Hyperscalers fuel $112B server spending spree in Q3

The global server market went into overdrive in the third quarter of 2025, racking up a record $112.4 billion in revenue as AI demand pushed vendor sales up 61 percent year-on-year, according to the latest figures from IDC.

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 ...