Rwanda.
• Government-backed programs like Kenya’s National Artificial Intelligence Strategy emphasize building indigenous compute capacity, particularly for language technologies and agricultural prediction tools.

The region is also home to startup-led AI labs (e.g., Data Science Nigeria, iCog Labs Ethiopia) that operate micro data centers powered by modular AI servers.

State of Competition in the LAMEA AI Server Market

The LAMEA (Latin America, Middle East, and Africa) region presents a unique and increasingly dynamic competitive environment in the AI server market. Characterized by sovereign infrastructure initiatives, expanding cloud presence, and infrastructure modernization across emerging economies, the region is witnessing a multi-directional competitive wave from global tech giants, regional cloud providers, and government-backed innovation programs.

1. Middle East: Sovereign AI Compute as a Strategic Asset

The Middle East, particularly Saudi Arabia and the United Arab Emirates (UAE), is leading the competitive charge through government-led AI infrastructure programs:

• In Saudi Arabia, the Saudi Data and AI Authority (SDAIA) and SCAI (Saudi Company for AI) are deploying national AI clusters backed by local data centers. These servers support LLM training in Arabic and power Vision 2030 initiatives across education, healthcare, and defense.
• The UAE has partnered with U.S. and Chinese vendors to scale AI compute. G42, in collaboration with Cerebras Systems, operates one of the world’s largest AI supercomputers using wafer-scale AI chips, built in Abu Dhabi.
• Microsoft, in early 2025, committed over $1.5 billion to expand sovereign AI cloud zones in the UAE, deploying Azure services and in-house Maia AI chips in compliance with local regulations.

The competitive landscape here is dominated by sovereign data control, bilingual (Arabic-English) LLM training, and vendor alignment with national strategies.

2. Africa: Public Sector Compute and Cloud-Startup Collaboration

Africa is gradually emerging as a future-ready AI server market, led by South Africa, Nigeria, Kenya, and Egypt:

• South Africa hosts the region’s most mature AI infrastructure, with AWS Cape Town Region offering AI-optimized EC2 instances and partnerships with local research labs.
• Public universities like Stellenbosch University and University of Pretoria operate GPU clusters for AI applications in health diagnostics, biodiversity, and climate modeling.
• Data Science Nigeria and iCog Labs (Ethiopia) are startup-led AI labs leveraging affordable AI server access via partnerships with NVIDIA and cloud providers to run NLP, vision, and fintech models tailored for local challenges.
• Power reliability remains a competitive constraint; as a result, several edge server projects in Kenya and Ghana are deploying solar-powered micro data centers for local inferencing.

The African competitive environment is community-centric, cost-sensitive, and increasingly decentralized—favoring modular AI server deployments with open-source support.

Processor Type Outlook

Based on the Processor Type, the AI server market is segmented into GPU-based, FPGA-based, and ASIC-based servers. The GPU-Based Servers held the major market share among all the processor types in 2024 followed by FPGA-based Servers.

1. GPU-Based Servers

Trend: The LAMEA region is witnessing a significant push towards GPU-based AI servers, driven by collaborations between global tech giants and local enterprises to enhance AI capabilities.

Supporting News:

• NVIDIA's RTX Pro Servers Deployment: NVIDIA has announced the deployment of RTX Pro servers powered by the new RTX Pro 6000 Blackwell Server Edition GPUs. These servers are designed to accelerate enterprise AI workloads, including agentic AI, simulation, and digital twins. The initiative includes partnerships with global OEMs like Dell Technologies, Lenovo, and Cisco, facilitating the adoption of GPU-accelerated infrastructure in various regions, including LAMEA.

2. FPGA-Based Servers

Trend: FPGA-based servers are gaining traction in the LAMEA region, particularly for applications requiring customizable and energy-efficient AI processing solutions.

Supporting News:

• Positron's FPGA-Based Atlas Servers: Positron has raised $23.5 million to advance its FPGA-based Atlas servers, which are already being shipped to data centers and neoclouds. These servers offer over 93% bandwidth utilization and 70% faster inference at 66% lower power consumption compared to traditional GPU setups, making them an attractive option for sustainable AI infrastructure.

Cooling Type Outlook

Based on Cooling Technology, the market is segmented into Air Cooling, Liquid Cooling, and Hybrid Cooling.

1. Air Cooling

Trend: Widespread implementation in emerging LAMEA data centers, especially in Latin America, utilizing ambient air and evaporative techniques to manage rack-level heat efficiently and sustainably.

To illustrate:

• ODATA’s proprietary air-cooling rollout in Latin America: ODATA (Aligned Data Centers) introduced its patent-pending Delta3 air-cooling system across Brazilian and regional facilities. The design optimizes high-density rack cooling through improved airflow and reduces energy and space needs.

2. Liquid Cooling

Trend: Adoption of liquid-cooled and immersion systems is accelerating in data centers across Africa and Latin America, driven by the need to support high-density AI workloads and reduce energy consumption.

To illustrate:

• LiquidStack Coolant Distribution Unit (CDU) launch: In June 2025, LiquidStack introduced its modular CDU tailored for high-density, AI-powered data centers—supporting scalable liquid cooling at multi-MW levels.

Form Factor Outlook

Based on Form Factor, the LAMEA AI Server Market is segmented into Rack-mounted servers, Blade Servers, and Tower servers segment. The Rack mounted server segment garnered the highest revenue share among others in 2024 in LAMEA AI Server Market.

Rack-Mounted Servers

Trend:Rack-mounted servers are widely adopted in the LAMEA region due to their scalability and efficient space utilization, making them ideal for data centers and enterprise environments.

To illustrate:

• Equinix UAE Expansion: Equinix continues to expand its data center footprint in the United Arab Emirates, focusing on scalable rack-mounted configurations to support regional cloud and AI demand. The company’s ME1 facility in Dubai emphasizes high-density rack cooling and energy-efficient server architecture.

Blade Servers

Trend:Blade servers are gaining traction in the LAMEA region, particularly in environments requiring high-density computing and efficient resource utilization, such as virtualization and cloud computing.

To illustrate:

• Growth in Blade Server Adoption: Blade servers are becoming integral to the digital transformation of LAMEA’s BFSI sector, enabling AI-powered fraud detection and real-time analytics. Their modularity also supports AI application scalability in African telecom networks undergoing infrastructure modernization.

End Use Outlook

Trend:Based on the End Use, the LAMEA AI Server Market is segmented into IT & Telecommunication, BFSI, Retail & E-commerce, Healthcare & Pharmaceutical, Automotive and Other End Use. The IT & Telecommunication segment garnered the largest revenue share in LAMEA market followed by BFSI and Retail & E-commerce among all other end use verticals.

IT & Telecommunication

The IT & Telecommunication sector leads AI server adoption in the LAMEA region, driven by increased mobile and internet penetration, digital transformation efforts, and smart infrastructure expansion. Countries such as UAE, Nigeria, and Brazil are heavily investing in AI to enhance connectivity and operational efficiency.

Trend:Telecom operators are leveraging AI servers to optimize network traffic, predict service faults, and personalize customer interactions. AI is also aiding energy efficiency in data centers. The region’s AI in Telecom market is forecasted to grow at a CAGR of 43.8% through 2030, reflecting widespread digitization efforts and AI-driven network modernization.

To illustrate:

Major players like Etisalat (UAE), MTN (South Africa), and Oi (Brazil) are integrating AI through partnerships with global vendors such as Ericsson and Huawei. These providers deploy GPU-enabled AI servers to power intelligent call routing, network self-healing, and 5G expansion

BFSI (Banking, Financial Services, and Insurance)

In the BFSI segment, financial institutions in LAMEA are turning to AI servers to enhance fraud detection, risk analysis, and customer experience. Digital banking growth and regulatory tech reforms have spurred demand for robust AI compute infrastructure.

Trend:AI is being used to automate loan processing, detect fraudulent transactions in real-time, and deliver hyper-personalized financial products.

To illustrate:

Banks like Emirates NBD, Banco do Brasil, and First Bank of Nigeria deploy AI servers supported by IBM, Oracle, and local cloud vendors. AI workloads are also offloaded to regional data centers powered by Nvidia GPU clusters for secure, real-time analytics.

Based on Processor Type, the market is segmented into GPU-based Servers, FPGA-based Servers, and ASIC-based Servers. Based on Cooling Technology, the market is segmented into Air Cooling, Liquid Cooling, and Hybrid Cooling. Based on Form Factor, the market is segmented into Rack-mounted Servers, Blade Servers, and Tower Servers. Based on End Use, the market is segmented into IT & Telecommunication, BFSI, Retail & E-commerce, Healthcare & Pharmaceutical, Automotive, and Other End Use. Based on countries, the market is segmented into Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA.

LAMEA AI Server Market Report Segmentation

By Processor Type

• GPU-based Servers
• FPGA-based Servers
• ASIC-based Servers

By Cooling Technology

• Air Cooling
• Liquid Cooling
• Hybrid Cooling

By Form Factor

• Rack-mounted Servers
• Blade Servers
• Tower Servers

By End Use

• IT & Telecommunication
• BFSI
• Retail & E-commerce
• Healthcare & Pharmaceutical
• Automotive
• Other End Use

By Country

• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA