The server GPU market is undergoing a transformative evolution, driven by the surging demand for artificial intelligence (AI) applications and the increasing need for high-density computing. This shift is not only redefining data center architectures but also creating significant ripple effects throughout the global semiconductor industry. In 2023, the global server GPU market was valued at approximately $15.4 billion, propelled by escalating demand for AI, machine learning (ML), and high-performance computing (HPC). According to industry forecasts, the market is expected to grow at a strong compound annual growth rate (CAGR) of 31.99%, reaching a projected value of $61.7 billion by 2028.
Much of this momentum stems from the rapid advancements in AI and ML technologies, which require substantial computational power for training deep neural networks and running inference models at scale. Server GPUs, with their parallel processing capabilities, are increasingly indispensable in meeting these requirements. Additionally, the rise of edge computing—where data is processed closer to its source—is gaining traction across industries, reducing latency and bandwidth needs. As enterprises adopt more virtualized infrastructure, GPU-equipped servers are becoming essential tools to handle complex, real-time data processing efficiently.
Cloud computing is also playing a central role in this expansion. Major cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are aggressively investing in GPU infrastructure to deliver scalable, high-performance AI capabilities to clients. These investments are fueling a broader adoption of server GPUs as the backbone of modern cloud-based AI and ML services.
Regionally, the Asia-Pacific (APAC) market stands out for its exceptional growth trajectory. With a forecasted CAGR of 33.97%—the highest globally—countries like China, Japan, and South Korea are spearheading server GPU adoption. Their rapid industrialization of AI, expansion of edge computing frameworks, and the construction of hyperscale data centers are transforming the APAC semiconductor landscape and positioning the region as a critical hub for AI infrastructure.
Industry leaders are also adapting to meet evolving demands. Nvidia, long known for its end-to-end AI solutions, is now opening its AI server platform to integrate third-party CPUs and AI chips. This strategic shift reflects a move toward more modular, hybrid AI infrastructures, allowing customers greater flexibility while broadening Nvidia’s ecosystem. Meanwhile, Dell Technologies has launched a new line of AI servers powered by Nvidia’s cutting-edge Blackwell Ultra chips. These servers are designed to meet enterprise needs for faster AI model training and to support Nvidia’s future generation of CPUs, further reinforcing the infrastructure backbone of corporate AI initiatives.
Looking ahead, the server GPU market is set to maintain its upward trajectory as AI technology becomes deeply embedded across industries. From autonomous systems to predictive analytics and generative AI, the need for robust, efficient, and scalable GPU-powered servers will remain central to the next wave of digital transformation. As innovation accelerates, the organizations that strategically invest in high-performance GPU infrastructure will be best positioned to capitalize on the AI-driven future.