Data Center AI Chips Market Revenue and Forecast by 2035
Published: 18 Dec 2025
Author: Precedence Research
Data Center AI Chips Market Revenue and Trends 2026 to 2035
The global data center AI chips market power advanced computing systems with specialized architectures designed for AI workloads in enterprise and cloud infrastructures. This market is experiencing unprecedented growth, driven by the increasing adoption of AI models in the data centre industry and increasing investment in digital infrastructure.
What are the Factors That Have a Significant Contribution to the Growth of the Data center AI chips market?
The increasing use of specialized AI chips for workloads such as generative AI (GenAI), large language models (LLMs), inference, and recommendation processing is the major driver of market growth during the forecast period. The continuous advancement in chip technology, such as advanced semiconductor packaging and liquid cooling integration, enables more energy-efficient processing and helps manage the heat and power demands of AI hardware. The market’s growth is primarily supported by the widespread adoption of cloud-based services and the surging demand for High Performance Computing (HPC).
Segment Insights
- By chip/product type, the CPU segment held the dominant market share in the data center AI chip market in 2025, owing to increasing investment in existing data center architectures. CPUs can run a wide range of workloads and are indispensable to various enterprises.
- By data center type/size, the hyperscale data centers segment held a dominant market share in 2025 and is expected to expand at the fastest CAGR over the projected period, owing to massive capital investments by major hyperscalers such as Amazon, Google, Meta, and Microsoft in AI-powered data centers. Several organizations are increasingly shifting to cloud-based and hybrid models, propelling the segment’s expansion in the coming years.
- By end-user/industry vertical, the IT and telecom segment held the largest share of the data center AI chips market in 2025, owing to rapid digital transformation & cloud adoption. Telecom operators are increasingly using AI chips to power solutions for network planning, optimization, and predictive maintenance, with the aim of improving network efficiency, reducing latency, and lowering operational costs.
Regional Insights
The region's dominance is primarily driven by its well-established AI computing ecosystem, rising demand for AI models in the data centre industry, growing adoption of High-Performance Computing (HPC), a supportive government framework, and technological advancements in chip design. The North America region dominates the global Data center AI chips market. The large-scale adoption across major data centres supports the rising innovation in AI accelerator technology. The region is home to the world's leading cloud service providers and technology giants, including Google, NVIDIA, Amazon, Apple, Intel Corporation, and Microsoft. These companies are increasingly investing in building massive hyperscale data centers, which boosts innovation and market expansion in the region.
On the other hand, the Asia Pacific region is a rapidly growing market for Data center AI chips. China leads the data center AI chips market, owing to massive hyperscale investments and strong policy support, which create a favorable environment for AI adoption. The region's expanding digital infrastructure, surging data consumption, the emergence of edge computing, and increasing use of high-performance computing (HPC) workloads, particularly in countries like China, Japan, and India, are anticipated to boost the growth of the Data center AI chips market in the Asia Pacific region. Several industries in the region, such as healthcare, finance, and manufacturing, are increasingly relying on real-time data analytics and automation, which significantly increases demand for low-latency, high-throughput data center AI chips, driving their growth.
Data Center AI Chips Market Coverage
| Report Attribute | Key Statistics |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | North America |
| Base Year | 2025 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa |
Recent Developments
- In October 2025, Qualcomm Technologies, Inc. announced the launch of its next-generation AI inference-optimized solutions for data centers, the Qualcomm AI200 and AI250 chip-based accelerator cards, and racks. Building on the Company’s NPU technology leadership, these solutions deliver rack-scale performance and superior memory capacity for fast AI inference, achieving high performance per dollar per watt and marking a major leap in enabling scalable, efficient, and flexible generative AI across industries.(Source: https://www.qualcomm.com)
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