(MENAFN- GlobeNewsWire - Nasdaq) Key market opportunities in the data center chip sector include increasing demand for energy-efficient processors, expansion in cloud services, advancements in AI-driven chip designs, and regional growth prospects in Asia-Pacific. Additionally, addressing trade impacts offers potential for innovation and strategic global repositioning.

Dublin, Oct. 27, 2025 (GLOBE NEWSWIRE) -- The "Data Center Chip Market Report 2025" has been added to ResearchAndMarkets's offering.
The data center chip market size has grown rapidly in recent years. It will grow from $17.23 billion in 2024 to $19.67 billion in 2025 at a compound annual growth rate (CAGR) of 14.1%. The growth in the historic period was driven by the increasing adoption of virtualization technologies, the rising demand for energy-efficient processing, the surge in data traffic and storage needs, the expansion of hyperscale data center deployments, and the growing reliance on high-performance computing.
The data center chip market size is expected to see rapid growth in the next few years. It will grow to $32.97 billion in 2029 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to the rising number of hyperscale data centers, the surge in data traffic driven by digital transformation, the growing demand for high-performance computing, the increasing emphasis on energy-efficient processors, and the expanding adoption of virtualization and software-defined networking.

Key trends anticipated during this period include advancements in heterogeneous chip architectures, progress in advanced packaging technologies to boost performance, innovations in chiplet-based designs, the integration of AI accelerators into processors, and developments in photonic interconnects to enable faster data transfer.

The increasing adoption of cloud services is expected to drive the growth of the data center chip market in the coming years. Cloud services refer to internet-based computing resources and applications that can be accessed on demand without the need for owning physical infrastructure. This adoption is fueled by scalability, which allows businesses to adjust resources as needed without major hardware investments. Data center chips play a key role in cloud services by delivering high-performance computing and efficient data processing, enabling servers to manage large workloads, store vast amounts of data, and support fast, reliable applications. For example, in June 2024, AAG IT Services, a UK-based non-government organization, reported that in 2023, about 63% of small and medium-sized business workloads and 62% of their data were expected to be hosted in public clouds, compared to 57% and 56% in 2022. This trend illustrates how the growth of cloud adoption is fueling demand for data center chips.
Companies in the data center chip market are focusing on developing advanced infrastructure chips designed to optimize computing performance and support AI-driven workloads. These custom-designed chips are specifically engineered for data center operations, addressing tasks such as high-performance computing, storage, networking, and AI processing, rather than relying on general-purpose processors. For instance, in November 2024, Microsoft Corporation, a US-based technology company, introduced Azure Integrated HSM (hardware security module) and Azure Boost DPU (data processing unit) to strengthen cloud security and accelerate performance in data-intensive workloads. The Azure Integrated HSM ensures encryption keys are secured in dedicated hardware for faster, more secure cryptographic operations, while the Azure Boost DPU offloads networking and storage functions from CPUs, improving efficiency and speed for demanding AI applications.
In June 2025, Qualcomm Inc., a US-based semiconductor and technology company, acquired Alphawave Semi for $2.4 billion. This acquisition is intended to enhance Qualcomm's presence in the data center chip market by combining its custom CPU and NPU capabilities with Alphawave Semi's advanced connectivity technologies. The integration will enable Qualcomm to offer more efficient, high-performance, and comprehensive computing platforms tailored for AI inferencing and the evolving demands of modern data centers. Alphawave Semi is a UK-based semiconductor company specializing in data center chips.
Major players in the data center chip market are Google LLC, Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Intel Corporation, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Qualcomm Technologies Inc., Sk Hynix Inc., Broadcom Inc., Hewlett Packard Enterprise, Fujitsu Limited, NVIDIA Corporation, Advanced Micro Devices Inc., Texas Instruments Incorporated, STMicroelectronics N.V., Marvell Technology Group Ltd., Arm Holdings Plc, Monolithic Power Systems Inc., Ampere Computing LLC.

Key Attributes:

Report Attribute	Details
No. of Pages	250
Forecast Period	2025 - 2029
Estimated Market Value (USD) in 2025	$19.67 Billion
Forecasted Market Value (USD) by 2029	$32.97 Billion
Compound Annual Growth Rate	13.8%
Regions Covered	Global

Key Topics Covered:

Markets Covered:

• By Chip Type: Central Processing Units (Cpus); Graphics Processing Units (Gpus); Application-Specific Integrated Circuits (Asics); Field-Programmable Gate Arrays (Fpgas); Neural Processing Units (Npus)
• By Technology: 25 Nanometer (NM) and Below; 26 Nanometer (NM) to 45 Nanometer (NM); 46 Nanometer (NM) to 65 Nanometer (NM); Above 65 Nanometer (NM)
• By Data Center Size: Small and Medium Size; Large Size
• By Application Area: Data Storage; Networking; High-Performance Computing (HPC); Artificial Intelligence (Ai) and Machine Learning (Ml); Cloud Computing
• By End-Use: Information Technology; Telecom; Healthcare; Banking, Financial Services, and Insurance (BFSI); Retail and E-Commerce; Entertainment and Media; Energy; Other End-Users

Subsegments:

• By Central Processing Units: Server Central Processing Units (CPUs); Desktop Central Processing Units (CPUs); Mobile Central Processing Units (CPUs); High-Performance Central Processing Units (CPUs); Low-Power Central Processing Units (CPUs)
• By Graphics Processing Units: Discrete Graphics Processing Units (Gpus); Integrated Graphics Processing Units (Gpus); Airtificial Intelligence or Machine Learning Accelerators; High-Performance Computing Graphics Processing Units
• By Application-Specific Integrated Circuits: Networking Application-Specific Integrated Circuits (ASICs); Storage Application-Specific Integrated Circuits (ASICs); Security; Application-Specific Integrated Circuits (ASICs); Artifical Intelligence or Machine Learning Application-Specific Integrated Circuits (ASICs); Custom Application-Specific Integrated Circuits (ASICs)
• By Field-Programmable Gate Arrays: High-End Field-Programmable Gate Arrays (Fpgas); Mid-Range Field-Programmable Gate Arrays (Fpgas); Low-End Field-Programmable Gate Arrays (Fpgas); Embedded Field-Programmable Gate Arrays (Fpgas)
• By Neural Processing Units: Edge Neural Processing Units (NPUs); Cloud Neural Processing Units (NPUs); Mobile Neural Processing Units (NPUs); Airtificial Intelligence Inference Neural Processing Units (NPUs); Airtificial Intelligence Training Neural Processing Units (NPUs)

Data Center Chip Market Regional and Country Analysis
Data Center Chip Market Competitive Landscape and Company Profiles

• Google LLC Overview, Products and Services, Strategy and Financial Analysis
• Samsung Electronics Co. Ltd. Overview, Products and Services, Strategy and Financial Analysis
• Huawei Technologies Co. Ltd. Overview, Products and Services, Strategy and Financial Analysis
• Intel Corporation Overview, Products and Services, Strategy and Financial Analysis
• IBM Corporation Overview, Products and Services, Strategy and Financial Analysis

Data Center Chip Market Other Major and Innovative Companies

• Cisco Systems Inc.
• Oracle Corporation
• Qualcomm Technologies Inc.
• Sk Hynix Inc.
• Broadcom Inc.
• Hewlett Packard Enterprise
• Fujitsu Limited
• NVIDIA Corporation
• Advanced Micro Devices Inc.
• Texas Instruments Incorporated
• STMicroelectronics N.V.
• Marvell Technology Group Ltd.
• Arm Holdings Plc
• Monolithic Power Systems Inc.
• Ampere Computing LLC

Global Data Center Chip Market Competitive Benchmarking and Dashboard
Key Mergers and Acquisitions in the Data Center Chip Market
Recent Developments in the Data Center Chip Market
Data Center Chip Market High Potential Countries, Segments and Strategies

• Countries Offering Most New Opportunities
• Offering Most New Opportunities
• Growth Strategies

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• Data Center Chip Market

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