ARM drives into the server market

Market news |
By Peter Clarke

After years of addressing the server market, ARM-based processors will run 22 percent of server computers by 2025, according to TrendForce.

This is driven by adoption in cloud data centres which require more performance within a given power envelope. ARM-based processors have advantages over the x86-based servers that are fundamentally configured for performance rather than energy efficiency.

ARM-based servers can support diverse and rapidly changing workloads and are more scalable and cost-effective and also provide higher customization for different niche markets with a more flexible ecosystem. The lower power consumption also means the physical footprint is relatively small which meets the needs of micro data centres.


The Graviton processor, developed by Amazon Web Services (AWS), has the largest market scale and began encroaching gradually into the market in 2021, TrendForce said.

AWS’s deployment of Arm-based processors in 2021 reached 15 percent of overall server deployment and will exceed 20 percent in 2022. This is forcing other major cloud service providers to initiate their own ARM-based projects at various foundries. These projects are expected to enter mass introduction in 2025.

Nonetheless x86 still dominates ultra-large-scale data centres and the large volumes of servers they control. For this reason TrendForce said it will be difficult for Arm-based servers to compete with x86-based servers before 2025.

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