Generative AI server market seen reaching $1.93 trillion by 2035, SNS says

The global generative AI server market is projected to rise from USD 102.50 billion in 2025 to USD 1,932.88 billion by 2035, expanding at a CAGR of 34.17% during 2026–2035, according to SNS Insider. Growth is tied to rising investment in AI infrastructure by enterprises, hyperscale cloud providers, research institutions and governments, as demand builds for systems capable of training and running large language models, machine learning workloads, autonomous systems and other advanced AI applications. SNS said the market is being shaped by wider use of GPU architecture, heterogeneous computing, faster networking and AI accelerators, which are increasing computing performance for data-intensive workloads. The report frames generative AI servers as a core layer of next-generation digital infrastructure as organizations build out AI factories, cloud AI platforms, high-performance computing environments and enterprise AI deployments. By server type, AI training servers accounted for 38.60% of 2025 revenue, while hybrid AI servers are forecast to grow the fastest at a 36.52% CAGR. GPU-based servers led processor types with a 68.40% share, and heterogeneous computing servers were the fastest-growing segment at a 39.55% CAGR. Cloud-based deployment held a 45.60% share and is also expected to post the fastest deployment growth at a 35.88% CAGR. Rack servers led form factors with a 46.80% share in 2025, while modular AI servers are projected to record the fastest growth at a 39.44% CAGR. Air cooling held a 62.40% market share, but direct liquid cooling is expected to expand the fastest at a 41.77% CAGR as high-density GPU clusters require more effective thermal management. Large language model training represented the biggest application segment at 42.60%, while generative design is projected to grow the fastest at a 37.22% CAGR. Cloud service providers made up 31.80% of end-user revenue, and healthcare and life sciences is expected to be the fastest-growing end-user segment at a 36.46% CAGR. Regionally, North America led with a 41.60% market share in 2025, and the U.S. accounted for 83.87% of the regional market. Asia-Pacific is forecast to post the fastest growth at a 37.51% CAGR through 2035, driven by digitization, hyperscale data center expansion, semiconductor investment, government AI projects and broader enterprise adoption across China, Japan, South Korea and India. Recent developments cited by SNS include DataVolt's strategic agreement with NEOM to develop a USD 5 billion net-zero AI factory campus in Oxagon and a Fujitsu-Supermicro-Nidec alliance aimed at lowering AI data center cooling energy consumption by up to 40%.