Data Center GPU Market

Data Center GPU Market Synopsis

The Global Data Center GPU Market was valued at USD 16.1 billion in 2024 and is expected to grow from USD 20.9 billion in 2025 to USD 179.6 billion by 2033, reflecting a CAGR of 30.6% over the forecast period.

The market of data center GPUs is really growing, and the most attributable factor is the increases in uses of artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) workloads. With the parallel processing features able to speed up complex processing programs, GPUs are quickly taking over old CPUs data centres to handle processing intensive applications. The market is being driven by the increasing needs in areas like cloud computing, autonomous systems and data analytics amongst selected areas, as well as generative AI.

Data Center GPU Market Driver Analysis

Rising Demand for AI & ML Workloads

GPUs are an essential part of deep learning (as well as natural language processing (NLP) and computer vision) training and inference pipelines since they can perform parallel computations very quickly. Deep learning models during training need to perform on large datasets and difficult mathematical functions, e.g., matrix multiplication and backpropagation, and these functions are computationally demanding. These operations are able to be performed on fast GPUs with thousands of cores which means that the training time is reducing drastically versus the regular CPUs.

Data Center GPU Market Restraint Analysis

Power Consumption and Heat Generation

GPUs consume a lot of energy, effectively using it only in the extreme scale of data center operations, where several powerful devices are employed in one environment. With such powerful processors, the chip produces a lot of heat under heavy operations, e.g. training of AI models or performance-intensive computing tasks. This requires very good cooling solutions to avoid overheating of the hardware and hardware failure such as cooling with advanced liquid cooling or high capacity air conditioning. Not only does this add to the cost of operations, but there is a question mark on the amount of environmental burden in the data center activity.

Data Center GPU Market Opportunity Analysis

Growing Demand for GPU-as-a-Service (GPUaaS)

Cloud service providers often provide pay-as-you-go models that enable enterprises to utilize GPU resources without having to make a huge initial investment on hardware as well as infrastructure. Businesses today can rent on-demand GPU power and pay only when they use by avoiding costly purchases and maintenance of GPU servers. Such a method is useful especially to startups, small and medium-sized companies (SMEs), and research institutions that cannot afford to roll out a data center in its full extent, yet they need high-performance computing.

Data Center GPU Market Trend Analysis

Development of Next-Gen GPU Architectures

The recent innovations like NVIDIA Blackwell architecture and AMD Instinct series are marking new levels of performance in the data center GPU market. NVIDIA Blackwell GPUs, which are specifically developed on AI and other high-performance computer applications, have massive solutions in terms of processing speed, memory bandwidths, and energy efficiency relative to past models. These GPUs have been designed to work with complex generative artificial intelligence jobs, big language model preparation and ongoing inference at scale. On the same note, the Instinct series by AMD having the MI300 and MI350 accelerators provide competitive performance controls with superior features such as high-bandwidth memory efficiency and optimization with the large-scale, parallel computation support.

Data Center GPU Market Segment Analysis

The Data Center GPU Market is segmented on the basis of Deployment Model, Function, and End-Use.

By Deployment Model

o   On-premises

o   Cloud

By Function

o   Training

o   Inference

By End-Use

o   Cloud Service Providers

o   Enterprises

o   Government

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Deployment Model, On-premises Segment is Expected to Dominate the Market During the Forecast Period

The deployment models discussed in this research study, the biofuel segment is expected to account for the largest market share of data center GPU market in the forecast period. This supremacy is supported by a growing demand by both large organizations and research agencies to achieve better control over data latency, security, and customization delegated infrastructure. Use of on-premises GPU enables organizations to handle sensitive workload at the local level which is especially significant in the financial, health, defense, and scientific research. Moreover, the organizations that have high costs of computing due to their intensive workloads and long-term needs may find it convenient to invest in the own high-performance GPU as opposed to cloud services.

By Function, the Inference Segment is Expected to Held the Largest Share

The inference segment is likely to dominate the market. Inference may be conceptualized as the attribute of trained AI models enabling real-time predictions or decisions, e.g. identifying objects in images, voice command processing, or language response generating. Since the advent of more consumer-facing services and enterprise processes, where that is enhanced with AI applications, the need to perform low-latency inference processing has increased extremely. Inference tasks also benefit well on GPUs because they can quickly run parallel computations which allows them to run in real-time at large scale.

By End-Use, the Cloud Service Providers Segment is Expected to Held the Largest Share

By end-use, the cloud service providers segment is expected to hold the largest share of the data center GPU market during the forecast period. This increase is driven by the growing demand of the GPU-accelerated services provided on the cloud-service like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Oracle cloud. High-performance GPU infrastructure is a big investment that these providers are pursuing to support a broad array of applications (such as AI model training, inference, data analytics, and simulation workloads). The pricing models offered by cloud environments are pay-as-you-go, and they are scalable and flexible, thus increasing the accessibility of GPU resources

Data Center GPU Market Regional Insights

North America is Expected to Dominate the Market Over the Forecast period

North America is expected to dominate the data center GPU market over the forecast period, driven by its strong technological infrastructure, high concentration of cloud service providers, and early adoption of advanced AI and high-performance computing applications. Large industry players are present in the region including NVIDIA, AMD and Google, Microsoft, and Amazon, who have taken up the expansion of a GPU data center immensely. On top of that, North American companies in various industries such as healthcare, finance, and auto are tapping BTB into GPU power to generate AI as well as data analysis and automation capabilities. The financing of the governments in digital innovation and huge investments in R&D also add to the leadership of the region in the market. The modern trend of improvement of AI, cloud computing, and large-data processing proves North America is the region to retain its leading position in the major market share of data center GPU of the global market in the current forecast period.

Recent Development

In May 2025, Intel Corporation launched a new lineup of GPUs and AI accelerators designed specifically for professionals and developers, emphasizing scalable AI performance across a wide range of workloads. A key highlight is the Intel Gaudi 3 PCIe card, which is built to support efficient AI inference within existing data center environments.

In March 2025, NVIDIA Corporation introduced its latest RTX PRO Blackwell series, a new generation of GPUs designed for professionals in AI, design, engineering, and the creative industries. This advanced lineup offers state-of-the-art capabilities in accelerated computing, AI inference, ray tracing, and neural rendering, setting a new benchmark for high-performance visual and AI-driven workloads.

Active Key Players in the Data Center GPU Market

o   Google Cloud

o   Advanced Micro Devices, Inc.

o   Huawei Cloud Computing Technologies Co., Ltd.

o   Imagination Technologies

o   IBMCorporation

o   Intel Corporation

o   Micron Technology, Inc.

o   Qualcomm Technologies, Inc.

o   NVIDIA Corporation

o   Samsung SDS

o   Other Key Players

Global Data Center GPU Market Scope