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According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, the server market reached a record $95.2 billion dollars in market value during the first quarter of the year, showing the highest quarterly growth rate ever with 134.1% increase compared to Q1 2024. This outstanding performance pushed the market projection up for the year to a record $366.0 billion dollars for 2025 which represents a 44.6% growth compared to 2024.
The x86 server market value is projected to increase 39.9% in 2025 to $283.9 billion while Non-x86 servers will increase 63.7% year over year to $82.0 billion. Servers with an embedded GPU are projected to grow 46.7% year-over-year representing almost 50% of the total market value in the year. The fast pace at which hyperscalers and cloud service providers continue adopting servers with embedded GPUs has fueled the server market growth which will be tripling in size in only three years. Thanks mainly to the launch of large rackscale configurations ARM based servers are rapidly gaining traction in the market by growing at 70.0% and representing 21.1% of the total shipments of the year.
“The Stargate project re-announcement promised to invest up to $500 billion in AI infrastructure to help create artificial general intelligence (AGI). Shortly thereafter, the release of DeepSeek’s R1 reasoning model caused concerns about the necessity of investing in so much infrastructure,” said Kuba Stolarsk i , research vice president, Worldwide Infrastructure Research. “R1 needed more infrastructure than was reported, and the evolution from simple chatbots to reasoning models to agentic AI will require several orders of magnitude more processing capacity, especially for inferencing. Improvements in the efficiency of model creation were expected and in fact a goal in the industry. Efficient models will use fewer resources, and therefore may scale better in multi-user environments, enabling high level reasoning and possibly eventually leading to AGI.”
Server Regional Market Projections
The United States is the fastest growing region in the server market with an increase of 59.7% compared to 2024, representing almost 62% of the total revenue in 2025. China is also growing at a faster rate than other regions with 39.5% year-over-year growth in 2025 and accounting for more than 21% of the quarterly revenue worldwide. Japan, and APeJC had double-digit growth projected this year with 33.9% and 10.8% respectively. EMEA and Latin America showed single digit growth at 7.0% and 0.7%, while Canada is showing negative -9.6% growth due to an unusual very large deal in 2024.
IDC's Worldwide Quarterly Server Tracker greatly enhances clients' ability to respond quickly and effectively to today's dynamic server market. This product provides insight into customer trends by delivering geography-specific market size, market share, and market forecast details across all server segments. This IDC tracker product delivers a quarterly web database that details the performance of the market's individual players, and it answers important product-planning and product-positioning questions. This Tracker is part of the Worldwide Quarterly Enterprise Infrastructure Tracker, which provides a holistic total addressable market view of the four key enabling infrastructure technologies for the datacenter (servers, external enterprise storage systems, and purpose-built appliances: HCI and PBBA).
