The Artificial Intelligence (AI) server market is entering a pivotal growth phase. ABI Research forecasts that the global market size will reach US$245 billion in 2025, up 25% from 2024. By 2030, AI server sales will grow even further, pushing the market to US$524 billion, representing an 18% Compound Annual Growth Rate (CAGR). Dell, Hewlett-Packard Enterprise (HPE), Inspur, and Lenovo are market leaders.
Key Takeaways:
- The AI server market size is US$245 billion in 2025. This number will increase to US$524 billion by 2030, equating to a CAGR of 18%.
- Gen AI and Agentic AI are market catalysts. As consumers and enterprises continue to increase usage of Gen AI and Agentic AI tools, data center operators must modernize their computing resources. AI servers/racks play an essential role to house GPUs, circuit clusters, and neocloud compute.
- The ChatGPT moment kickstarted significant market activity. Hyperscalers, Tier Two Cloud Service Providers (CSPs), neoclouds, frontier model developers, AI labs, and large enterprises have collectively poured hundreds of billions of dollars into cloud infrastructure to satisfy the demand for AI compute. Compute is used for both training large language models and monetizing these efforts in the form of inference.
- Texas server OEMs lead the way. Texas-based companies Dell and Hewlett-Packard Enterprise (HPE) hold the largest AI server market shares, followed by China-based Inspur and Hong Kong-based Lenovo.
- Legacy server solutions don't cut it. Market share leaders like Dell, Supermicro, HPE, and Lenovo build large, pre-validated AI clusters to meet modern computing demands. OEMs are also providing professional services, rapid deployment, and cost-savings for customers.
- Hyperscalers are a primary customer for AI servers. AWS, Google Cloud, Oracle, and other major hyperscalers are developing huge AI data centers. AI servers and cooling solutions are essential to this expansion.
- Supply chain issues loom. The global semiconductor supply chain is complex, with macroeconomic volatility and supply shortages influencing AI server pricing.
Driving Forces Behind AI Server Market Growth
The surge is powered by intense demand for AI server infrastructure from hyperscalers such as Amazon Web Services (AWS), Google, Meta, Microsoft, and model developers like xAI. These companies are investing heavily in Graphics Processing Unit (GPU) and Application-Specific Integrated Circuit (ASIC) clusters for large-scale AI model training and inferencing.
Private enterprises and emerging "neoclouds" like Lambda Labs and CoreWeave, as well as regional contenders such as Scaleway and Nscale, are also deploying AI-optimized systems at an unprecedented rate.
Enterprises increasingly rely on fine-tuned and Agentic AI models, which tailor capabilities to specific tasks and user environments. These models enhance decision-making, automation, and operational efficiency—key competitive differentiators across industries.
While classical Machine Learning (ML) training is the top use case driving the market today, fine-tuned/Agentic AI will take over by 2028. This segment will grow at an explosive 68% CAGR over the forecast period, outpacing every other use case by a long shot.
Related Research: Top Five AI Server Companies for Data Centers and Enterprises
Who Leads the AI Server Market by Vendor?
When analyzing the AI server market share, Dell leads with 20% in 2024, followed by HPE (15%), Inspur (12%), Lenovo (11%), and Supermicro (9%). These Original Equipment Manufacturers (OEMs) are racing to meet growing demand while navigating geopolitical tensions and component shortages.
2024 AI Server OEM Market Shares:
- Dell: 20%
- HPE: 15%
- Inspur: 12%
- Lenovo: 11%
- Supermicro: 9%
- Others: 33%
Hyperscaler Dominance and U.S.-China Showdown
Hyperscalers are the backbone of market demand, as they increasingly construct AI data centers requiring state-of-the-art server hardware. ABI Research expects hyperscalers to procure 1.7 million AI servers in 2025, representing US$123 billion in spending.
By 2030, hyperscalers' outlay will double to US$274 billion, capturing 52% of the server market. This is a trend that is set to continue throughout the decade as AI inference workloads scale to cater to reasoning models and Agentic AI.
Regionally, North America dominates, holding 52% of the market in 2025. By 2030, this is figure projected to climb to 57%. China follows at 15%, reflecting U.S. hegemony and the effect of U.S. trade restrictions in the global race for AI supremacy.
Market Risks and Supply Chain Uncertainties
Despite this growth, the path ahead isn't without challenges. Tariff policies and trade restrictions imposed by the United States could disrupt the supply chain of semiconductors, impacting AI server OEMs' ability to meet global customer demand.
While exemptions may temporarily alleviate pressure, the medium- to long-term impact remains uncertain (learn more about the potential tariff impact on the server market in my recent ABI Insight).
Supply chain uncertainties create strategic crossroads for server vendors. They may either pass costs on to customers, risking demand erosion, or absorb the tariffs and jeopardize margins. Some might pivot toward “Made in USA” configurations to circumvent restrictions altogether.
Looking Ahead
The AI server market has gained significant traction since ChatGPT’s release in late 2022. As enterprise adoption scales and AI workloads diversify, server infrastructure will remain the bedrock of this transformation.
Whether through standardized solutions from U.S. giants like Dell and HPE or hyper-focused AI and High-Performance Computing (HPC) systems from Penguin Solutions and AMAX, the industry is preparing for a decade of massive growth and technological milestones.
Methodology
This section explains the methodology behind ABI Research's forecast report.
Market Data Output and Segmentation
This market data (MD) provides forecasts for the following key components of the AI server market:
- Artificial Intelligence (AI) server shipments and revenue
- Major inferencing and training workloads
Breakdowns by:
- Form factor
- Region
- End customer
- Central Processing Unit (CPU) host processor
Data Inputs & Integration
Proprietary Chipset Forecasts: Leverage existing chip-level forecasts contained in ABI Research’s Artificial Intelligence and Machine Learning market data (MD-AIML-112, https://my.abiresearch.com/research/9764/) for unit volumes, pricing, and regional demand.
Form Factor Mapping:
Accelerators are assigned to server configurations based on:
- Graphics Processing Units (GPUs) per Server: Predefined ratios (e.g., NVL72 = 36 GPUs/rack, 2-GPU Tray = 18 trays)
- Workload Segmentation: Training versus inference, model type (e.g., foundational versus fine-tuning),
- Vendor Design Trends: Hyperscaler versus Original Equipment Manufacturer (OEM) preferences (e.g., NVL72 for cloud Large Language Model (LLM) training)
Workload Mapping:
Server form factors are assigned to server workloads (such as Agentic AI/Finetuning) based on hardware and data center infrastructure constraints.
Frequently Asked Questions
How big is the AI server market?
According to ABI Research’s latest forecasts, the AI server market size is US$245 billion in 2025. Key market drivers include the advent of ChatGPT, the scaling of enterprise Gen AI across industry verticals, and increased reliance on data centers for cloud computing/storage.
What is the outlook for the AI server market?
ABI Research forecasts the AI server market to grow at a Compound Annual Growth Rate (CAGR) of 18% through 2030, reaching a US$524 billion size. Revenue generation comes from Natural Language Processing (NLP), machine learning, deep learning inferencing, and model training.
Who sells AI servers?
AI servers are sold by Original Equipment Manufacturers (OEMs)/Original Device Manufacturers (ODMs) such as Dell, HPE, Supermicro, Lenovo, and Cisco. Smaller, more niche vendors like Penguin Solutions also sell AI servers, with a greater emphasis on special focus areas.
What is the global AI server market share by vendor?
Dell has the largest market share for AI servers, accounting for 20% of total sales in 2024. Hewlett-Packard Enterprise (HPE) ranks second with a 15% share. Chinese conglomerate Inspur and Lenovo round out the top four AI server vendors, with 12% and 11% market shares, respectively.
Further Reading
- AI Server Shipments and Revenue Market Data Overview: 2Q 2025
- AI Server OEM Tariff Strategies in Turbulent Times: How Will (or Should) Vendors React?
- State of the Art AI Data Centers: How Can AI Server OEMs Differentiate Today?
- AI Server OEMs Competitive Assessment