The Surging Data Center IT Semiconductors Market Set to Exceed $1.8 Trillion by 2030

A Profound Shift in the Data Center IT Ecosystem

According to Dell'Oro Group's recently released forecast report, the global market for Data Center IT Semiconductors and Components is on a trajectory to exceed an astonishing $1.8 trillion by the year 2030. This projection represents a significant upward revision since the previous report published in January 2026, influenced by a surge in data center capital expenditures and expansion in power capacities.

Baron Fung, Vice President of Research at Dell'Oro Group, pointed out that Artificial Intelligence (AI) is expected to lead this wave of investment, particularly in the area of accelerators, which will command the largest market share among components. The landscape of memory, storage, CPUs, and Network Interface Cards (NICs) is set to evolve in tandem with these accelerators, while constraints in supply chains may keep prices for memory and storage elevated over the coming years.

Key Drivers of Growth

The report highlights several critical trends fueling growth in the Data Center IT sector:
1. Power Consumption: The anticipated increase in server and storage components is expected to consume over 200 gigawatts of power in the next five years. Data centers will need to expand their power and support infrastructures to match this rising demand.

2. Pricing Trends: Although component prices, especially those for memory and storage, are expected to stabilize over the forecast period, this will be vital for fostering sustainable growth in the long run. As demand continues to grow, so too will the necessity for more efficient and cost-effective solutions.

3. Custom Silicon Advancements: The movement towards custom silicon is gaining momentum as major hyperscale providers seek enhanced efficiency and reduced operational costs. This shift may lead to further innovations in AI accelerators, CPUs, and NICs.

4. Scaling Needs: The rise in general-purpose servers that support inference and agentic AI demands will notably boost NIC growth as backend demands become more pronounced from scale-out AI networking needing further enhancements.

The Future Landscape

As we look ahead, the Data Center IT market will not only see growth in terms of monetary value but also profound advancements in technology. The focus will be on optimizing performance-to-power ratios and reducing costs through innovative architectural designs from the individual chip level up to entire rack configurations. The shift towards heterogeneous computing targeting various workload domains signifies a new era of efficiency, aiming to meet the diverse needs of modern data processing tasks.

Dell'Oro Group's five-year forecast offers a comprehensive and detailed analysis of the latest market trends, providing insights into manufacturers' revenue and unit shipments for key technologies including accelerators, CPUs, memory, NICs, and storage drives like HDDs and SSDs. For more in-depth information about the report and the future of the Data Center IT semiconductors market, reach out to them directly.

Conclusion

As AI and data center capabilities continue to intertwine and shape the future of technology, stakeholders in the tech industry should prepare to adapt to these changing dynamics. The data center's evolution reflects broader trends within the technology landscape, setting the stage for innovative solutions that could redefine the way we interact with digital systems worldwide. Dell'Oro Group’s findings underscore the significance of this market not just in financial metrics but also in technological advancement and infrastructure development.

For more information, inquiries about the report, and further details, connect with Dell'Oro Group either by phone at +1.650.622.9400 or visit their website at www.delloro.com.