Asia Pacific Data Center Processor Market Size
Asia Pacific Data Center Processor Market Analysis
The Asia Pacific Data Center Processor Market size is estimated at USD 27.85 billion in 2025, and is expected to reach USD 126.85 billion by 2031, at a CAGR of 28.75% during the forecast period (2025-2031).
- AI is transforming the management of user-generated data, enhancing service quality and creating new revenue streams. In Asia Pacific, industries are rapidly adopting AI, highlighting its broad impact. Beyond AI infrastructure, customer service is a key area of growth. Organizations use AI to enhance engagement, streamline processes, and deliver personalized experiences. AI and GenAI are reshaping customer interactions, enabling more human-like and empathetic engagements.
- NVIDIA is strengthening its AI presence in Japan and Indonesia, enhancing its Asia Pacific leadership. While scaling back in China, the company is advancing in other markets. Partnering with Japanese cloud providers like SoftBank Corp., GMO Internet Group, and KDDI, NVIDIA is transforming robotics, automotive, healthcare, and telecom. Supported by Japan's Ministry of Economy, Trade and Industry (METI), these providers are deploying AI data centers across Japan, driving smart cities, digital healthcare, and advanced manufacturing.
- The Asia Pacific Data Center Processor market is growing rapidly due to technological advancements. Increased AI and machine learning adoption drives GPU demand, while quantum computing challenges traditional CPU and GPU models. Cloud computing expansion boosts processor demand, and competition among key players fosters innovation. Energy-efficient processors are gaining traction as data centers aim to cut costs and emissions. The integration of edge computing and 5G further accelerates demand, ensuring growth during the forecast period.
Asia Pacific Data Center Processor Market Trends
The Role of GPUs in Accelerating AI Data Center Growth
- GPUs drive AI-driven data center growth in Asia Pacific by enabling high-performance computing and parallel processing. Rising AI adoption boosts GPU-powered server integration, fostering collaborations between global tech providers and regional players. GPU-centric infrastructure is key to scalable, AI-ready data centers in Asia.
- The Asia Pacific GPU market is dominated by key players such as NVIDIA Corporation, Intel Corporation, Qualcomm Incorporated, among others.For instance,On 25 October 2024, Reliance and Nvidia announced plans to establish a 1GW (gigawatt) data center in Jamnagar, Gujarat, as part of their strategic collaboration to advance artificial intelligence (AI) infrastructure in India.
- India's government plans to invest ₹5,000 crore from the ₹10,372 crore India AI Mission budget into GPUs, with a significant share likely going to NVIDIA. This move aims to strengthen AI infrastructure by providing advanced GPUs and subsidized computing power to startups.
- The increased adoption of AI technologies across industries, coupled with government initiatives like this, will accelerate the need for high-performance computing infrastructure. Additionally, the growing focus on AI-driven applications, such as natural language processing and computer vision, will further boost GPU demand in data centers across the region.
China Dominates the GPU Market in the Asia-Pacific Region
- China's data center sector is driven by advancements in cloud computing, AI, and automation. Leading cloud providers are adopting high-performance processors like CPUs, GPUs, and AI accelerators. Major firms, including Baidu Inc., ByteDance Ltd., Tencent Holdings Ltd., and Alibaba Group Holding Ltd., have pledged USD 1 billion for 2024 and USD 4 billion for 2025 chip deliveries. ByteDance, owning 10,000 Nvidia GPUs, has ordered 70,000 A800 chips worth USD 700 million for next year.
- China supports AI innovation with significant funding and partnerships with chipmakers and data centers. To counter U.S. restrictions, it allocated over USD 1.75 billion in subsidies to 190 semiconductor firms, including USD 267 million to SMIC. This funding helps Chinese firms develop AI tools, reducing reliance on U.S. technology. The rise in AI innovation is driving demand for AI data centers, which, in turn, is boosting the growth of GPUs and CPUs.
Asia Pacific Data Center Processor Industry Overview
- The Asia Pacific data center processor market faces intense competition as key players vie for market share and technological leadership. Companies like Intel Corporation, NVIDIA Corporation, Ampere Computing, IBM, and Qualcomm Incorporated dominate with extensive product portfolios and advanced expertise. They invest heavily in R&D to deliver cutting-edge processors meeting diverse consumer and industry needs.
- In October 2024, Nvidia has secured a deal to provide its Blackwell AI processors to Reliance. This collaboration comes as a massive data center is being established in Gujarat, a revelation made at the Nvidia AI summit in Mumbai. When it becomes operational, the data center, with a capacity of one gigawatt, is expected to be instrumental in enhancing extensive AI operations.
Asia Pacific Data Center Processor Market Leaders
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Intel Corporation
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NVIDIA Corporation
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Ampere Computing
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IBM
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Qualcomm Incorporated
- *Disclaimer: Major Players sorted in no particular order
Asia Pacific Data Center Processor Market News
- November 2024: Japan's Rakuten Group is expanding its partnership with Ampere Computing to reduce AI computing power consumption. Successful trials showed a 36% energy reduction and 11% less space usage per rack for Rakuten Cloud's container-based services. Rakuten will deploy Ampere Arm CPUs across its data centers and scale their use through 2025 to enhance energy efficiency amid rising AI demand.
- November 2024: IBM plans to offer AMD's Instinct MI300X GPUs as a service through IBM Cloud. These GPUs are scheduled for release on the platform in early 2025, aiming to enhance performance and power efficiency for generative AI models and high-performance computing applications.
- October 2024: In a significant development, Nvidia has secured a deal to provide its Blackwell AI processors to Reliance. This collaboration comes as a massive data center is being established in Gujarat, a revelation made at the Nvidia AI summit in Mumbai. When it becomes operational, the data center, with a capacity of one gigawatt, is expected to be instrumental in enhancing extensive AI operations.
Asia Pacific Data Center Processor Industry Segmentation
- Data centers house and manage critical applications and data, using computing and storage networks for efficient delivery. Processors—GPUs, CPUs, and TPUs—are central to their operation. GPUs handle multitasking, excelling in graphics rendering and AI tasks. CPUs, with multi-core architecture, support parallel processing. TPUs, designed for machine learning, stand out from GPUs, which have transitioned from graphics to AI applications.
- Asia Pacific Data Center Processor Market is Segmented by Processor Type (CPU, GPU, FPGA, AI Accelerators), by Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, and Others), by Architecture (x86 and Non-x86 (ARM, Power and other processors), and by Data Center Type (Enterprise, Colocation and Cloud Service Providers). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).
Market Segmentation - By Processor Type | GPU |
CPU | |
FPGA | |
AI Accelerator | |
Market Segmentation - By Application | Advanced Data Analytics |
AI/ML Training and Inferences | |
High Performance Computing | |
Security and Encryption | |
Network Functions | |
Others | |
Market Segmentation - By Architecture | x86 |
Non-x86 (ARM, Power and other processors) | |
Market Segmentation - By Data Center Type | Enterprise |
Colocation | |
Cloud Service Providers |
Asia Pacific Data Center Processor Market Research FAQs
How big is the Asia Pacific Data Center Processor Market?
The Asia Pacific Data Center Processor Market size is expected to reach USD 27.85 billion in 2025 and grow at a CAGR of 28.75% to reach USD 126.85 billion by 2031.
What is the current Asia Pacific Data Center Processor Market size?
In 2025, the Asia Pacific Data Center Processor Market size is expected to reach USD 27.85 billion.
Who are the key players in Asia Pacific Data Center Processor Market?
Intel Corporation, NVIDIA Corporation, Ampere Computing, IBM and Qualcomm Incorporated are the major companies operating in the Asia Pacific Data Center Processor Market.
What years does this Asia Pacific Data Center Processor Market cover, and what was the market size in 2024?
In 2024, the Asia Pacific Data Center Processor Market size was estimated at USD 19.84 billion. The report covers the Asia Pacific Data Center Processor Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Asia Pacific Data Center Processor Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
Asia Pacific Data Center Processor Industry Report
Statistics for the 2025 Asia Pacific Data Center Processor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia Pacific Data Center Processor analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.