The Data Center Server Market Will Grow by $169.3 Billion by 2028 Driven by AI and Cloud Computing

Here’s the translation into American English:

The sector is expected to experience an annual expansion of 18.52%, driven by strong impacts from trends in server disaggregation, energy efficiency, and multicloud architecture.

The global data center server market is projected to grow by an estimated $169.3 billion between 2024 and 2028, according to the latest report from Technavio. The sector is anticipated to register a compound annual growth rate (CAGR) of 18.52%, fueled by increasing investment in the expansion of in-house data centers, the adoption of cloud solutions, and the rise of artificial intelligence (AI) and machine learning (ML).

data center server market
Technavio has announced its latest market research report titled Global data center server market 2024-2028

Key Market Growth Factors

The study identifies several trends that are transforming the data center server market:

  • Server disaggregation: companies are opting to separate the components of their servers to optimize resource utilization, improve scalability, and reduce operational costs.
  • Sustainability and energy efficiency: the demand for green data centers is driving the use of renewable energy sources such as solar, wind, and hydropower.
  • Adoption of 5G and edge computing: the development of high-speed networks is favoring the proliferation of micro data centers and portable solutions for decentralized processing.
  • Growth of multicloud and hybrid infrastructures: organizations are combining public and private cloud environments to enhance the flexibility and security of their data.

In terms of geographic distribution, the Asia-Pacific region (APAC) will lead growth with a 37% market share, highlighting countries such as China, Japan, and Australia.

Challenges and Hurdles in the Sector

Despite rapid growth, the sector faces challenges such as:

  • Workload optimization: the need to constantly upgrade hardware, from processors (CPU, GPU) to storage units, generates additional costs.
  • Energy efficiency: energy consumption in data centers continues to rise, forcing the industry to develop more sustainable strategies.
  • Cybersecurity risks: the expansion of cloud storage and the use of AI to process large volumes of data present new challenges in digital security.

Market Segmentation and Key Players

Technavio’s report classifies the market by application, server type, and geographic location.

  • Application: commercial and industrial servers.
  • Server type: rack, blade, tower, microservers, and Open Compute Project (OCP) servers.
  • Regions: North America, APAC, Europe, South America, and Middle East and Africa.

Key market players include Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei, Lenovo, IBM, Oracle, Fujitsu, NEC, and Schneider Electric, among others.

Outlook for Coming Years

The data center server sector will continue to evolve with the integration of advanced technologies such as AI, big data, quantum computing, and IoT. The demand for greater storage and processing capacity will continue to grow, driven by the expansion of e-commerce, streaming, and digital financial services.

The development of hyperscale data centers and the shift towards greener solutions are expected to be determining factors in the future of the market.

via: Technavio

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