Global server shipments are projected to grow at a compound annual growth rate (CAGR) of 4% from 2024 to 2029. However, in 2025, the recovery momentum for servers is expected to be suppressed due to an unstable macroeconomic environment, the new tariff policies implemented during Trump's administration, and ongoing US-China geopolitical competition. This will result in a low shipment growth rate of just 3.9% for the year, according to DIGITIMES.
By 2026, large cloud providers, having invested heavily in high-end AI servers for three consecutive years, are anticipated to slow their equipment updates. This shift will redirect some focus to general-purpose servers, reducing the global server shipment growth rate to 2.2%.
In 2027, with market and supply chain adjustments to geopolitical changes completed and significant hardware updates across various server technologies, server shipments are expected to grow by 7%. However, growth rates for server shipments are likely to decelerate again in 2028 and 2029.
