Data Center GPU Market is Set to Surge $293.2 billion by 2034 – BIS Research

Market Overview 

Market Size and Growth 

The data center GPU market is set to grow from $36.0 billion in 2024 to $293.2 billion by 2034, at a CAGR of 23.33%. This surge is fueled by rising demand for AI, deep learning, and big data analytics, sectors that rely heavily on GPUs for ultra-fast, parallel computing power. Strategic partnerships and hyperscale data center expansions further reinforce this high-growth trajectory. 

Trends and Innovation 

Advancements in GPU architecture improved memory, energy efficiency, and processing speed are transforming data centers into high-performance, sustainable hubs. Collaborations with cloud providers and ongoing R&D are driving smart, scalable solutions, positioning GPUs at the core of next-gen digital infrastructure. 

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Key Highlights

Report USP 

• Detailed regional insights and competitive benchmarking. 
• Comprehensive analysis of demand drivers, challenges, and growth opportunities. 
• Extensive regional segmentation and profiles of leading players. 

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Demand Drivers, Challenges and Opportunities 

Driver  

The boom in cryptocurrency mining is accelerating demand for GPU-powered data centers. Mining-focused servers from firms like Primcast and Server Room leverage NVIDIA’s CMP HX and RTX 30 Series GPUs, optimized for high-throughput tasks like blockchain computation and 3D rendering. This surge is driving investments in data centers with enhanced cooling, power, and computer capabilities tailored for mining operations. 

Restraint  

The data center GPU market faces a major challenge from the high bargaining power of suppliers like NVIDIA, AMD, and Intel. Their vertically integrated ecosystems—especially NVIDIA’s full-stack GPU, CPU, and DPU offerings—create high switching costs for server manufacturers. Limited alternatives and software-hardware lock-in hinder flexibility, constraining innovation and supplier diversity. 

Opportunity  

Advancements in high-performance computing (HPC) and AI are opening vast opportunities for GPU server manufacturers. A case in point: OpenAI’s GPT-4 was trained using NVIDIA H100 GPUs, slashing training time with accelerated mixed-precision processing. As demand for AI workloads and cloud computing grows, GPU servers are becoming essential to powering next-gen applications in research, healthcare, and enterprise innovation. 

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Market Segmentation 

Segmentation 1: Application Based Segmentation 

•    Hyperscale  

•    Colocation 

•    Enterprise 

•    Others 

Segmentation 2:  Product Based Segmentation 

•    Conventional GPUs 

•    Accelerated GPUs 

Segmentation 3:  Region Based Segmentation 

•    North America 

•    Europe 

•    Asia-Pacific 

•    Rest-of-the-World 

Competitive Landscape 

Key Players 

•    NVIDIA Corporation 

•    Advanced Micro Devices, Inc. 

•    Intel 

•    Graphcore 

•    Tenstorrent 

•    Groq, Inc. 

•    Cerebras 

•    Amazon 

•    Meta 

•    Huawei Technologies Co., Ltd. 

•    Alibaba 

•    Baidu, Inc. 

•    Google 

Strategic Initiatives 

Nvidia is driving the data center GPU market forward through strategic initiatives like NVLink Fusion, which integrates third-party CPUs and AI chips with its GPUs, enhancing flexibility and ecosystem growth. A notable case study is Nvidia's collaboration with Foxconn to establish Taiwan's first AI supercomputing hub, leveraging the latest Blackwell GPUs to boost AI development across industries. 

Case Study or Success Studies 

Nvidia and Foxconn have partnered with Taiwan's government to build a cutting-edge AI supercomputing hub, powered by 10,000 Blackwell GPUs. This "AI Factory," operated by Foxconn's Big Innovation Company, will support Taiwan's AI ecosystem, including TSMC's R&D and national projects like TAIDE. The facility aims to accelerate advancements in smart cities, electric vehicles, and manufacturing, reinforcing Taiwan's position as a global AI innovation leader. 

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About BIS Research 

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