China Data Center Processor Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

China Data Center Processor Market is Segmented by Processor Type (GPU, CPU and More), Application( Advanced Data Analytics, AI/ML Training & Inference, High-Performance Computing and More), Architecture (X86, ARM-Based, RISC-V and Power), Data Center Type (Enterprise, Colocation, Cloud Service Providers / Hyperscalers). The Market Forecasts are Provided in Terms of Value (USD).

China Data Center Processor Market Size and Share

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China Data Center Processor Market Analysis by Mordor Intelligence

China data center processor market stood at USD 2.51 billion in 2025 and is forecast to reach USD 6.69 billion by 2030, advancing at a 21.6% CAGR. This expansion reflects Beijing’s strategic pivot toward technological self-sufficiency, large-scale cloud investments, and aggressive infrastructure roll-outs under the “East Data, West Compute” program. Export restrictions on advanced foreign chips are simultaneously stimulating home-grown CPU, GPU, and AI-accelerator innovation while creating white-space opportunities for local manufacturers. Energy-efficiency rules capping Power Usage Effectiveness (PUE) at 1.5 for new facilities are driving preference for high-performance yet low-power processors, especially in western renewable-energy hubs 

Key Report Takeaways

  • By processor type, the CPU segment led with 34.2% of China data center processor market share in 2024, while AI Accelerators/ASICs are poised for the fastest 22.3% CAGR through 2030. 
  • By application, AI/ML Training & Inference accounted for 30.7% share of the China data center processor market size in 2024; Advanced Data Analytics is projected to grow at a 21.7% CAGR to 2030. 
  • By architecture, x86 retained 47.9% share in 2024; RISC-V processors are forecast to expand at a 23.1% CAGR. 
  • By data center type, cloud service providers held 43.7% of China data center processor market share in 2024, whereas colocation facilities are forecast to expand at a 23.5% CAGR through 2030.

Segment Analysis

By Processor Type: AI Accelerators Drive Next-Generation Computing

CPU products retained leadership with 34.2% China data center processor market share in 2024, reflecting their suitability for versatile cloud and enterprise workloads. AI Accelerator/ASIC units, however, are expanding at a 22.3% CAGR as hyperscalers pursue efficiency for model training and inference. GPU deployments continue to rise for both AI and graphics, while FPGA sales meet niche reconfigurable computing demand. 

The migration toward accelerator-rich servers is reshaping procurement: DeepSeek will deploy 32,000 Ascend 910C chips in its next model, and Biren Technology plus Moore Threads are raising fresh capital to position as domestic “NVIDIA alternatives”. This bifurcation is widening the addressable China data center processor market and encouraging cross-licensing among local vendors.

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Note: Segment shares of all individual segments available upon report purchase

By Application: AI/ML Training Reshapes Infrastructure Demands

AI/ML Training & Inference consumed 30.7% of the China data center processor market size in 2024, underscoring the sector’s pivot toward intelligence-first services. Advanced Data Analytics leads future growth at 21.7% CAGR, reflecting enterprises’ demand for real-time insights. High-Performance Computing serves academia and national supercomputing centers, while Security & Encryption gains traction amid heightened cyber threats. 

National AI compute capacity is set to reach 1,037 EFLOPS by 2025. Tencent and Alibaba now integrate self-designed ASICs in their stacks, supported by USD 912 billion of public AI research investment. This vibrant startup ecosystem pressures processor vendors to supply cost-effective yet powerful silicon

By Architecture: RISC-V Disrupts Traditional x86 Dominance

x86 still commanded 47.9% share in 2024, buoyed by a mature software base. RISC-V, however, is surging at a 23.1% CAGR as developers exploit the open ISA to tailor chips for cloud and edge workloads. ARM solutions serve mobile-cloud convergence, and POWER architectures endure in selected HPC clusters. Loongson’s 32-core 3D5000, formed from two chiplets and drawing 130-170 W, illustrates how local firms leverage RISC-V for data-center scale. Government-backed RISC-V Innovation Alliance partnerships and new training centers further erode legacy lock-in.

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Note: Segment shares of all individual segments available upon report purchase

By Data Center Type: Cloud Providers Lead Infrastructure Transformation

Cloud Service Providers remain the principal buyers of processors, fueling more than half of server demand. The colocation market is growing fastest at 23.5% CAGR as enterprises balance cloud agility with dedicated control. Enterprise-owned facilities persist where data residency or compliance rules dictate isolated hardware. 

State-owned operators China Mobile and China Telecom have invested 239 billion yuan in “East Data, West Compute” hubs, strengthening public-sector leverage over compute capacity. The shift supports domestic chip suppliers through bulk orders tied to procurement mandates.

China Data Center Processor Market
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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Eastern metros such as Beijing, Shanghai, and Guangzhou still host the densest concentration of data centers, but face strict power-quota ceilings and land scarcity. Western provinces—Guizhou, Inner Mongolia, Xinjiang—are now absorbing compute-intensive workloads as renewable energy and cooler climates lower operating costs 

Talent pools remain skewed eastward; Beijing, Shanghai, and Shenzhen aggregate most chip-design engineers, giving local incubators a head start on next-generation CPU and GPU projects. Western facilities thus favor standardized, energy-efficient processors that can be operated remotely while local universities scale semiconductor curricula. 

Environmental rules are diverging: Beijing bans new data centers with PUE above 1.5, whereas western authorities incentivize >80% renewable power. Processor vendors are tailoring line-ups accordingly—offering low-power SKUs for urban cores and high-density accelerators for renewable-rich regions.

Competitive Landscape

The China data center processor market presents a dual track: foreign leaders dominate ultra-high-end GPUs, yet domestic challengers gain share through policy support and niche specialization. Chinese vendors follow two playbooks. First, parity seekers pump R&D to match flagship performance; Ascend 910C now delivers 60% of H100 inference throughput. Second, cost disruptors exploit mandatory local content, winning public contracts even at modest speeds. AMD’s 2024 data-center revenue surge to USD 12.6 billion shows foreign brands can still thrive by emphasizing energy efficiency and rapid roadmap cadence. 

Hyperscalers are meanwhile designing custom ASICs to sidestep traditional suppliers. DeepSeek’s software-led AI breakthroughs illustrate how optimization can offset raw silicon gaps, compelling chipmakers to bundle hardware with tailored toolchains and ecosystem services.

China Data Center Processor Industry Leaders

  1. Intel Corporation

  2. NVIDIA Corporation

  3. Ampere Computing

  4. Arm Ltd.

  5. Advanced Micro Devices Inc.

  6. *Disclaimer: Major Players sorted in no particular order
China Data Center Processor Market Concentration
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Recent Industry Developments

  • February 2025: DeepSeek unveiled an open-source LLM rivaling GPT-4 at a fraction of cost, triggering a 17% slide in NVIDIA’s share price and spotlighting local AI competitiveness.
  • January 2025: AMD posted record USD 12.6 billion 2024 data-center revenue, up 94% YoY, with EPYC and AI products exceeding USD 5 billion.
  • December 2024: U.S. BIS added 140 entities to the Entity List and tightened controls on advanced semiconductors and tools.
  • December 2024: Biren Technology raised CNY 2 billion (USD 280 million) from Guangzhou government investors following export-control placement

Table of Contents for China Data Center Processor Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Cloud?service hyperscalers shift toward AI-centric GPU clusters
    • 4.2.2 Beijing's East Data West Compute project accelerating regional data-center builds
    • 4.2.3 Mandatory domestic-content targets for government workloads
    • 4.2.4 Rapid adoption of liquid-cooling enabling faster processor refresh cycles
    • 4.2.5 Emergence of home-grown RISC-V CPUs in custom servers
    • 4.2.6 China's forthcoming AI-focused VAT rebates (similar to the earlier integrated-circuit tax incentives) will lower effective processor acquisition costs for certified data-center operators
  • 4.3 Market Restraints
    • 4.3.1 U.S. export controls on advanced process nodes
    • 4.3.2 Stricter energy-use quotas for hyperscale facilities
    • 4.3.3 Funding volatility for fab-less AI-chip start-ups
    • 4.3.4 Shortage of senior chip-architecture talent (under-the-radar)
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Assesment of Macroeconomic Factors on the Market

5. MARKET SIZE and GROWTH FORECASTS (VALUE, USD BILLION)

  • 5.1 By Processor Type (Value)
    • 5.1.1 GPU
    • 5.1.2 CPU
    • 5.1.3 FPGA
    • 5.1.4 AI Accelerator/ASIC
  • 5.2 By Application (Value)
    • 5.2.1 Advanced Data Analytics
    • 5.2.2 AI/ML Training and Inference
    • 5.2.3 High-Performance Computing
    • 5.2.4 Security and Encryption
    • 5.2.5 Network Functions Virtualisation
    • 5.2.6 Others
  • 5.3 By Architecture (Value)
    • 5.3.1 x86
    • 5.3.2 ARM-based
    • 5.3.3 RISC-V
    • 5.3.4 Power
  • 5.4 By Data Center Type (Value)
    • 5.4.1 Enterprise
    • 5.4.2 Colocation
    • 5.4.3 Cloud Service Providers / Hyperscalers

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Intel Corporation
    • 6.4.2 NVIDIA Corporation
    • 6.4.3 Advanced Micro Devices Inc.
    • 6.4.4 Huawei Technologies Co., Ltd. (HiSilicon)
    • 6.4.5 Alibaba Group T-Head Semiconductor
    • 6.4.6 Baidu Inc. Kunlun Chip
    • 6.4.7 Ampere Computing
    • 6.4.8 Arm Ltd.
    • 6.4.9 SAPEON Inc.
    • 6.4.10 Broadcom Inc.
    • 6.4.11 IBM Corporation
    • 6.4.12 Moore Threads Technology Co., Ltd.
    • 6.4.13 Shanghai Biren Technology Co., Ltd.
    • 6.4.14 Zhaoxin Semiconductor Corp.
    • 6.4.15 Loongson Technology Corp. Ltd.
    • 6.4.16 Cambricon Technologies Corp. Ltd.
    • 6.4.17 Hygon Information Technology Co., Ltd.
    • 6.4.18 Phytium Technology Co., Ltd.
    • 6.4.19 Tenstorrent Inc.
    • 6.4.20 Esperanto Technologies Inc.

7. MARKET OPPORTUNITIES and FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
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China Data Center Processor Market Report Scope

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.

The China 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).

By Processor Type (Value) GPU
CPU
FPGA
AI Accelerator/ASIC
By Application (Value) Advanced Data Analytics
AI/ML Training and Inference
High-Performance Computing
Security and Encryption
Network Functions Virtualisation
Others
By Architecture (Value) x86
ARM-based
RISC-V
Power
By Data Center Type (Value) Enterprise
Colocation
Cloud Service Providers / Hyperscalers
By Processor Type (Value)
GPU
CPU
FPGA
AI Accelerator/ASIC
By Application (Value)
Advanced Data Analytics
AI/ML Training and Inference
High-Performance Computing
Security and Encryption
Network Functions Virtualisation
Others
By Architecture (Value)
x86
ARM-based
RISC-V
Power
By Data Center Type (Value)
Enterprise
Colocation
Cloud Service Providers / Hyperscalers
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Key Questions Answered in the Report

What is the current size of the China data center processor market?

The market is valued at USD 2.51 billion in 2025 and is projected to hit USD 6.69 billion by 2030.

How are liquid-cooling technologies influencing the market?

They enable rack densities up to 80 kW, shorten processor refresh cycles, and help operators meet the PUE ≤ 1.5 regulation for new data centers

Which processor segment is growing fastest?

AI Accelerator/ASIC units are expanding at a 22.3% CAGR as hyperscalers rebuild fleets for large language models.

Why are RISC-V processors important for China?

RISC-V’s open architecture reduces foreign IP dependence and is growing at a 23.1% CAGR, supported by government alliances and training programs.

Page last updated on: June 18, 2025