Data Center Accelerator Market to Reach $97.8 Billion by 2032, Driven by AI and ML Adoption | DataM Intelligence

Investments in energy-efficient computing solutions accelerate the global data center accelerator market.

AUSTIN, TX, UNITED STATES, September 15, 2025 /EINPresswire.com/ -- According to DataM Intelligence, the Data Center Accelerator Market reached US$ 17.3 billion in 2024 and is expected to reach US$ 97.8 billion by 2032, growing at a robust CAGR of 24.18% during the forecast period 2025–2032. The growth is primarily driven by the rising deployment of AI and deep learning applications, increasing data center traffic, and the demand for energy-efficient computing solutions. Among product types, GPUs dominate the market due to their high parallel processing capabilities, making them ideal for AI training and inference workloads. Geographically, North America is the leading market, supported by advanced hyperscale data center infrastructure, high technology adoption, and significant investments in next-generation computing systems.

The Data Center Accelerator Market is witnessing exponential growth, fueled by the increasing adoption of high-performance computing, artificial intelligence (AI), and machine learning (ML) workloads. Data center accelerators, including GPUs, FPGAs, and ASICs, significantly enhance computing efficiency, reduce latency, and accelerate processing speeds for complex data-intensive operations. With the surge in cloud computing, big data analytics, and edge computing, accelerators have become critical components in modern data centers, enabling enterprises to handle massive computational demands while optimizing power and space utilization.

𝗚𝗲𝘁 𝗮 𝗦𝗮𝗺𝗽𝗹𝗲 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗥𝗲𝗽𝗼𝗿𝘁 (𝗨𝘀𝗲 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗘𝗺𝗮𝗶𝗹 𝗜𝗗 𝗳𝗼𝗿 𝗮 𝗤𝘂𝗶𝗰𝗸 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗲): https://www.datamintelligence.com/download-sample/data-center-accelerator-market

Key Highlights from the Report:

➤ GPUs are the largest product segment in the global data center accelerator market.
➤ North America leads due to its advanced hyperscale data center infrastructure.
➤ AI and ML applications are the primary drivers of accelerator adoption.
➤ FPGA and ASIC accelerators are gaining traction for specialized workloads.
➤ Rising investments in high-performance and energy-efficient solutions are driving growth.
➤ Cloud service providers are increasingly integrating accelerators to optimize performance.

United States: Recent Industry Developments:

In July 2025, CoreWeave announced a $6 billion investment to construct a new AI-focused data center in Pennsylvania. The facility will initially consume 100 MW of power, with plans to scale up to 300 MW, creating approximately 600 construction jobs and 70 full-time roles upon launch.

In June 2025, Microsoft revealed plans to invest $80 billion in fiscal 2025 to develop AI-enabled data centers. More than half of this expenditure will target the United States, underscoring the nation's leadership in AI infrastructure development.

In May 2025, Amazon pledged at least $20 billion to expand its data centers in Pennsylvania, aligning with the state's growing significance in AI infrastructure development.

Japan: Recent Industry Developments:

In March 2025, Mitsubishi Corp. and JFE announced plans to build an AI-focused data center in Kawasaki, Japan, utilizing high-performance semiconductors. This development supports the growing demand for data center chips driven by generative AI workloads.

In April 2025, new entrants to Japan's data center market, including Ada Infrastructure, CapitaLand, and CyrusOne, began operations, reflecting the country's rapid digital transformation and increasing attractiveness for data center investments.

In May 2025, Japan's data center market experienced rapid growth, becoming an attractive investment target for both domestic and overseas investors, as merger and acquisition activity in the sector hit record levels.

Market Segmentation:

The Data Center Accelerator Market is segmented by product type, end-user, and deployment type.

Product Type: The market includes GPUs (Graphics Processing Units), FPGAs (Field-Programmable Gate Arrays), and ASICs (Application-Specific Integrated Circuits). GPUs dominate due to their ability to perform large-scale parallel processing, ideal for AI, ML, and deep learning workloads. FPGAs provide flexibility and reconfigurability for specialized tasks, while ASICs are tailored for specific applications like AI inference and cryptocurrency mining.

End-User: Key consumers include hyperscale data centers, enterprise data centers, cloud service providers, and government organizations. Hyperscale data centers lead adoption due to their substantial AI workloads and high-performance computing requirements, while enterprises leverage accelerators to improve application performance, reduce operational costs, and enhance computational efficiency.

Deployment Type: Accelerators are deployed in on-premises data centers and cloud-based infrastructures. Cloud deployments are rapidly growing due to scalability, flexibility, and cost advantages. Organizations increasingly rely on cloud accelerators to efficiently manage resources and meet growing computational demands.

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Regional Insights:

The regional dynamics of the data center accelerator market highlight North America as the largest market, followed by Europe, Asia Pacific, and the Rest of the World (RoW).

North America: The U.S. is a key driver in North America due to major hyperscale cloud operators like AWS, Microsoft Azure, and Google Cloud. Investments in AI research and next-generation computing infrastructure support robust accelerator adoption.

Europe: Countries like Germany, the U.K., and France are investing heavily in high-performance computing facilities and AI-driven initiatives, contributing to market growth.

Asia Pacific: Rapid cloud infrastructure expansion, rising AI and IoT adoption, and government support for digital transformation projects are driving growth in China, Japan, and India.

Rest of the World (RoW): Emerging markets in the Middle East, Africa, and Latin America are witnessing increased demand due to growing internet penetration, digitalization, and adoption of cloud computing.

Market Dynamics:

Market Drivers
The data center accelerator market is propelled by the increasing adoption of AI and ML workloads, growing demand for high-performance computing, and rising data traffic in cloud and hyperscale data centers. Accelerators provide superior computational performance while optimizing energy consumption, making them a preferred choice for both enterprises and cloud service providers. Additionally, the expansion of edge computing and data-intensive applications, such as autonomous vehicles, video analytics, and genomics, is further boosting adoption.

Market Restraints
High capital expenditure and operational costs can limit adoption, particularly among small and medium-sized enterprises. Integration challenges with existing IT infrastructure and the need for skilled personnel to manage accelerators may also hinder growth. Rapid technological advancements can lead to obsolescence, adding uncertainty to long-term investments.

Market Opportunities
Opportunities lie in energy-efficient accelerators, AI-driven cloud services, and specialized workload solutions. Vendors developing low-power, high-performance accelerators can attract sustainability-focused organizations and hyperscale data centers. Furthermore, growing AI adoption in emerging markets presents opportunities for new deployments. Strategic collaborations between hardware vendors and cloud providers are likely to accelerate market penetration and innovation.

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Frequently Asked Questions (FAQs)

◆ How big is the Global Data Center Accelerator Market in 2024?
◆ Who are the leading players in the data center accelerator market?
◆ What is the projected CAGR of the data center accelerator market?
◆ What are the market forecasts for GPUs, FPGAs, and ASICs in data centers?
◆ Which region is expected to dominate the data center accelerator market by 2032?

Company Insights:
Key players in the data center accelerator market include:

• NVIDIA Corporation
• Intel Corporation
• Advanced Micro Devices (AMD)
• Xilinx, Inc. (Acquired by AMD)
• Google LLC
• Microsoft Corporation
• Amazon Web Services (AWS)
• Huawei Technologies Co., Ltd.
• Graphcore Ltd.

Conclusion:

The Global Data Center Accelerator Market is poised for significant growth, driven by advancements in AI, ML, cloud computing, and edge technologies. With GPUs, FPGAs, and ASICs at the core of high-performance computing, enterprises and hyperscale data centers are investing heavily in accelerators to meet growing computational demands. North America currently leads, but Asia Pacific and Europe are emerging as high-potential markets. Despite challenges such as high costs and integration complexities, opportunities in energy-efficient solutions, cloud adoption, and AI workloads promise a dynamic and prosperous future for the industry.

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