Market research forecasts the datacenter chip market will reach $390.65 billion by 2030, driven by AI infrastructure buildout.
The global data center chip market is expected to grow from USD 206.96 billion in 2025 to USD 390.65 billion by 2030, growing at a CAGR of 13.5% from 2025 to 2030 according to MarketsandMarkets. Data center chips have emerged as the epitome of technological growth, driven by the growing emphasis on parallel computing in AI-based data centers. This innovation is bound to drive adoption across industries such as BFSI, Healthcare, Retail, and E-commerce. In the BFSI industry, data centers are used for real-time processing and compliance, while retail and e-commerce use them for handling large volumes of customer data and supply chain management. The growth in AI and general-purpose server shipment is likely to fuel continued demand for data center chips.
By application, the natural language processing segment is projected to grow at a significant CAGR during the forecast period. Applications such as chatbots, virtual assistants, language translation services, sentiment analysis, and text analytics require NLP to process and understand human languages. Since the application is very wide, huge demand has been created for powerful AI chips that could handle extensive computational requirements for NLP tasks. From the invention of large-scale language models like GPT-4 and BERT, the complexity and size of NLP models increased. In May 2024, OpenAI released GPT-40, capable of reasoning on text, video, and audio in real-time; deployment in applications from content generation to virtual assistants underlines the fast-rising demand for data center chips supporting NLP.
In the enterprise end-user segment, healthcare is projected to grow at a high CAGR during the forecast period. The adoption rate for data center chips in healthcare is currently on the rise, as medical institutions and technology companies have started spurring advanced AI capabilities for improved diagnostics, treatment planning, and personalized medicine. The adoption of AI-based data center chips in the development of large language models and other AI-driven medical applications has revolutionized the health sector in terms of enabling more accurate and timely medical interventions. In October 2022, Cerebras announced it was partnering with the Mayo Clinic to develop large language models for medical applications, creating the Rheumatoid Arthritis diagnostic model using the Cerebras CS-2 to integrate patient records, DNA data, and drug information to pair patients with the most effective therapeutics. Such AI-based data center chips are critical in furthering personalized medicine, in which treatment plans are tailored to each patient's unique genetic and medical profile.
Japan holds the second-largest market in Asia Pacific during the forecast period. The diversity of cloud providers in Japan entering the data center business has significantly increased over the last 3–5 years. Japan, being the leader in adopting advanced communications technology, was one of the first countries to witness a surge in data center interconnect (DCI) bandwidth requirements. Due to reliable DCI infrastructure in Japan, the adoption of 5G and edge computing is very high. In February 2022, GLP announced its 900 MW data center expansion plants in Japan. The market has evolved due to the emergence of international hyper-scale cloud providers. Cloud service providers like Amazon Web Services (AWS), Google, Microsoft Azure, SoftLayer, and IBM are expanding their presence in Tokyo and Osaka, driving the need for modular data centers to support IoT and edge computing applications.
The major players in the data center chip market are AMD (US), Intel Corporation (US), NVIDIA Corporation (US), AWS (US), Google (US), Samsung (South Korea), SK HYNIX Inc. (South Korea), Alibaba (China), Micron Technology (US), and Monolithic Power Systems, Inc. (US), among others.