The AI Server Market is Predict to reach USD 1.6 Trillion by 2032, at a CAGR of 37.5%

AI Server Market Growth, Trends and Report Highlights

According to a new report, published by KBV research, The Global AI Server Market size is expected to reach $1.6 Trillion by 2032, rising at a market growth of 37.5% CAGR during the forecast period.

The introduction of AI servers marked a pivotal shift in the industry. Companies like NVIDIA played a crucial role by providing GPUs that significantly enhanced the processing capabilities required for AI tasks. Simultaneously, cloud service providers (CSPs) such as Amazon Web Services, Microsoft Azure, and Google Cloud began offering AI-specific infrastructure, making AI more accessible to businesses of all sizes. The proliferation of AI applications across various sectors—including healthcare, finance, automotive, and manufacturing—further fueled the demand for AI servers.

The GPU-based Servers segment captured the maximum revenue in the Global AI Server Market by Processor Type in 2024, thereby, achieving a market value of $845.2 billion by 2032. GPUs remain the backbone of AI training and inference workloads due to their parallel processing capabilities, high throughput, and compatibility with popular machine learning frameworks. Market leaders like NVIDIA and AMD have maintained technological dominance in this space through successive chip innovations and developer ecosystems like CUDA.

The Air Cooling segment is experiencing a CAGR of 37 % during the forecast period. A growing trend in air cooling is the modernization of airflow management. Dell’s launch of the PowerCool Enclosed Rear Door Heat Exchanger (eRDHx) is a clear example. This design recaptures heat generated by IT hardware and directs it efficiently outside server racks, reducing cooling costs by up to 60% compared to traditional CRAC-based systems.

The Rack-mounted Servers segment led the maximum revenue in the Global AI Server Market by Form Factor in 2024, thereby, achieving a market value of $613.6 billion by 2032. Rack-mounted servers are the predominant form factor in the global AI server landscape, serving as the foundational infrastructure for hyperscale data centers and enterprise AI deployments. Their ability to support modular expansion, efficient airflow, and high-density GPU configurations makes them indispensable for large-scale AI workloads such as model training, inference, and deployment in both centralized and edge environments.

The IT & Telecommunication segment is growing at a CAGR of 36.2 % during the forecast period. AI servers form the computational core of network optimization, traffic management, predictive analytics, and customer personalization systems. As 5G, IoT, and edge computing evolve, telecom operators and IT firms are scaling AI capabilities through high-density GPU- and ASIC-powered servers. One of the primary trends is the rise of AI-driven telecom modernization.

Full Report: https://www.kbvresearch.com/ai-server-market/

The North America region dominated the Global AI Server Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $581.8 billion by 2032. The Europe region is anticipated to grow at a CAGR of 36.9% during (2025 - 2032). Additionally, The Asia Pacific region would witness a CAGR of 38.1% during (2025 - 2032).

List of Key Companies Profiled

• Dell Technologies, Inc.
• Cisco Systems, Inc.
• IBM Corporation
• HP Inc.
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• NVIDIA Corporation
• Fujitsu Limited
• Intel Corporation
• Microsoft Corporation
• Salesforce, Inc.

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 Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

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