North America AI Server Market Size, Share Analysis Report By Server Type (AI Data, AI Training, AI Inference, Others), By Hardware Type (GPU, ASIC, FPGA, Others), By Industry Vertical (IT & Telecom, BFSI, Retail, Healthcare, Manufacturing, Other Industry Verticals), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The North America AI Server Market size is expected to be worth around USD 161.17 Billion By 2034, from USD 13.78 billion in 2024, growing at a CAGR of 27.8% during the forecast period from 2025 to 2034. The US Market Size was exhibited at USD 12.88 Billion in 2024 with CAGR of 27.82%.

The North America AI Server market encompasses the sale and distribution of AI servers within this region. This market is characterized by a robust technological infrastructure and a high degree of digitalization, making it a leading player in the AI technology space. The presence of key technology giants and numerous startups drives innovation and adoption in this sector, positioning North America as a critical market for AI server developments.

The primary driving factors for the North America AI Server market include the increasing complexity of data, the growing need for data privacy, and the escalating demand for real-time processing capabilities. These drivers are crucial in sectors where large volumes of data are generated, such as in media, entertainment, and telecommunications, necessitating powerful processing solutions that AI servers provide.

Demand for AI servers in North America is significantly driven by the surge in machine learning applications, big data analytics, and the continuous need for more efficient data processing systems in cloud services. Industries are leveraging these servers to handle extensive computations and storage requirements, thereby ensuring smoother operations and better performance outcomes.

The major reason for the increased demand in the North America AI Server market is the exponential growth in data generation and consumption. Organizations are increasingly dependent on artificial intelligence to derive meaningful insights from vast amounts of data, pushing the demand for specialized AI servers that can manage such tasks efficiently.

According to TechInsights, the company shipped around 3.76 million data center GPUs, nearly 1 million more than the year before. This helped NVIDIA gain a massive 98% market share, leaving very little space for competitors. The company’s AI server revenue reached $36.2 billion, which is three times higher than in 2022.

A prominent trend in the North America AI Server market is the integration of AI with IoT and edge computing. This trend reflects the shift towards decentralized processing, where AI servers are being deployed closer to the source of data collection, thus enhancing the speed and efficiency of data processing.

Key Takeaways

• The North America AI server market is entering a period of significant expansion. As of 2024, the market stood at USD 13.78 billion. By 2034, it is projected to reach approximately USD 161.17 billion, expanding at a compound annual growth rate (CAGR) of 27.8% over the forecast period.
• In 2024, the United States accounted for a substantial share, with a market size of USD 12.88 billion. The growth trajectory of the U.S. market mirrors the regional trend, with a CAGR of 27.82%, suggesting strong local adoption of AI-driven computing infrastructure.
• Among server types, AI data servers accounted for the largest share, representing 39.63% of the total market in 2024.
• From a hardware perspective, GPUs (Graphics Processing Units) continue to dominate the market, contributing 58.55% of the overall share in 2024.
• The IT and Telecom sector emerged as the leading adopter of AI server infrastructure, holding a 27.71% market share in 2024.

Analysts’ Viewpoint

Technological adoption in the AI server market is rapidly increasing due to the critical need for advanced analytics in decision-making processes. AI servers facilitate complex calculations at high speeds, which is essential for real-time analytics and automated decision systems.

The key reasons for adopting AI server technologies include improved operational efficiency, enhanced data management capabilities, and the ability to gain competitive advantages through advanced analytics. These factors drive businesses to invest in AI servers as part of their digital transformation strategies.

According to the research conducted by Market.us, The AI Server Market is projected to experience significant growth over the next decade. The market size is forecasted to expand from USD 30,742.0 million in 2023 to approximately USD 343,260.5 million by 2033. This represents a robust CAGR of 27.6% from 2024 to 2033.

The North America AI Server market offers substantial investment opportunities, particularly in developing AI-driven applications for healthcare, autonomous vehicles, and financial services. Investors are particularly attracted to the high growth potential of AI technologies and the scalability offered by AI servers.

Technological Advancements Technological advancements in AI servers include the development of energy-efficient models, the incorporation of next-generation AI chips, and improvements in network connectivity. These advancements are pivotal in meeting the increasing demands for faster and more efficient data processing.

Regulatory Environment The regulatory environment in North America is evolving to address the ethical use of AI, data privacy, and security concerns associated with AI servers. Regulations are being formulated to ensure that the deployment of AI technologies adheres to ethical standards and protects consumer rights.

US AI Server Market

The US AI Server Market is valued at approximately USD 12.9 Billion in 2024 and is predicted to increase from USD 16.5 Billion in 2025 to approximately USD 149.9 Billion by 2034, projected at a CAGR of 27.82% from 2025 to 2034.

The U.S. is home to numerous technological innovators like Nvidia, AMD, and Google, which are pivotal in the development and manufacturing of advanced AI servers. These companies continuously push the boundaries of AI technology with significant investments in R&D, fostering advancements that enhance the capabilities of AI servers in terms of processing power, speed, and efficiency.

Market Share By Country from 2019 to 2024 (%)

Government initiatives also play a significant role in the U.S.’s dominance in the AI server market. Policies aimed at promoting AI infrastructure development, including the identification of federal sites for data center construction, have facilitated the expansion of AI capabilities.

Furthermore, collaborations between the public and private sectors have accelerated the integration of AI technologies into mainstream applications. These combined factors have positioned the United States at the forefront of the AI server market, enabling it to capitalize on the growing global demand for AI-driven solutions.​

Other key regions growth:

The recent data from StorageReview indicates a notable expansion in several key regions’ markets. The growth in Japan is particularly significant, with an increase of 66.9%. This is followed by the Asia/Pacific region, excluding Japan and China (APeJC), which saw a growth of 43.8%.

The Europe, Middle East, and Africa (EMEA) region experienced a growth of 28.2%, while Latin America showed a more modest increase of 7%. These statistics suggest a robust trend in market expansion across diverse geographical locations.

Server Type Analysis

In 2024, the AI Data server segment in the North American AI server market held a significant position, capturing more than a 39.63% share. This segment is instrumental due to its role in managing and storing the vast amounts of data generated by AI applications across various industries.

As businesses increasingly rely on artificial intelligence to drive insights and decision-making, the demand for robust data processing and storage solutions has surged. AI Data servers are designed to handle these complex data workflows, providing the necessary infrastructure to support the storage, retrieval, and analysis of large datasets essential for AI operations.

Market Share By Server Type Analysis from 2019 to 2024 (%)

The prominence of the AI Data segment can be attributed to several key factors. Firstly, the expansion of digital data creation across sectors such as healthcare, finance, and automotive necessitates powerful server solutions that can rapidly process and store data​. Moreover, the adoption of IoT and connected devices further drives the need for AI data servers, as these technologies generate continuous streams of data that require effective management to harness their full potential.

Additionally, advancements in server technologies have bolstered the capabilities of AI Data servers, enhancing their efficiency and scalability. Innovations in hardware, such as improved GPU and TPU integration, have enabled these servers to handle more demanding AI workloads, thereby supporting more complex AI and machine learning models.

Hardware Type Analysis

In 2024, the GPU segment of the North American AI server market secured a dominant position, capturing more than a 58.55% share. This leadership is largely attributed to the comprehensive capabilities of GPUs to handle extensive and complex AI computations efficiently.

The architecture of GPUs, designed to perform parallel operations, significantly accelerates tasks such as machine learning, deep learning, and other intensive data processing workloads. This makes GPUs indispensable for businesses requiring high-performance computing to derive actionable insights from large volumes of data rapidly​

Market Share By Hardware Type Analysis from 2019 to 2024 (%)

The preference for GPU-based servers continues to be reinforced by their adaptability to a wide range of AI applications, from advanced analytics to image and voice recognition tasks. The hardware’s ability to speed up the training and inference phases of AI model development contributes profoundly to its widespread adoption.

Moreover, ongoing advancements and the integration of new technologies into GPU servers enhance their capability to meet the increasing demands of modern AI applications​. Another pivotal factor driving the dominance of GPUs in the AI server market is their strong ecosystem support, spearheaded by major technology providers like NVIDIA, which holds a substantial market share.

NVIDIA and other companies continuously innovate their GPU offerings, ensuring they remain at the forefront of the AI hardware market. This not only helps in maintaining a competitive edge but also caters to the evolving needs of various industries employing AI technology​.

Industry Vertical Analysis

In 2024, the IT & Telecom segment held a dominant market position in the North American AI server market, capturing more than a 27.71% share. This leading position can be attributed to several key factors that underscore the critical role of AI servers in this sector.

Primarily, the IT & Telecom industry has been at the forefront of adopting advanced technologies due to its inherent need to manage vast amounts of data and its demand for high-speed processing and low-latency networking.

AI servers play a pivotal role in enabling efficient data management and real-time processing capabilities that are essential for cloud computing, data centers, and the expansive growth of 5G networks. These technologies are integral to supporting the complex workloads and the performance requirements of modern telecommunication services​.

Market Share By Industry Vertical Analysis from 2019 to 2024 (%)

Moreover, the surge in digital communication, driven by increased internet usage and mobile connectivity, necessitates robust backend support that AI servers provide. These servers enhance network reliability and optimize traffic management, which are crucial for maintaining system integrity and user satisfaction in a highly connected world.

The strategic deployment of AI servers enables telecom operators to offer enhanced services and improves their ability to manage network loads, thereby supporting the growing array of IoT devices and streaming services​. The segment’s growth is further fueled by continuous investments in AI and machine learning technologies aimed at enhancing service capabilities and network security.

Telecom companies are increasingly implementing AI to predict and prevent network outages, personalize customer experiences, and improve service offerings, which in turn drives the demand for powerful AI servers capable of performing these advanced computational tasks​.

Key Market Segments

By Server Type

• AI Data
• AI Training
• AI Interence
• Others

By Hardware Type

• GPU
• ASIC
• FPGA
• Others

By Industry Vertical

• IT & Telecom
• BFSI
• Retail
• Healthcare
• Manufacturing
• Other Industry Verticals

Driver

Advancements in AI Hardware Technologies

The North America AI Server market is driven primarily by significant advancements in AI hardware technologies, including GPUs, TPUs, and ASICs. These technologies are crucial for enhancing the performance and efficiency of AI servers, making them capable of handling complex and resource-intensive AI tasks.

The specialized architecture of these processors accelerates AI workloads, such as machine learning model training and real-time data processing, which are essential for applications across various sectors including healthcare, automotive, and finance. This technological evolution enables AI servers to manage large datasets and complex computations more efficiently, meeting the growing demand for AI capabilities across industries​.

Restraint

High Initial Investment Costs

Despite the promising growth in the AI server market, a major restraint is the high initial costs associated with deploying and maintaining AI server infrastructure. The expense of advanced AI hardware, such as high-performance GPUs and customized ASICs, can be prohibitively high, particularly for startups and small to medium enterprises.

These costs are compounded by the need for continual upgrades and maintenance to keep up with rapid technological advancements, posing a significant barrier to entry for smaller players and limiting the broader adoption of AI technologies​.

Opportunity

Expanding AI Applications Across Multiple Sectors

There is a substantial opportunity for growth in the AI server market in North America due to the expanding application of AI across various sectors. Industries such as healthcare, automotive, and retail are increasingly adopting AI to enhance operational efficiency, improve customer experiences, and develop innovative products and services.

AI servers play a pivotal role in supporting these applications by providing the necessary computational power to process and analyze large volumes of data. As more sectors recognize the benefits of AI, the demand for robust and efficient AI servers is expected to surge, offering significant opportunities for market expansion​.

Challenge

Keeping Pace with Rapid Technological Advancements

A critical challenge facing the North America AI server market is the rapid pace of technological advancements. AI server technologies are continually evolving, requiring constant updates and adaptations. This fast-paced innovation cycle can strain resources as companies must invest heavily in research and development to stay competitive.

Additionally, there is a growing need for skilled professionals who can manage and operate advanced AI server systems, and the current talent pool may not be sufficient to meet these demands. The shortage of skilled labor could hinder the effective deployment and optimization of AI server technologies, impacting the growth of the market.

Growth Factors

The North America AI server market is experiencing robust growth, driven by several key factors. Firstly, there is a significant demand for high-speed data processing capabilities that AI servers provide, which is essential for handling real-time applications and analytics across various industries.

The ability of these servers to manage large volumes of data quickly and efficiently makes them indispensable in today’s data-driven business environment. Additionally, advancements in hardware technologies, particularly in GPUs and TPUs, are crucial growth drivers.

These specialized processors enhance the performance of AI servers, making them capable of executing complex AI tasks more effectively. This has led to their increased adoption in sectors that rely heavily on AI, such as healthcare, automotive, and finance​.

Emerging Trends

Emerging trends in the AI server market include the integration of AI with cloud computing, which offers enhanced flexibility and scalability for businesses implementing AI. The shift towards cloud-based AI servers allows organizations to scale their AI capabilities without significant upfront investments in physical infrastructure.

This trend is supported by major cloud service providers like AWS and Microsoft Azure, which offer specialized AI tools and optimized instances for machine learning and other AI applications​. Another notable trend is the growing focus on energy-efficient AI server solutions.

As the demand for AI servers increases, so does the need for sustainable practices. Companies are now prioritizing the development of AI servers that consume less energy and reduce overall environmental impact, aligning with broader industry goals for sustainability​.

Business Benefits

AI servers bring several business benefits, starting with enhanced operational efficiency. They enable faster processing and analysis of data, leading to quicker decision-making and improved responsiveness to market changes. For industries like retail and healthcare, this can translate into better customer service and more personalized experiences​.

Moreover, AI servers support the development and deployment of advanced AI applications, from natural language processing and image recognition to predictive analytics. This capability allows businesses to innovate and stay competitive in a rapidly evolving technological landscape. The support for complex AI models and applications directly contributes to improved product offerings and business processes​.

Key Player Analysis

NVIDIA remains a leader in the North America AI server market due to its consistent focus on innovation and high-performance AI hardware. In March 2025, NVIDIA introduced the Blackwell RTX PRO GPUs, targeting professionals working with AI, graphics, and simulation.

Intel has been actively reshaping its AI strategy to compete more effectively in the server market. In September 2024, Intel launched the Xeon 6 processors and Gaudi 3 AI accelerators, which are specially designed for handling complex AI workloads in enterprise data centers.

AMD has gained momentum in the AI server market through a combination of powerful chip designs and timely product launches. In October 2024, AMD introduced its 5th Gen EPYC processors and the Instinct MI325X accelerators, aiming to serve hyperscalers and AI developers with robust computing power. These products show AMD’s commitment to expanding its presence in AI infrastructure.

Top Key Players in the Market

• Intel
• NVIDIA
• AMD
• Google
• ARM
• Samsung
• Micron
• Others

Recent Developments

• In March 2025, NVIDIA introduced the Blackwell RTX PRO GPUs for workstations and servers, targeting professionals in design, development, data science, and creative fields. These GPUs offer enhanced AI and graphics performance, facilitating advanced visualization and simulation tasks.
• In March 2025, Micron announced the first dual shipping of HBM3E and SOCAMM products for AI servers, enhancing memory and storage solutions to support data-intensive AI workloads in data centers. ​
• In February 2025, Arm Holdings announced plans to launch its first in-house server chip, securing Meta Platforms as an initial customer. This initiative marks a strategic shift towards producing custom silicon for data center applications. ​

Report Scope