United States Data Center Processor Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2031)

The US Data Center Processor Market report segments the industry into By Processor Type (GPU, CPU, FPGA, AI Accelerator), By Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, Others), By Architecture (x86, Non-x86 (ARM, Power and other processors)), and By Data Center Type (Enterprise, Colocation, Cloud Service Providers).

United States Data Center Processor Market Size

Compare market size and growth of United States Data Center Processor Market with other markets in Technology, Media and Telecom Industry

United States Data Center Processor Market Analysis

The United States Data Center Processor Market size is estimated at USD 16.54 billion in 2025, and is expected to reach USD 64.48 billion by 2031, at a CAGR of 25.46% during the forecast period (2025-2031).

With over 3,000 data centers, the United States is a global leader in data center infrastructure and a hub for artificial intelligence (AI) innovation. The rapid adoption of technologies like 5G, 6G, cloud computing, generative AI, and IoT has significantly boosted AI demand, alongside the expansion of advanced mega and large data centers. In 2023, U.S.-based institutions developed 61 prominent AI models, far surpassing the European Union's 21 and China's 15. This rapid AI growth has driven a sharp rise in AI-related regulations, increasing from just one in 2016 to 25 in 2023, with a 56.3% jump in the past year alone.

Nvidia Corporation, Intel Corporation, and Advanced Micro Devices Inc. currently lead the U.S. AI market. However, emerging players like Google, Inc. are gradually establishing their presence by introducing proprietary TPU and GPU chips designed for data centers.

The U.S. is expected to experience significant growth due to its increasing reliance on AI, robotics, and automation across industries such as manufacturing, IT, healthcare, tourism, transport and automotive. Strong government support and partnerships with chip and tech manufacturers further reinforce its leadership. For example, in September 2024, the United States and eight major companies launched the "Partnership for Global Inclusivity on AI," committing over USD 100 million to leverage AI for sustainable development in developing nations while ensuring safety, security, and trust in AI systems.

Rising AI Adoption Boosts Colocation Services with Strong Government Support

Colocation data centers are transforming to address the rising power demands of artificial intelligence (AI) workloads. Historically, data center racks consumed 5-7 kW of power, but AI has driven this requirement significantly higher. GPU nodes now need up to 10 kW each, with racks designed to handle 50 kW to 100 kW. In the U.S., cloud providers and colocation operators are collaborating to build GPU-based AI infrastructure. For instance, Oracle plans to deploy GPU-powered systems at a Digital Realty data center in Northern Virginia by May 2024, enhancing enterprise AI services through Digital Realty's advanced PlatformDigital solution. Oracle already operates 16 data centers in the region, ready for immediate use.

The U.S. government is a key enabler of AI advancements, allocating substantial funding annually to support innovation. By partnering with chip manufacturers and data center operators, it drives progress in CPUs, HPCs, and GPUs. In FY 2023, government agencies invested USD 1.8 billion in AI research and development, a figure that has more than tripled since FY 2018. For FY 2024, a proposed budget of USD 1.9 billion highlights AI's growing role in national priorities, reflecting its strategic importance.

AI's influence extends beyond data centers, reaching sectors like academia and government institutions. For example, the University of Illinois Urbana-Champaign’s (UIUC) National Center for Supercomputing Applications (NCSA) has upgraded its Radiant supercomputer with their Radiant private cloud system that includes 100 Intel Xeon nodes and six A100-80 GPU nodes, meeting the increasing demand for advanced computational capabilities.

United States Data Center Processor Industry Overview

The U.S. data center processor market is highly consolidated by prominent companies, including Intel Corporation, NVIDIA Corporation, Advanced Micro Devices Inc., Ampere Computing, and Arm Holdings PLC. These firms maintain their leadership by consistently delivering innovative technologies. To meet rising demand and align with government initiatives, they collaborate with cloud and colocation data center operators, providing advanced CPUs, GPUs, and AI Accelerators. Major players like Amazon Web Services, Inc,, Equinix, Inc., Google, Inc., Microsoft Corporation, and Digital Realty,Inc. have adopted cutting-edge processors, particularly from Intel and Nvidia, to enhance their data center capabilities.

United States Data Center Processor Market Leaders

  1. Intel Corporation

  2. Advanced Micro Devices Inc.

  3. Ampere Computing

  4. NVIDIA Corporation

  5. ARM Holdings

  6. *Disclaimer: Major Players sorted in no particular order
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United States Data Center Processor Market News

  • November 2024: Nebius Group N.V., a pioneer in AI infrastructure, has entered the U.S. market by introducing its first NVIDIA GPU cluster in Kansas City, MO. Scheduled to begin operations in Q1 2025, the facility will start with NVIDIA Hopper GPUs and later adopt the energy-efficient NVIDIA Blackwell platform. With an initial 5 MW capacity, scalable up to 40 MW to support around 35,000 GPUs, it aims to meet the rising AI demands of American data centers and other sectors.
  • December 2023: Intel Corporation has launched an innovative lineup of artificial intelligence (AI) solutions, streamlining AI adoption across data centers, cloud systems, networks, edge devices, and personal computers. The 5th Generation Intel Xeon processor family, designed with AI acceleration in every core for data centers, enhances inference performance by 42%, achieves sub-100 millisecond latency for large language models (LLMs) under 20 billion parameters, and consistently leads in MLPerf benchmarks. This establishes it as the only mainstream data center processor with integrated AI functionality.

United States Data Center Processor Market Report - Table of Contents

1. INTRODUCTION

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

2. RESEARCH METHODOLOGY

  • 2.1 Research Framework
  • 2.2 Secondary Research
  • 2.3 Primary Research
  • 2.4 Data Triangulation and Insight Generation

3. EXECUTIVE SUMMARY

4. MARKET INSIGHT

  • 4.1 Market Overview
  • 4.2 Market Dynamics
    • 4.2.1 Market Drivers
    • 4.2.1.1 Rising Investments in Artificial Intelligence, Internet of Things, and 5G Fuel Data Center Development in the United States
    • 4.2.1.2 Government Support and Increased Funding Drive AI and Processor Growth in the United States
    • 4.2.2 Market Restraints
    • 4.2.2.1 United States Export Restrictions on AI and High-Performance Computing GPUs Impact Demand for Leading Processor Manufacturers
  • 4.3 Value Chain / Supply Chain Analysis
  • 4.4 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.4.1 Bargaining Power of Suppliers
    • 4.4.2 Bargaining Power of Consumers
    • 4.4.3 Threat of New Entrants
    • 4.4.4 Threat of Substitutes
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 Market Segmentation - By Processor Type
    • 5.1.1 GPU
    • 5.1.2 CPU
    • 5.1.3 FPGA
    • 5.1.4 AI Accelerator
  • 5.2 Market Segmentation - By Application
    • 5.2.1 Advanced Data Analytics
    • 5.2.2 AI/ML Training and Inferences
    • 5.2.3 High Performance Computing
    • 5.2.4 Security and Encryption
    • 5.2.5 Network Functions
    • 5.2.6 Others
  • 5.3 Market Segmentation - By Architecture
    • 5.3.1 x86
    • 5.3.2 Non-x86 (ARM, Power and other processors)
  • 5.4 Market Segmentation - By Data Center Type
    • 5.4.1 Enterprise
    • 5.4.2 Colocation
    • 5.4.3 Cloud Service Providers

6. COMPETITIVE LANDSCAPE

  • 6.1 Company Profiles
    • 6.1.1 Intel Corporation
    • 6.1.2 Advanced Micro Devices Inc.
    • 6.1.3 Ampere Computing
    • 6.1.4 NVIDIA Corporation
    • 6.1.5 ARM Holdings
    • 6.1.6 SAPEON Inc.
    • 6.1.7 Broadcom Inc.
    • 6.1.8 IBM Corporation
    • 6.1.9 Marvell Technology, Inc.
    • 6.1.10 Rebellions Inc.
  • *List Not Exhaustive

7. INVESTMENTS ANALYSIS

8. MARKET OPPORTUNITIES AND FUTURE TRENDS

9. ABOUT US

  • 9.1 Industries Covered
  • 9.2 Illustrative List of Clients in the Industry
  • 9.3 Our Customized Research Capabilities
**Subject to Availability
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United States 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 United States 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
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
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United States Data Center Processor Market Research FAQs

How big is the United States Data Center Processor Market?

The United States Data Center Processor Market size is expected to reach USD 16.54 billion in 2025 and grow at a CAGR of 25.46% to reach USD 64.48 billion by 2031.

What is the current United States Data Center Processor Market size?

In 2025, the United States Data Center Processor Market size is expected to reach USD 16.54 billion.

Who are the key players in United States Data Center Processor Market?

Intel Corporation, Advanced Micro Devices Inc., Ampere Computing, NVIDIA Corporation and ARM Holdings are the major companies operating in the United States Data Center Processor Market.

What years does this United States Data Center Processor Market cover, and what was the market size in 2024?

In 2024, the United States Data Center Processor Market size was estimated at USD 12.33 billion. The report covers the United States Data Center Processor Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the United States Data Center Processor Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.

United States Data Center Processor Industry Report

Statistics for the 2025 United States Data Center Processor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States 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.

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