Data Center GPU Market Size, Share & Industry Analysis, By Function (AI Training, AI Inference, High-Performance Computing (HPC), Graphics/Visualization, and Media/Video Processing), By Deployment (Cloud and On-premise), By End-user Vertical (IT & Telecom, Finance, Healthcare, Automotive, Media & Entertainment, Government, and Others), and Regional Forecast, 2026 – 2034

The global data center GPU market size was valued at USD 125.02 billion in 2025. The market is projected to grow from USD 138.88 billion in 2026 to USD 624.17 billion by 2034, exhibiting a CAGR of 20.7% during the forecast period.

Data center GPUs are high-performance computing (HPC) accelerators designed to handle parallel processing units at scale, making them a core enabler for modern AI workloads. They are widely used for AI training and inference, high-performance computing, and data-intensive analytics, where fast matrix and vector computations are critical. As organizations deploy more generative AI applications and expand model complexity, demand for GPU-accelerated infrastructure continues to rise as it delivers the throughput needed to process large datasets and support real-time AI services.

A major driver behind adoption is the ability to integrate GPUs into scalable cloud and enterprise platforms, allowing customers to provision compute quickly and expand capacity as workloads grow. Data center GPUs are increasingly deployed as part of optimized full-stack systems that combine accelerators with high-bandwidth memory, high-speed interconnects, and orchestration software.

Key companies, including NVIDIA, Intel, AMD, and IBM, are strengthening their positions through platform innovation, ecosystem partnerships, and strategic investments to enhance performance, efficiency, and enterprise readiness. These players are focusing on improving software compatibility, system-level integration, and infrastructure efficiency to support larger deployments and broaden adoption across hyperscalers, colocation providers, and enterprises.

Impact of Reciprocal Tariffs

Supply Chain Disruptions Due to Reciprocal Tariffs Delay Capacity Expansion

Reciprocal tariffs can increase the landed cost of data center GPUs and complete GPU server platforms by imposing duties on globally sourced components. This increases Capital expenditure (CapEx) for cloud providers, colocation operators, and enterprises, and can slow purchasing decisions, especially for smaller buyers with tighter budgets. Tariffs also create supply chain uncertainty, as vendors may shift sourcing or assembly to reduce exposure, which can lead to longer lead times and delayed capacity expansion in affected regions.

Data Center GPU Market Trends

Shift from GPU Chips to Full-Stack Platforms to be a Key Market Trend

GPU procurement is increasingly shifting from buying standalone accelerators to buying complete, validated platforms. Instead of optimizing only the GPU, buyers evaluate the full stack that determines real performance at scale, including high-speed networking and interconnects, memory and storage configuration, and the orchestration layer for scheduling and monitoring. For instance,

• In January 2026, at CES 2026, Nvidia launched the Vera Rubin NVL72 platform, a powerful AI data center system combining Vera CPUs, Rubin GPUs, and advanced networking processors. It delivers up to 3.6 exaflops of inference and 2.5 exaflops of training, with significant memory and bandwidth gains, liquid-cooled networking, and zero-downtime maintenance.

This platform approach shortens time-to-deployment, reduces integration and tuning effort, and lowers the risk of performance gaps caused by bottlenecks outside the GPU, especially when moving from pilot deployments to production clusters. It also supports more predictable lifecycle management, as upgrades, compatibility, and support are handled at the platform level rather than across multiple platforms.

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MARKET DYNAMICS

Market Drivers

Rapid Expansion of AI and GenAI Workloads Driving GPU Demand to Enhance Market Progress

A rapid increase in AI and GenAI workloads is boosting the data center GPU market growth as organizations scale their training, fine-tuning, and production deployment. Beyond initial model development, companies conduct continuous experimentation, implement frequent updates with new data, and perform domain-specific tuning, which results in recurring GPU consumption. For instance,

• According to Microsoft, global AI adoption climbed from 15.1% to 16.3% by the end of 2025.
• According to industry reports, 88% of companies now use AI in at least one business function, up from 78% the previous year.

At the same time, inference demand is rising as AI becomes embedded in everyday applications, such as copilots, search, and automation agents. GPUs remain the default choice as they deliver high parallel throughput and are supported by a mature software ecosystem, helping organizations move faster from pilots to stable production.

Market Restraints

Cooling and Power-Density Infrastructure Constraints Can Hamper Market Growth

Rising rack power densities for data center GPUs are pushing many facilities beyond the limits of standard air-cooling, creating a physical infrastructure restraint on deployments. Operators increasingly require liquid cooling or heat exchanger-based designs, along with upgrades to mechanical plant capacity and airflow management, which add engineering complexity and extend build timelines. For instance,

• According to the U.S. Department of Energy, the rapid growth of AI could lead to a threefold increase in data center energy consumption by 2028. Currently, up to 40% of that power is used to cool high-performance chips, underscoring the growing strain on energy resources.
• According to Goldman, Global power demand from data centers is expected to increase by 50% by 2027 and by as much as 165% by the end of the decade.

Retrofitting older sites is often expensive or impractical due to space, piping, and capacity constraints, and can disrupt ongoing operations. As a result, GPU deployments tend to concentrate in new builds or limited upgraded zones, slowing overall capacity additions and limiting near-term market scaling.

Market Opportunities

Improved Efficiency and New GPU Form Factors Unlock Significant Market Potential

Newer data center GPUs are delivering higher performance per watt and more compute power per server, thereby reducing the energy and operating costs required for a given level of AI output. In parallel, more integrated and modular system designs enable operators to deploy high-density GPU capacity faster and with less complexity at the node and rack levels. For instance,

• In November 2025, Nvidia launched its H100 data-center GPU into space aboard Starcloud-1 to test orbital AI computing, processing satellite data directly in orbit and drastically reducing the need to downlink massive datasets to Earth. This mission marks a shift in GPU form factors, demonstrating that full-scale, terrestrial data center GPUs can be adapted for compact, extreme environments.

As efficiency improves, GPU adoption becomes viable for a broader set of enterprises and colocation providers that face tighter power, cooling, and footprint limits. This also accelerates upgrade cycles, as customers refresh infrastructure to capture better economics and support more always-on, production inference workloads.

Segmentation Analysis

By End-user Vertical

Rising Adoption of Data Center GPUs by IT & Telecom Sector Boosted Segment Growth

Based on end-user vertical, the market is divided into IT & telecom, finance, healthcare, automotive, media & entertainment, government, and others.

The IT & telecom segment held the majority in the data center GPU market share in 2024, as it is the earliest and largest adopter of large-scale compute infrastructure. These companies operate cloud platforms, data networks, and digital services that rely heavily on AI for traffic management, customer engagement, analytics, and automation, driving continuous demand for high-performance GPUs. Their ability to invest at scale, combined with constant growth in data volumes and real-time processing needs, positions IT and telecom as the primary consumers of data center GPU capacity.

The healthcare segment is expected to witness the highest CAGR of 27.0% during the forecast period.

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By Function

Expansion of Large Language Models Strengthened AI Training Dominance

Based on function, the market is divided into AI training, AI inference, high-performance computing (HPC), graphics/visualization, and media/video processing.

AI training held the majority share in 2024. In 2025, the segment dominated with a 25.5% as training large and complex models requires extremely high compute intensity and long runtimes. Training involves processing massive datasets, running repeated iterations, and scaling across large GPU clusters, which drives substantial hardware consumption compared to inference. In addition, frequent model retraining, fine-tuning, and experimentation to improve accuracy and performance further increase GPU usage, making training the most resource-intensive and dominant function in the market.

The AI inference segment is expected to witness the highest CAGR of 28.5% during the forecast period.

By Deployment

Cloud Deployment Led Market as It Offers Immediate Access to Large-scale GPU

Based on deployment, the market is bifurcated into cloud and on-premise.

The cloud segment held the majority share by application in 2024. In 2025, the segment dominated with a 68.4% as it offers immediate access to large-scale GPU capacity without the need for upfront infrastructure investment. Hyperscalers and cloud providers aggregate demand across multiple customers, achieving higher utilization and faster scaling than on-prem deployments.

The cloud segment is expected to witness the highest CAGR of 22.6% during the forecast period as it offers immediate access to large-scale GPU capacity without the need for upfront infrastructure investment. Hyperscalers and cloud providers aggregate demand across multiple customers, achieving higher utilization and faster scaling than on-prem deployments.

DATA CENTER GPU MARKET REGIONAL OUTLOOK

By geography, the market is categorized into Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

North America

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North America holds the highest share of the market due to its concentration of the largest hyperscalers and cloud platforms, which are the biggest buyers of GPU infrastructure for AI training and large-scale inference. The region also has a strong ecosystem of AI-first software companies, research institutions, and enterprise adopters that accelerate demand for high-performance computing. The North American market was valued at USD 47.83 billion in 2025. In addition, North America benefits from mature data center capacity, deep capital availability for rapid expansion, and early adoption of new GPU platforms, which together drive faster deployments and a higher installed base compared to other regions.

U.S. Data Center GPU Market

Based on North America’s strong contribution and the U.S. dominance within the region, the U.S. market was valued at USD 38.1 billion in 2025, accounting for roughly 30.5% of Data Center GPU sales.

Europe

Europe is projected to record a growth rate of 30.9% in the coming years, and was valued at USD 20.92 billion in 2025. The expansion is driven more by steady capacity additions and upgrades than by rapid greenfield buildouts. The adoption of data center GPUs is increasing across enterprises and service providers; however, the deployment pace is moderated by factors such as power availability, longer permitting timelines, and a greater focus on energy efficiency and compliance. As a result, growth remains consistent and predictable, supported by gradual AI adoption, infrastructure modernization, and ongoing investments in efficient, high-density data centers.

U.K Data Center GPU Market

The U.K. market in 2025 was valued at USD 4.51 billion, accounting for approximately 3.6% of global data center GPU revenues.

Germany Data Center GPU Market

Germany’s market was valued at USD 3.96 billion in 2025, equivalent to around 3.2% of global data center GPU sales.

Asia Pacific

Asia Pacific is projected to record a growth rate of 22.2% in the coming years, and the second highest among all regions, and was valued at USD 41.46 billion in 2025. The region is rapidly expanding its data center footprint and scaling cloud capacity to meet the rising demand for digital and AI services. Enterprises across sectors are moving from experimentation to production AI use cases, which increases demand for GPU compute in both public cloud and private deployments.

In parallel, continued investment in hyperscale facilities, growing adoption of AI-driven services, and government-backed digital and AI infrastructure programs are accelerating new GPU installations, allowing the region to grow faster from a smaller installed base. For instance,

• In April 2025, the Philippines opened its first AI-first, GPU-powered hyperscale data center, VITRO Sta. Rosa, developed by PLDT’s data center arm VITRO. The 50-MW facility, powered by NVIDIA GPUs, introduces the country’s first GPU-as-a-Service (GPUaaS) offering, enabling businesses to access advanced AI computing without heavy upfront investment

Japan Data Center GPU Market

The Japanese market in 2025 was valued at USD 4.86 billion, accounting for roughly 3.8% of global Data Center GPU revenues.

China Data Center GPU Market

China’s market is projected to be one of the largest worldwide, with 2025 revenues valued at USD 14.19 billion, representing roughly 11.3% of global Data Center GPU sales.

India Data Center GPU Market

The Indian market in 2025 was valued at USD 5.25 billion, accounting for roughly 4.2% of the global market share.

South America and Middle East & Africa

The Middle East & Africa region was valued at USD 9.83 billion in 2025, making it the fourth-largest market and emerging as a significant player with the highest CAGR. The region is scaling up from a relatively smaller installed base while accelerating new investments in hyperscale and colocation data centers. Governments and large enterprises are driving digital transformation, cloud adoption, and AI-ready infrastructure, which in turn increases demand for GPU capacity for analytics, automation, and emerging GenAI use cases.

South America was valued at USD 4.98 billion in 2025 and is expected to grow at a significant CAGR due to the heavy expansion of data centers in Brazil, Mexico, and Chile, which are emerging as regional cloud hubs. The rapid growth of AI use in fintech, digital banking, and e-commerce, along with the increasing nearshoring of data workloads from North America, is accelerating GPU demand across the region.

GCC Data Center GPU Market

The GCC market was valued at approximately USD 5.66 billion in 2025, accounting for roughly 4.5% of global Data Center GPU revenues.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Players Implement Strategic Initiatives to Adapt to Tech Changes

Market players are enhancing their product portfolios in response to the growing demand for more precise health-tracking devices. They are implementing various business strategies, including partnerships, mergers, and acquisitions, to expand their global operations. NVIDIA Corporation, Intel Corporation, Advanced Micro Devices, IBM Corporation, and Microsoft, among others, are the most prominent players in the market.

LIST OF KEY DATA CENTER GPU COMPANIES PROFILED

• NVIDIA Corporation (U.S.)
• Intel Corporation (U.S.)
• Advanced Micro Devices, Inc. (U.S.)
• IBM Corporation (U.S.)
• Microsoft (U.S.)
• DigitalOcean (U.S.)
• Amazon Web Services, Inc. (U.S.)
• Alibaba Cloud (Singapore)
• Oracle (U.S.)
• Tencent Cloud (China)
• Coreweave (US)
• ai (U.S.)
• Lambda (U.S.)
• Google, LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS

• December 2025: Nvidia announced an investment of approximately USD 1.50 billion in building Israel’s largest-ever server farm in the Mevo Carmel industrial zone, which will host Blackwell-based GPUs and a next-generation supercomputer. The 64MW facility, dedicated to Nvidia’s internal R&D and chip testing, will use advanced liquid cooling and support massive AI training and inference workloads, making it one of the largest and most powerful data centers in the Middle East.
• December 2025: ai announced the deployment of Nvidia Blackwell Ultra (B300) GPU clusters at data centers across the U.K., utilizing HPE’s direct liquid-cooled servers. The rollout aims to deliver energy-efficient, sovereign AI infrastructure, cutting power use by up to 30% while supporting large-scale, low-carbon AI workloads in UK-based data centers.
• October 2025: Crusoe and Starcloud planned to launch Nvidia H100 GPUs into space to build solar-powered AI data center satellites, aiming to offer cloud computing from orbit. The project leverages abundant solar energy and space as a heat sink to cut energy costs, with the first H100 launch planned for late 2025 and limited space-based GPU cloud services expected by early 2027.
• September 2025: Intel and Nvidia partnered to build custom AI chips for data centers, combining Intel’s x86 CPUs with Nvidia’s GPUs connected via NVLink. The collaboration aims to deliver more efficient, tightly integrated CPU–GPU systems for large-scale AI workloads, improving performance, scalability, and energy efficiency in hyperscale and enterprise data centers.
• May 2025: DigitalOcean launched new GPU Droplets powered by NVIDIA RTX 4000 Ada, RTX 6000 Ada, and L40S GPUs. These GPUs support AI workloads, including generative AI, LLM inference, model training, 3D graphics, rendering, and video applications. The GPU Droplets are designed for easy setup, competitive pricing, and enterprise-grade reliability, currently available in DigitalOcean’s Toronto data centers.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, it encompasses several factors that contributed to the growth of the market in recent years.

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