White Box Server Market: Hyperscale Adoption, Cost-Efficient Infrastructure & Open Architecture Trends

According to IMARC Group's latest research publication, global white box server market size reached USD 17.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 67.7 Billion by 2033, exhibiting a growth rate (CAGR) of 15.43% during 2025-2033.

How AI is Reshaping the Future of White Box Server Market

• Predictive Workload Management and Resource Optimization: AI-powered systems analyze usage patterns and computational demands to optimize server resource allocation dynamically. These intelligent platforms predict peak loads, automatically adjusting processing power and memory distribution to prevent bottlenecks while reducing energy waste by approximately 25-30%.
• Automated Hardware Configuration and Deployment: Machine learning algorithms streamline server deployment by analyzing workload requirements and automatically recommending optimal hardware configurations. AI-driven provisioning systems reduce deployment time from days to hours, while intelligent monitoring detects component failures before they occur, minimizing downtime and maintenance costs.
• Enhanced Security and Threat Detection: AI-powered security frameworks continuously monitor server networks for unusual activity, identifying potential cybersecurity threats in real-time. Advanced machine learning models detect anomalies and zero-day vulnerabilities with exceptional accuracy, automatically implementing protective measures to safeguard critical data infrastructure against evolving cyber threats.
• Intelligent Cooling and Energy Management: AI systems monitor thermal sensors and power consumption data across data centers to optimize cooling efficiency. Smart algorithms adjust temperature controls and ventilation based on real-time workload demands, achieving energy savings of 18-32% while maintaining optimal operating temperatures for high-performance computing clusters.

Performance Optimization for AI Workloads: AI analyzes computational patterns to fine-tune server configurations specifically for machine learning and deep learning applications. Intelligent systems automatically adjust GPU allocation, memory bandwidth, and network connectivity to maximize training speeds and inference performance, enabling faster deployment of AI-powered business solutions.

Request a Preview Report with the Most Recent Industry Data

White Box Server Industry Overview:

• Hyperscale cloud providers are fundamentally transforming the white box server landscape through massive infrastructure investments and strategic partnerships with Original Design Manufacturers. In February 2025, Google announced USD 75 billion in capital expenditure to expand its AI and cloud capacity, primarily focusing on upgrading data centers and cloud servers to address growing computational demands. North America dominates the market with major hyperscale data centers operated by Google, Microsoft Azure, and Amazon Web Services driving customization requirements. The Open Compute Project has accelerated adoption of standardized, modular server designs that reduce costs by 30-40% compared to traditional branded alternatives, while enabling unprecedented flexibility for cloud-scale deployments requiring millions of servers optimized for specific workloads.
• White Box Server Market Trends & Drivers
• The explosive growth of AI and high-performance computing applications represents the primary catalyst driving white box server adoption across enterprise and hyperscale environments. Major technology companies are deploying AI-optimized infrastructure at unprecedented scale, with MiTAC unveiling the G4527G6 AI server in March 2025, supporting eight NVIDIA GPUs and 8TB of DDR5-6400 memory specifically designed for enterprise AI workloads. In October 2024, Supermicro introduced Liquid-Cooled SuperClusters based on the NVIDIA GB200 NVL72 platform, featuring 72 NVIDIA Blackwell GPUs per rack for exascale AI processing. Reliance Industries announced plans in January 2025 to build India's largest data center in Jamnagar, Gujarat, following partnership discussions with NVIDIA at the October 2024 AI Summit. These facilities require customized server configurations that white box manufacturers can deliver more cost-effectively than traditional vendors. Over 56% of internet data centers now utilize white box servers for AI workloads, distributed computing, and scalable storage, with adoption growing 22% since 2022 as organizations prioritize lower capital expenditure.
• The rapid expansion of 5G networks and edge computing infrastructure is creating substantial demand for specialized white box servers optimized for telecommunications and distributed processing. According to GSMA projections, 5G connections will account for 51% of all mobile connections by 2029, reaching 5.5 billion connections by 2030 after surpassing 1.6 billion by end of 2023. In February 2024, Supermicro unveiled advanced servers tailored for 5G, telecommunications, and Edge AI markets, featuring 5th Gen Intel Xeon processors, AMD EPYC 8004 Series processors, and NVIDIA Grace Hopper Superchip with enhanced performance per watt for public and private 5G infrastructures. Approximately 41% of global telecom base stations now integrate white box hardware for virtual network functions and data routing, with demand increasing 28% over the past two years. Telecommunications operators are prioritizing network scalability and cost optimization through Open RAN and multi-access edge computing deployments, where customizable white box servers deliver superior flexibility compared to proprietary telecommunications equipment while reducing total cost of ownership.
• Hyper-converged infrastructure adoption and enterprise digital transformation initiatives are expanding white box server applications beyond hyperscale data centers into mainstream enterprise IT environments. HCI consolidates computing, storage, and networking into unified systems that simplify data center management while reducing costs, with white box servers proving ideal for software-defined infrastructure deployments. The market is experiencing technological innovation across processor architectures, with Jabil launching the J421E-S and J422-S servers in October 2024 powered by AMD 5th Generation EPYC and Intel Xeon 6 processors, optimized for AI, fintech, networking, storage, databases, and security applications in cloud environments. Growing cybersecurity concerns are driving organizations toward white box solutions, with a 125% increase in global cyberattacks creating demand for customized security configurations. Small and medium enterprises are increasingly adopting white box servers for their exceptional cost-efficiency and customization capabilities, particularly as cloud computing and virtualization become standard IT practices. Open-source software ecosystems including Linux operating systems, OpenBMC firmware, and Red Hat virtualization platforms enable organizations to build highly customized infrastructures that deliver better price-performance ratios than branded alternatives.

Leading Companies Operating in the Global White Box Server Industry:

• Celestica Inc.
• Compal Inc.
• Hon Hai Precision Industry Company Ltd.
• Hyve Solutions Corporations
• Inventec Corporation
• MiTAC Holdings Corporation
• Pegatron Corporation
• Penguin Computing
• Quanta Computer Incorporated
• Equus Computer Systems
• Super Micro Computer, Inc.
• Wistron Corporation
• ZT Systems

White Box Server Market Report Segmentation:

By Form Factor:

• Rack & Tower Servers
• Blade Servers
• Density-Optimized Servers

Rack & tower servers represent the largest segment, dominating with 46-49% market share due to their exceptional scalability, cost-efficiency, and suitability for data centers and cloud computing infrastructure.

By Business Type:

• Data Centers
• Enterprises

Based on the business type, the market has been segmented into data centers and enterprises, with data centers currently exhibiting clear dominance due to massive deployments by hyperscale operators.

By Processor Type:

• X86 Server
• Non-X86 Server

X86 servers account for the largest market share owing to widespread compatibility with enterprise software, extensive ecosystem support, and proven reliability for diverse workloads.

By Operating System:

• Linux Operating System
• Windows Operating System
• UNIX Operating System
• Others

Linux operating system holds the largest market share, driven by open-source nature, cost efficiency, strong community support, superior stability, and compatibility with white box server architectures.

By Component:

• Motherboard
• Processor
• Memory
• Hard Drive
• Server Case/Chassis
• Network Adapter
• Others

The motherboard segment accounts for the largest share due to its central role in integrating and managing all server components, while the processor segment is experiencing the fastest growth driven by increasing demand for high-performance computing and AI applications.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America exhibits clear dominance in the white box server market with 40% market share, driven by robust technological infrastructure and the presence of significant hyperscale data centers including Google, Microsoft Azure, and Amazon Web Services.

Recent News and Developments in White Box Server Market

• March 2025: MiTAC showcased its G4527G6 AI server at GTC, optimized for NVIDIA MGX architecture with support for eight NVIDIA GPUs, 8TB of DDR5-6400 memory, and advanced interconnects including NVIDIA NVLink and BlueField-3 DPU. This server addresses evolving enterprise AI workload demands with exceptional scalability and performance for complex AI and high-performance computing applications.
• March 2025: Supermicro commenced volume shipments of max-performance servers optimized for AI, HPC, virtualization, and edge workloads. These servers deliver superior performance and efficiency, addressing the growing computational demands of artificial intelligence and high-performance computing applications across diverse industries.
• February 2025: Google announced USD 75 billion investment to expand its AI and cloud capacity. The company will allocate most capital expenditures toward alleviating capacity constraints by upgrading infrastructure, including cloud servers and data centers, to support growing demand for AI-powered services.
• January 2025: Reliance Industries announced plans to build India's largest data center in Jamnagar, Gujarat, representing a crucial milestone in the company's artificial intelligence sector expansion. The project follows partnership discussions with NVIDIA at the October 2024 AI Summit for AI infrastructure development in India.
• October 2024: Supermicro introduced Liquid-Cooled SuperClusters designed specifically for AI data centers, powered by the NVIDIA GB200 NVL72 platform. Each rack supports 72 NVIDIA Blackwell GPUs and 32 NVIDIA Grace CPUs, enabling exascale AI processing with advanced liquid cooling technologies addressing growing power requirements of AI systems.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.