Global server market, 1Q 2025

According to DIGITIMES, global server shipments declined by 3.2% quarter-on-quarter in the first quarter of 2025, performing slightly better than expected. Meta increased shipments of general-purpose servers early in the quarter, driven by concerns that its contract manufacturing plants in Mexico might be subject to tariffs.

Google also actively initiated a platform upgrade for its general-purpose models. However, brand vendors underperformed overall, as enterprises grew more cautious in their procurement due to tariff uncertainties. In contrast, Chinese cloud service providers saw increased shipments, supported by economic recovery and the strong influence of the "DeepSeek" effect.

DIGITIMES expects global server shipments to grow by 1.8% sequentially in the second quarter of 2025. Although servers remain less affected than other products by President Trump's ongoing implementation of varied tariffs across countries and product categories, some vendors remain uncertain about potential tariff hikes and engage in early inventory stocking during the quarter.