Baron Fung

Vice President

Dell’Oro Group’s Data Center IT Semiconductors and Components research tracks the global market for key components used in data center servers and storage systems, including CPUs, accelerators, memory, storage, and network interface cards (NICs).

The research provides detailed analysis of revenue, unit and capacity shipments, pricing, and vendor market share, offering visibility into component supply and demand and their relationship to server and storage system deployments.

The research focuses on how demand for data center semiconductors and components is evolving alongside AI workloads, hyperscale cloud deployments, and supply-chain dynamics. It also examines how component shipments align with server and storage system deployments across cloud service providers and the broader market.

Because hyperscalers account for a significant share of demand for accelerators, CPUs, memory, storage, and network adapters, changes in their infrastructure deployments can have significant ripple effects across the global supply chain.

The Data Center IT market is on track to exceed $1 trillion in 2026, with servers and storage systems driving the majority of spending. While system hardware is becoming increasingly commoditized, differentiation is shifting toward semiconductors and components, including accelerators, CPUs, memory, storage, and networking interfaces.

Semiconductors and components are now primary drivers of innovation, cost structure, and performance in data center infrastructure. Growth in AI workloads is accelerating demand for accelerators, HBM, and Smart NICs, while increasing adoption of custom silicon and alternative architectures, including Arm-based CPUs, is reshaping the competitive landscape.

At the same time, supply-chain dynamics and component pricing are influencing system deployment timing and costs, as hyperscale cloud providers drive demand through large-scale deployments and custom designs.

Dell’Oro Group projects cumulative revenue for key server and storage components to exceed $1.8 trillion in 2030, underscoring the strategic importance of this market.

With this report, you will be able to answer critical business questions, including:

  • How fast will data center semiconductor and component revenue grow, and which products will drive growth?
  • How is AI reshaping demand for accelerators, CPUs, memory, storage, and network adapters?
  • How do component demand trends differ across cloud, AI-specialized, telco, and enterprise segments?
  • How will technology transitions and merchant versus custom solutions reshape the component mix?
  • How do supply, demand, inventory, and pricing trends affect the component market?
  • How will rising component power consumption affect future data center infrastructure requirements?

The report examines key developments across the semiconductor ecosystem:

  • The expansion of the AI accelerator market, led by NVIDIA alongside intensifying competition from emerging merchant vendors and custom silicon designs.
  • Shifting CPU market dynamics, including the competition between Intel, AMD, and ARM-based alternatives, and the new demand for CPUs to manage agentic AI workloads.
  • The accelerated adoption of bespoke, in-house silicon and custom XPUs by hyperscale cloud providers to optimize specific workloads.
  • The transformative impact of AI scaling on the demand, performance requirements, and pricing of the memory and storage markets.

Data Center IT Semiconductors & Components Quarterly Reports

Dell’Oro Group’s Data Center IT Semiconductor and Component quarterly report tracks revenue, unit and capacity shipments and unit and capacity pricing, along with market share of major semiconductor and component manufacturers that supply into the data center server and storage system markets starting from 2018.

Technology Coverage

    • Accelerators (GPUs, XPUs, FPGAs)
    • Central Processing Units (CPUs)
    • Memory (DRAM, HBM)
    • Ethernet and InfiniBand NICs (ARM, ASIC, FPGAs)
    • Hard Disk Drives (HDDs)
    • Solid State Drives (SSDs) and NAND

Demand Analysis

Dell’Oro Group tracks component demand across key customer segments and major hyperscale cloud providers:

      • Top 4 US Cloud: Amazon, Google, Meta, Microsoft
      • Top 3 China Cloud: Alibaba, ByteDance, Tencent
      • Other Major Cloud: Apple, Oracle
      • AI Model Builders
      • Neocloud
      • Rest-of-Cloud
      • Colocation
      • Telco
      • Enterprise

Data Center IT Semiconductors & Components 5-Year Forecasts

In January and July, Dell’Oro Group publishes five-year forecast reports offering a complete market overview, with historical data from 2018 to the present.

The forecasts provide a comprehensive analysis of market and technology trends across the technologies and customer segments outlined above. They include Dell’Oro Group’s long-term forecasts for key metrics such as:

  • Revenue
  • Unit shipments
  • Capacity shipments
  • Price per unit or capacity

The forecasts also provide Dell’Oro Group’s assessment of emerging technologies that could disrupt server and storage system architectures and the broader ecosystem.

Click here to contact us to learn more about the Data Center IT Semiconductors and Components research program and available purchasing options.