The global data center chip market is entering a new phase of growth, with DC Market Insights reporting that overall market value reached US$314.87 billion in 2025 and is projected to exceed US$1 trillion by 2035. The research firm notes that North America currently leads this global segment, which is expected to expand at a compound annual growth rate of 12.49% through the forecast period.
According to the report, AI accelerators have become the largest source of chip value inside data centers, overtaking other major categories. At the same time, custom silicon, high-bandwidth memory and AI-focused networking components are reshaping how semiconductor content is distributed at both the server and rack level.
Spending on accelerators alone was approximately US$169.77 billion in 2025, representing 53.9% of the entire data center chip market that year. This underscores the speed at which accelerator technologies are being adopted to support compute-intensive workloads inside modern facilities.
DC Market Insights also highlights the growing role of custom in-house silicon within data centers. The report projects that custom silicon developed by hyperscale operators will increase from 16.6% of total market value in 2025 to 29.7% by 2035, as more operators design workload-specific chips tailored to their own environments.
Report author Amit Jain, senior consultant for ICT and emerging technologies at DC Market Insights, states that the data center semiconductor sector has “crossed a structural threshold,” with accelerators now carrying more value than CPUs, memory or networking on a standalone basis. He adds that over the coming decade, the most significant transition will be the combination of rising custom silicon and system-level co-design, where compute, memory and networking chips are selected in tandem.
This co-design approach, Jain notes, is being organized around two primary considerations: the economics of each workload and the amount of power that is available to the data center to support it.
