Data Center Accelerators Market to Reach $446 Billion by 2029, HBM to Exceed $130 Billion

The global data center accelerator market is projected to reach $446 billion by 2029, driven by the growth of AI workloads and the expansion of specialized infrastructure. Custom accelerators will account for half of all shipments, while merchant GPU revenues will continue to dominate. The HBM market is forecast to exceed $130 billion by 2029, and the Ethernet network adapter market for supporting back-end networks in AI compute clusters is projected to grow at a 59% CAGR by 2029.

The global data center solutions market is poised for significant growth, driven by the increasing demand for AI workloads and the expansion of specialized infrastructure. According to MarketsandMarkets™, the market is expected to reach USD 1,105.28 billion by 2030, growing at a CAGR of 19.7% from 2025 to 2030 [1].

One of the key drivers of this growth is the adoption of liquid cooling technologies. Liquid cooling is expected to account for the fastest growth rate during the forecast period, underscoring its critical importance as compute densities and thermal loads surge. Vendors and solution providers are transitioning from traditional air-based systems to advanced liquid cooling technologies, such as rear door heat exchangers, direct-to-chip cold plates, and immersion cooling tanks [1].

The software component segment is also poised for significant growth. As data center operators prioritize intelligent, scalable, and automated management of increasingly complex environments, the software segment is expected to reveal the fastest growth rate during the forecast period. This growth is driven by the demand for data center infrastructure management platforms, facility and building management systems, virtualization and orchestration tools, compliance and security software, and analytics and AIOps solutions [1].

North America is expected to account for the largest market share during the forecast period, driven by a robust demand for AI, cloud services, and high-performance computing. The region benefits from mature digital ecosystems, extensive land availability, favorable regulatory environments, and strong coordination between public and private sectors [1].

State governments will need to balance a complex range of costs and a full view of the benefits as they weigh their strategies in data center development. Data centers represent the foundational infrastructure that fuels the many digital services that individuals, businesses, and governments rely on every day. This backbone of the digital economy is poised for significant growth as the demand for cloud computing and AI accelerates [2].

The global data center accelerator market is projected to reach $446 billion by 2029, driven by the growth of AI workloads and the expansion of specialized infrastructure. Custom accelerators will account for half of all shipments, while merchant GPU revenues will continue to dominate. The HBM market is forecast to exceed $130 billion by 2029, and the Ethernet network adapter market for supporting back-end networks in AI compute clusters is projected to grow at a 59% CAGR by 2029 [3].

References:
[1] https://www.prnewswire.com/news-releases/data-center-solutions-market-worth-1-105-28-billion-by-2030--marketsandmarkets-302527365.html
[2] https://www.mckinsey.com/industries/public-sector/our-insights/the-data-center-balance-how-us-states-can-navigate-the-opportunities-and-challenges
[3] [Provided Writing Topic]