Global Server Market Hits All-Time High as AI Demand Fuels Explosive Growth

The global server market surged to an unprecedented $112.4 billion in revenue in the third quarter of 2025, marking a new record, according to figures from the International Data Corporation’s (IDC) Worldwide Quarterly Server Tracker.

The quarter delivered another period of robust expansion, with total vendor revenue climbing 61 per cent year-on-year compared with the same quarter in 2024. Growth was driven by strong demand across both traditional and accelerated server segments, reflecting the rapid scaling of artificial intelligence infrastructure worldwide.

Revenue from x86-based servers increased by 32.8 per cent during the third quarter of 2025, reaching $76.3 billion. Meanwhile, non-x86 servers recorded an exceptional rise, with revenue jumping 192.7 per cent year-on-year to $36.2 billion. Servers equipped with embedded GPUs were a key growth engine, as revenue from this category expanded by 49.4 per cent compared to the previous year and accounted for more than half of the overall server market revenue.

IDC attributed much of this momentum to the accelerated adoption of GPU-enabled servers by hyperscale operators and cloud service providers. As a result, the server market has nearly doubled in size compared with 2024, with cumulative revenue for the first three quarters of 2025 reaching $314.2 billion.

“IDC expects AI adoption keep growing at an outstanding pace as major vendors continue reporting record orders and showing strong backlogs,” said Juan Seminara, research director, Worldwide Enterprise Infrastructure Trackers. “Hyperscalers and cloud providers are still ahead with new, large deployments that require much higher compute density.”

“Additionally, we started to see major AI based Research and Education projects that will help fuel further growth path in the market,” Seminara added.

From a regional perspective, the United States dominated the global server market, posting a 79.1 per cent increase compared to the third quarter of 2024. This performance was largely driven by a 105.5 per cent surge in the accelerated server segment. Canada followed closely with year-on-year growth of 69.8 per cent, also supported by strong demand for accelerated infrastructure.

The People’s Republic of China (PRC) recorded a 37.6 per cent increase in server revenue during the quarter and accounted for nearly 20 per cent of global quarterly revenue. Other regions also delivered solid double-digit growth, with Asia-Pacific excluding Japan and China (APeJC) rising by 37.4 per cent, Europe, the Middle East and Africa (EMEA) by 31.0 per cent, and Japan by 28.1 per cent. Latin America was the weakest-performing region, though it still posted a modest 4.1 per cent year-on-year increase.

In terms of vendor rankings, Dell Technologies led the OEM market in the third quarter, securing an 8.3 per cent revenue share, supported by exceptional growth in accelerated servers. Supermicro ranked second with a 4.0 per cent share, despite experiencing a 13.2 per cent decline compared with the same quarter in 2024. IEIT Systems and Lenovo were statistically tied for third place, holding 3.7 per cent and 3.6 per cent of the market respectively, while Hewlett Packard Enterprise rounded out the top five with a 3.0 per cent share.

By fLEXI tEAM