Global data center chip market value 2017 and 2025

The global data center chip market is forecast to reach around 15.64 billion U.S. dollars in size by 2025, more than double the size recorded in 2017. The market growth is enabled by cloud computing and the developments in chip technology.

The cloud

Advancements to the cloud has seen IT departments turning to datacenter automation to support large-scale environments and infrastructure, while simultaneously improving operational efficiency and productivity. In 2020, cloud IT infrastructure spending is expected to reach 69.2 billion U.S. dollars.

AI chips

In order to provide greater security and efficiency, many data centers are overseeing the widespread implementation of artificial intelligence (AI) in their processes and systems. AI technologies and tasks require specialized AI chips that are more powerful and optimized for advanced machine learning (ML) algorithms, owning to an overall growth in data center chip revenues.