Global Server Market Hits Record $112.4 Billion in Q3 as AI Infrastructure Spending Surges: IDC

The global server market reached an all-time high in the third quarter of 2025, driven by aggressive investment in AI infrastructure by hyperscalers and cloud service providers, according to new data from International Data Corporation (IDC).

IDC’s Worldwide Quarterly Server Tracker shows vendor revenue climbed to $112.4 billion during the quarter, representing a 61% year-over-year increase compared with the same period in 2024. The performance marks one of the fastest growth rates ever recorded for the server industry and reflects accelerating demand for high-density compute systems designed to support artificial intelligence workloads.

Servers equipped with embedded GPUs emerged as the primary growth engine, accounting for more than half of total market revenue in the quarter. Revenue from GPU-accelerated servers rose 49.4% year over year, as cloud providers continued large-scale deployments to support generative AI, machine learning and high-performance computing applications. IDC said the pace of adoption has nearly doubled the size of the server market compared with last year, with cumulative revenue for the first three quarters of 2025 reaching $314.2 billion.

While x86 systems continued to dominate in absolute terms, growth was increasingly skewed toward non-x86 architectures. Revenue from x86 servers rose 32.8% to $76.3 billion, while non-x86 server revenue surged 192.7% year over year to $36.2 billion, reflecting growing demand for specialized platforms optimized for AI acceleration and high-throughput workloads.

IDC noted that hyperscalers remain at the forefront of deployment activity, but adoption is expanding beyond cloud providers. Research institutions and universities are beginning to roll out large AI-focused infrastructure projects, contributing to sustained momentum across the market.

Regionally, the United States recorded the fastest growth, with server revenue increasing 79.1% year over year, supported by a 105.5% jump in accelerated server sales. Canada followed closely with nearly 70% growth, while China posted a 37.6% increase, accounting for close to one-fifth of global quarterly revenue. Other regions, including Asia-Pacific excluding Japan and China, Europe, the Middle East and Africa, and Japan, also delivered strong double-digit growth, while Latin America lagged with low single-digit expansion.

Among server vendors, Dell Technologies maintained its leadership position, supported by strong demand for accelerated systems. Supermicro ranked second by revenue share despite a year-over-year decline, while IEIT Systems and Lenovo competed closely for third place. Hewlett Packard Enterprise rounded out the top five vendors globally.

IDC said it expects server demand to remain elevated as AI adoption continues to expand, with vendors reporting record order backlogs and customers deploying increasingly compute-dense infrastructure to support next-generation workloads.