The server market hit a record in the third quarter of 2025 with revenues of $ 112.4 billion, according to IDC. That’s a whopping 61 percent increase compared to the same period in 2024.

Sales of x86 servers grew 32.8 percent to $76.3 billion, while sales of non-x86 servers rose 192.7 percent to $36.2 billion. Servers with embedded GPUs grew 49.4% and accounted for more than half of the market’s total revenue.

The US was the fastest growing region with a 79.1% increase, followed by Canada at 69.8% and China at 37.6%. Asia-Pacific grew by 37.4%, Europe, Middle East and Africa by 31% and Japan by 28.1%. Latin America increased by 4.1%.

The increase is traced to massive AI investments by hyperscalers and cloud providers. According to IDC, the strong growth is likely to continue as AI adoption and new large-scale data center projects increase.