Hyperscalers fuel $112B server spending spree in Q3

"The surge marks another quarter of unusually high, double-digit growth for a market that was once defined by cautious refresh cycles, with IDC pointing squarely at accelerated infrastructure as the main culprit. Revenue from x86 servers climbed 32.8 percent year-over-year to $76.3 billion, but it was non-x86 systems that stole the show, jumping a staggering 192.7 percent to $36.2 billion as hyperscalers and cloud providers piled into alternative architectures optimized for AI workloads."

"Servers with embedded GPUs now account for more than half of the server market's revenue, growing 49.4 percent year-on-year in the quarter. IDC said the pace of adoption among hyperscalers and cloud service providers has helped fuel a market that has nearly doubled in size compared with 2024, reaching $314.2 billion in revenue across the first three quarters of 2025 alone."

""IDC expects AI adoption to keep growing at an outstanding pace as major vendors continue reporting record orders and showing strong backlogs," said Juan Seminara, research director for IDC's Worldwide Enterprise Infrastructure Trackers. He added that hyperscalers remain out in front with large-scale deployments requiring much higher compute density, while major AI-focused research and education projects are beginning to add further momentum."

Global server revenue reached $112.4 billion in Q3 2025, a 61% year-on-year increase driven by AI demand and accelerated infrastructure spending. x86 server revenue rose 32.8% to $76.3 billion, while non‑x86 systems jumped 192.7% to $36.2 billion as hyperscalers and cloud providers adopted architectures optimized for AI workloads. Servers with embedded GPUs accounted for more than half of market revenue, growing 49.4% in the quarter. Revenue across the first three quarters of 2025 reached $314.2 billion, nearly double 2024 levels. Regional gains were led by the US, with broad double-digit growth worldwide.

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