Dell’Oro Group forecasts Data Center IT Semiconductors market to reach $1.8 trillion by 2030

Dell’Oro Group forecasts the worldwide Data Center IT Semiconductors and Components market will reach $1.8 trillion by 2030, revising the outlook higher from its January 2026 report on data center capex and power additions. The report links growth to AI workloads and spending across accelerators, memory, storage, CPUs, and NICs.

Market overview

Dell’Oro Group said the forecast points to “substantial growth,” with the market reaching $1.8 trillion by 2030. The firm said it revised the forecast significantly since January 2026 due to higher projections for data center capex and power capacity additions.

Key findings

Baron Fung, Vice President of Research at Dell’Oro Group, said “AI will remain the primary driver of data center infrastructure spending, with accelerators accounting for the largest share of the component market.” Fung also said memory, storage, CPUs, and NICs will scale alongside accelerators, while supply constraints are expected to sustain elevated pricing for memory and storage.

Fung said “inference, storage, and agentic AI are expected to increase demand for general-purpose servers,” supporting growth across broader component categories. The report also describes work to improve accelerator performance per watt and reduce cost per token by scaling architectures “from the package through the rack level.”

Data center power and components pricing

The report projects server and storage components will consume more than 200 GW of power over the next five years. It also said component prices, particularly for memory and storage, are expected to moderate over the forecast period.

Compute, networking, and shift toward custom silicon

Dell’Oro Group said AI accelerators, CPUs, and NICs will increasingly shift toward custom silicon as hyperscalers seek greater efficiency and lower costs. For networking, the report said NIC growth will accelerate as front-end demand increases from general-purpose servers for inference, agentic AI, and storage.

The report added that scale-out AI networking supports stronger back-end demand for NICs. It also cited development of “heterogeneous computing targeted at various workload domains” as a potential efficiency lever at data center scale.

Analyst outlook and forecast scope

The forecast is part of Dell’Oro Group’s Data Center IT Semiconductors and Components 5-Year July 2026 Forecast Report. The report includes tables for manufacturers’ revenue and unit shipments for accelerators, CPUs, memory, NICs, and storage drives such as HDDs and SSDs.

This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.