
The global data center accelerator market size was valued at USD 17.67 billion in 2024 and is expected to grow at a CAGR of 24.7% from 2025 to 2030. Accelerators, including GPUs, FPGAs, and ASICs, are deployed to handle data-heavy operations more efficiently than traditional CPUs. The demand for accelerators is largely driven by hyperscale data centers and cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These companies require advanced hardware to meet the increasing computational needs of AI-driven applications. The increasing demand for artificial intelligence (AI) and machine learning capabilities, as industries utilize data analytics to improve decision-making processes.
Cloud computing expansion, particularly through hyperscale data centers, is another key driver. The rise of edge computing-where data is processed closer to its source for faster, real-time decision-making-also boosts accelerator adoption. The deployment of 5G networks is further driving demand for accelerators, as high-speed connectivity enables more complex, data-intensive applications like IoT, AR, and VR. Additionally, businesses are seeking energy-efficient solutions as they strive to reduce data center operational costs, where accelerators provide high computational power with lower energy consumption.
Processor Insights
The GPU segment accounted for the largest share of over 44% in 2024. The demand for GPUs in data centers is driven by the increasing volumes of big data, requiring advanced processing capabilities. GPUs excel in parallel processing, making them ideal for efficiently handling vast datasets and performing complex computations in big data analytics and real-time processing. Furthermore, the growth of cloud gaming and high-end graphics rendering also boosts GPU demand. These tasks require high computational power for rendering graphics at high speeds, with GPUs offering the performance necessary to meet the needs of cloud-based gaming platforms.
Type Insights
The cloud data center segment dominated the market in 2024. The increasing adoption of cloud infrastructure by enterprises has led to a significant demand for acceleration technologies like GPUs, FPGAs, and ASICs. These technologies are essential for handling complex workloads, including high-performance computing, AI, and machine learning, which are often deployed in cloud environments. As cloud data centers increasingly host AI and big data applications, accelerators become critical for managing large-scale data processing efficiently. Accelerators boost the performance of these applications, ensuring faster computation, enhanced scalability, and reduced latency, making them essential for modern cloud operations.
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Application Insights
The deep learning training segment dominated the market in 2024. The increasing demand for artificial intelligence (AI) and machine learning (ML) is a key driver for the deep learning training segment in the data center accelerator market. As industries adopt AI and ML technologies, the need for efficient deep learning training solutions grows, necessitating powerful accelerators. Innovations in hardware technologies, particularly in Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), and Field-Programmable Gate Arrays (FPGAs), further enhance processing capabilities tailored for deep learning tasks. These advancements enable faster data processing and model training, leading to higher performance and efficiency. Consequently, the enhanced capabilities of these accelerators encourage their greater deployment in data centers, supporting the growing computational demands of AI and ML applications across various sectors.
Regional Insights
North America data center accelerator market held the largest share of over 37% in the global market in 2024. Hyperscale data centers are expanding rapidly across North America, primarily driven by major cloud service providers like Amazon Web Services, Microsoft Azure, and Google Cloud. These large-scale facilities require data center accelerators, such as GPUs and ASICs, to handle the immense computational demands of AI, machine learning, and deep learning applications. Accelerators enhance computing power and efficiency, enabling faster processing of complex tasks while optimizing energy consumption. As AI adoption grows across industries, hyperscale data centers are increasingly relying on accelerators to meet the performance requirements of data-intensive workloads and improve overall operational efficiency.
Key Data Center Accelerator Companies:
The following are the leading companies in the data center accelerator market. These companies collectively hold the largest market share and dictate industry trends.
Advanced Micro Devices, Inc.
- Dell Inc.
- IBM Corporation
- Intel Corporation
- Lattice Semiconductor
- Lenovo Ltd.
- Marvell Technology Inc.
- Microchip Technology Inc.
- Micron Technology, Inc.
- NEC Corporation
- NVIDIA Corporation
- Qualcomm Incorporated
- Synopsys Inc.
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