China Data Center Processor Market Size
| Study Period | 2021 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 2.51 Billion |
| Market Size (2031) | USD 8.00 Billion |
| CAGR (2025 - 2031) | 21.30% |
| Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
China Data Center Processor Market Analysis
The China Data Center Processor Market size is estimated at USD 2.51 billion in 2025, and is expected to reach USD 8.00 billion by 2031, at a CAGR of 21.3% during the forecast period (2025-2031).
China, second only to the United States, is a global leader in technology and a key data center hub. Beijing, the capital, holds nearly 25% of the world's hyperscale data center capacity. Cities like Beijing and Shanghai are spearheading generative AI adoption, reflecting rising interest from global city leaders. The country has heavily invested in AI data centers, equipping them with advanced servers, GPUs, CPUs, and AI accelerators to meet AI computing demands.
In 2024, China's AI industry is expected to invest over USD 1.4 trillion in technology development over the next six years. Chinese domestic tech firms are heavily investing in generative AI, with over 237,000 AI-related companies established in the first half of this year. The government supported this growth by channeling USD 184 billion into 9,623 AI firms through more than 20,000 transactions in 2023.
China's AI sector features key players like Nvidia Corporation, Intel Corporation, and Advanced Micro Devices, Inc., with Google LLC making notable advancements. Google has introduced TPU and GPU chips designed to enhance AI capabilities in data center operations.
China's AI industry is set to grow rapidly, driven by advancements in AI, cloud computing, IoT, and automation in industries like manufacturing, IT, healthcare, and automotive. The country leads the global AI robotics market, with its industrial robots accounting for half of annual global sales. This growth has spurred data center investments, with the government managing several facilities and integrating advanced CPUs and GPUs for AI-driven applications.
China Data Center Processor Market Trends
The Graphic Processing Unit (GPU) Segment is Expected to Drive the Growth of the Market
Data centers are increasingly utilizing Graphics Processing Units (GPUs) to overcome challenges in artificial intelligence (AI), media processing, and 3D visualization. The growing demand for high-performance computing (HPC) and visual cloud computing is driving the need for advanced processing power. By adopting GPUs, U.S. data centers efficiently manage increasing workloads and expanding data volumes, driven by AI advancements and virtualization.
In China, leading companies like Intel Corporation, Advanced Micro Devices, Inc., and NVIDIA Corporation dominate the GPU market, offering innovative solutions for data centers. In 2024, NVIDIA introduced major hardware upgrades, AI improvements for scientific applications, and updates to its CUDA-Q and cuPyNumeric platforms. The company also launched the H200 NVL PCIe GPU for air-cooled data centers and expanded its portfolio with the GB200 NVL4 form factor.
By the end of 2023, China's computing capacity, powered by CPUs, GPUs, and supercomputers, reached 230 Eflops, reflecting a 27% annual growth. Chinese data centers primarily rely on high-performance GPUs like the A100 and H100 from NVIDIA Corporation under optimal conditions. For less intensive tasks, they use alternatives such as the H20 or domestic options. Despite U.S. sanctions, China's local GPU startups have achieved significant progress in hardware and software over the past three years. GPU-driven computing capacity for AI training and inference surged 70% year-on-year, emphasizing China's focus on AI hardware amid global competition.
In 2024, U.S. sanctions targeted AI chips essential for data centers in China, restricting direct purchases of chips from NVIDIA Corporation. In response, Chinese companies sought alternatives by buying or leasing these chips directly from the U.S. market.
Government Backing Fuels Surge in Cloud Data Centers and Processor Startups Amidst Growing AI Adoption
China's data center sector is increasingly shaped 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 committed USD 1 billion for chip deliveries in 2024 and USD 4 billion for 2025. ByteDance, which already owns 10,000 Nvidia GPUs, has ordered nearly 70,000 A800 chips worth USD 700 million for next year.
The Chinese government actively supports AI innovation by providing substantial funding and fostering collaborations with chipmakers and data center operators. In response to U.S. restrictions, China allocated over USD 1.75 billion in subsidies to 190 domestic semiconductor firms, with Semiconductor Manufacturing International Corporation (SMIC) receiving USD 267 million. This financial backing has enabled Chinese companies to develop large language models and generative AI tools, reducing reliance on U.S. technology.
China cloud-based data centers primarily use CPUs from Nvidia Corporation and Advanced Micro Devices, Inc. (AMD), but U.S. trade restrictions have opened opportunities for Chinese GPU startups. Moore Threads has upgraded its KUAE AI data center solution, supporting up to 10,000 GPUs in a single cluster. Despite trade challenges, the company aims to expand globally, with its MTT S4000 chips offering 128 Tensor Cores, 48GB VRAM, and 768GBps memory bandwidth.
China Data Center Processor Industry Overview
The China data center processor market is highly consolidated led by key players such as Intel Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc., Ampere Computing LLC, and Arm Holdings PLC. These firms sustain their dominance by introducing cutting-edge technologies and solutions. To address growing demand and adhere to government regulations, they partner with cloud-based and colocation data center operators, delivering advanced CPUs, GPUs, and AI accelerators. Key industry participants, such as Digital Edge DC, Baidu Cloud, Alibaba Group Holding Limited, Princeton Digital Group, China Mobile Limited, and KDDI Corporation (Telehouse), have adopted these advanced processors.
However, geopolitical conflicts between China and the United States have resulted in a shortage of AI chips and GPUs in Chinese data centers, primarily due to the U.S. export restrictions on high-end Nvidia data center chip models. Furthermore, Chinese government policies have prohibited companies like Intel Corporation and Advanced Micro Devices, Inc. (AMD) from supplying processors for government servers, creating significant obstacles for these manufacturers. In response, new entrants such as Huawei Technologies Co., Ltd., Biren Technology and Moore Threads are stepping into the Chinese data center GPU market, offering locally developed GPUs to meet the increasing demand.
China Data Center Processor Market Leaders
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NVIDIA Corporation
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Intel Corporation
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Advanced Micro Devices Inc.
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Ampere Computing
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ARM Holdings
- *Disclaimer: Major Players sorted in no particular order
China Data Center Processor Market News
- November 2023: Baidu Inc. has opted to procure artificial intelligence chips from Huawei Technologies Co., Ltd., highlighting a shift in the Chinese tech sector amid increasing U.S. restrictions. The company ordered 1,600 units of Huawei's 910B Ascend AI chips, developed as an alternative to Nvidia's A100, for use in 200 servers. Huawei has already delivered more than 60% of the order, approximately 1,000 chips, to Baidu. The total value of the deal is estimated at around USD 61.83 million, with Huawei expected to fulfill the entire order by the end of 2024.
- March 2023: Nvidia, addressing the U.S. government's restrictions on exporting its flagship A100 and H100 GPUs to China, has launched a customized version called the H800 for the Chinese market. Leading Chinese companies, including Alibaba Group Holding Limited, Baidu, Inc., and Tencent Holdings Limited, have already adopted the H800, as confirmed by Nvidia. The NVIDIA H800-80G is an advanced GPU designed to deliver high performance for artificial intelligence and machine learning workloads in enterprise data centers. It caters specifically to the growing demand for AI-driven solutions in the region.
China 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.
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).
| 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 |
China Data Center Processor Market Research FAQs
How big is the China Data Center Processor Market?
The China Data Center Processor Market size is expected to reach USD 2.51 billion in 2025 and grow at a CAGR of 21.30% to reach USD 8.00 billion by 2031.
What is the current China Data Center Processor Market size?
In 2025, the China Data Center Processor Market size is expected to reach USD 2.51 billion.
Who are the key players in China Data Center Processor Market?
NVIDIA Corporation, Intel Corporation, Advanced Micro Devices Inc., Ampere Computing and ARM Holdings are the major companies operating in the China Data Center Processor Market.
What years does this China Data Center Processor Market cover, and what was the market size in 2024?
In 2024, the China Data Center Processor Market size was estimated at USD 1.98 billion. The report covers the China Data Center Processor Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the China Data Center Processor Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
China Data Center Processor Industry Report
Statistics for the 2025 China Data Center Processor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China 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.
