Data Center GPU Market Size to Surpass USD 155.2 Million by 2032, Owing to the Proliferation of AI, ML, and High-Performance Computing Workloads | SNS Insider

The Data Center GPU market is undergoing a paradigm shift, driven by a surge in artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) requirements across multiple industries.

Pune, May 30, 2025 (GLOBE NEWSWIRE) — Data Center GPU Market Size Analysis:

“The Data Center GPU Market size was USD 14.0 million in 2023 and is expected to reach USD 155.2 million by 2032 and grow at a CAGR of 30.57% over the forecast period of 2024–2032.”

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Major Players Analysis Listed in this Report are:

• NVIDIA Corporation
• Advanced Micro Devices, Inc. (AMD)
• Intel Corporation
• Qualcomm Technologies, Inc.
• Google LLC
• Amazon Web Services (AWS)
• Microsoft Azure
• IBM Corporation
• Alibaba Cloud
• Graphcore Ltd.
• ASUS
• Dell Technologies
• Gigabyte Technology
• Hewlett-Packard Enterprise (HPE)
• Super Micro Computer, Inc.

Data Center GPU Market Report Scope:

Report Attributes	Details
Market Size in 2023	USD 14.0 Billion
Market Size by 2032	USD 155.2 Billion
CAGR	CAGR of 30.57% From 2024 to 2032
Base Year	2023
Forecast Period	2024-2032
Historical Data	2020-2022
Key Segments	• By Deployment (On-premises, Cloud) • By Function (Training, Inference) • By End-Use (Cloud Service Providers, Enterprises, Government)
Key Growth Drivers	Rising demand for AI, ML, and HPC workloads is fueling the deployment of high-performance GPUs in data centers.

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GPU Acceleration Becomes Essential as AI and ML Dominate Enterprise Workloads

The Data Center GPU market as AI/ML workloads gain increasing importance in enterprise operations. With deep learning algorithms powering recommendation engines and generative AI creating near-human-like content, the demand for GPU acceleration in data centers is turning to be an ultimatum. From AI models growing ever larger to complex predictive analytics and real-time simulations, enterprises and hyperscale cloud service providers are implementing next-gen GPU systems.

The U.S. Data Center GPU Market was valued at USD 4.0 billion in 2023 and is projected to reach USD 43.8 billion by 2032, growing at a CAGR of 30.25% from 2024 to 2032. Growth is driven by surging AI, ML, and generative AI workloads across hyperscale and enterprise data centers. The future will see continued investments in HPC clusters, GPU cloud instances, and AI inference infrastructure for next-gen applications.

By Deployment:

The on-premise deployment segment dominated the market in 2023, and accounted for 53% of the total revenue. Especially when dealing with proprietary or classified data, defense, finance and healthcare industries prefer in-house data processing due to high security and regulatory requirements. The desire for tightly controlled, high-performing environments has led to the preference of on-premise GPU installations. But in the cloud segment is found to grow with highest CAGR during the forecast period.

By Function:

The inference segment dominated in 2023, accounting for 56% of the market share. With AI models being deployed in production environments for real-time decision-making, efficient inference engines have become critical. GPUs offer the necessary performance to run inference workloads quickly, especially in applications like chatbots, edge AI, and recommendation systems. The training segment, however, is expected to witness the fastest growth rate due to the increasing complexity of AI models and the need for high computational power to train them. GPUs are optimized for deep learning and complex neural networks, making them ideal for this segment.

By End Use:

Cloud service providers dominated the market in 2023, driven by the growing deployment of GPU-accelerated services for AI and ML workloads. Major cloud platforms offer GPU-backed virtual machines and infrastructure solutions for clients across diverse sectors, including finance, healthcare, and manufacturing. On the other hand, the government sector is projected to experience the fastest growth. This surge is attributed to public sector initiatives focusing on real-time analytics, cybersecurity, and national defense applications that require high-performance computing resources.

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North America Leads Data Center GPU Market While Asia-Pacific Emerges as Fastest-Growing Hub Driven by AI and 5G Expansion

In 2023, North America dominated the global data center GPU market, holding 37% of the total share. This supremacy stems from rapid AI and deep learning adoption in sectors like healthcare, finance, and autonomous systems. The region is also home to tech giants such as NVIDIA, Amazon, and Google, which are spearheading innovation in GPU-based computing and AI development. These companies are heavily investing in expanding their data center capabilities, introducing cutting-edge GPUs, and developing cloud-native AI solutions.

Asia-Pacific is anticipated to hold the fastest-growing regional market, growing with a CAGR of 31.93% from 2024 to 2032. This is aided by many factors such as 5G proliferation, smart city developments, as well as the digital transformation of retail and manufacturing, and public sector infrastructure. Nations such as China, Japan, and South Korea lead the charge in bringing AI into almost every aspect of life, a drive that puts an even higher demand on data centers powered by GPUs. Locally, cloud players are aggressively investing in more AI-ready infrastructure, which signals a commitment to tech advancement for the region.

Recent Developments

• October 2024: AMD unveiled its MI350 series, based on the CDNA 4 architecture, set to launch in the latter half of 2025. This series promises a significant leap in AI inference capabilities, offering up to a 35x performance increase compared to the previous generation.
• April 2025: Intel introduced significant enhancements to its Data Center GPU Max Series, emphasizing superior performance in AI and HPC workloads. These upgrades aim to bolster Intel’s competitive stance in the high-stakes data center GPU market.

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