Data Center Accelerator Market Size

Data Center Accelerator Market Size

Data Center Accelerator Market size was valued at USD 8.1 billion in 2023 and is predicted to register at a CAGR of over 25% between 2024 and 2032. Rapid technological advancements in AI including deep learning and Machine Learning (ML) are driving the expansion of the market. The growing demand for accelerated computing power to handle complex AI workloads propels the development of specialized accelerators, enhancing processing capabilities. For instance, in December 2023, AMD unveiled its Instinct MI200 GPU, a high-performance AI accelerator designed to rival Nvidia's offerings. It features AMD's CDNA 2 architectures, offering advanced computing capabilities for AI workloads.

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The increasing investments in the IT & telecom sector across Latin America and the Middle East & Africa (MEA) are propelling the data center accelerator market. The growing demand for high-performance computing and data processing capabilities fuels the adoption of accelerators, supporting the development of advanced data center infrastructure to meet the evolving needs of these regions. According to the International Trade Administration, the Brazilian Information Technology (IT) market was valued at USD 45.2 billion in 2022. Brazil ranks 12th in the global IT market and represents 36.5% of the Latin America market.

Data center accelerators require specialized infrastructure to accommodate high-performance computing needs. Building and maintaining such infrastructure involve substantial costs and expertise. Meeting the demand for specialized equipment, cooling systems, and power solutions poses a challenge, necessitating significant investments from organizations to deploy and manage the necessary resources. This is impacting the scalability and accessibility of advanced data center accelerators in the market.