White Box Server Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global White Box Server Market is projected to expand from USD 16.08 Billion in 2025 to USD 40.22 Billion by 2031, reflecting a compound annual growth rate of 16.51%. White box servers are defined as unbranded computing systems constructed by original design manufacturers utilizing commercial off-the-shelf components to address the distinct requirements of massive data centers. The market is primarily propelled by significant cost advantages resulting from minimized hardware redundancy and a high level of flexibility, which permits hyperscale operators to configure infrastructure precisely for specific workloads. These attributes facilitate substantial reductions in capital expenditures when compared to the proprietary, preconfigured solutions provided by established brands.

A major obstacle hindering broader market acceptance is the absence of standardized post-sales support and maintenance frameworks, a deficiency that frequently demands extensive internal technical expertise from the purchaser. This constraint complicates deployment for organizations lacking specialized IT teams capable of managing component failures independently. According to the Taiwan Electrical and Electronic Manufacturers’ Association, Taiwanese original design manufacturers were responsible for over 80 percent of total global server system production in 2024. While this statistic underscores the sector's massive production capacity, it also highlights the service-related barriers that continue to impede growth within the wider enterprise segment.

Market Drivers

The escalating demand for high-performance AI and machine learning workloads serves as a major driver for the white box server industry, requiring hardware configurations that traditional OEM models frequently fail to supply with sufficient speed. Enterprises and hyperscale operators increasingly demand bespoke server architectures optimized for high GPU density and advanced cooling systems to manage intensive computational processes.

This necessity for customization directs buyers toward Original Design Manufacturers (ODMs), who provide superior scalability and faster prototyping capabilities. According to CNBC's coverage of the 'Foxconn Q2 Earnings Report' in August 2024, AI servers comprised over 40 percent of the company's total server revenue, highlighting the essential role of intelligent computing in driving current manufacturing volumes. This trend signifies a clear transition from standardized off-the-shelf units to application-specific infrastructure engineered for maximum processing efficiency.

Concurrently, the rapid growth of hyperscale cloud computing facilities continues to stimulate the uptake of unbranded server hardware. Leading cloud service providers are increasingly circumventing traditional server brands to work directly with ODMs, a strategy designed to lower capital expenditures while ensuring rigorous control over their data center supply chains. This direct sourcing approach facilitates the adoption of open standards and streamlines maintenance protocols across extensive server farms.

According to Meta Platforms Inc.'s 'Third Quarter 2024 Results' released in October 2024, the company revised its 2024 capital expenditure forecast to a range of $38 billion to $40 billion, indicating massive investment in servers and data center infrastructure. The magnitude of this spending emphasizes the reliance on cost-effective white box solutions to support expansion. Furthermore, the Ministry of Economic Affairs, R.O.C., reported in 2024 that export orders for information and communication products, primarily fueled by AI and cloud servers, increased by 11 percent year-on-year in July.

Market Challenges

The lack of standardized post-sales support and maintenance ecosystems presents a significant hurdle for the entry of the broader enterprise sector into the white box server market. In contrast to hyperscale operators, who maintain capable internal engineering teams to diagnose and rectify hardware issues, traditional enterprises depend heavily on comprehensive service-level agreements and on-site vendor support to guarantee operational continuity. White box servers generally forego these extensive service networks to preserve their low-cost business models. As a result, organizations lacking specialized technical personnel view the operational risks associated with downtime and unmanaged component failures as excessive, effectively negating the initial capital expenditure savings provided by these unbranded systems.

This gap in service capabilities fundamentally tilts market growth in favor of self-sufficient technology giants rather than general business consumers. This limitation is reflected in market consumption patterns, where adoption is heavily concentrated among entities possessing the resources to manage the lifecycles of their own infrastructure. According to the Open Compute Project Foundation, global spending on OCP-recognized IT infrastructure hit $132 billion in 2025. This significant figure indicates a market dominated by major data center operators who can effectively manage these maintenance challenges, leaving the vast potential of the mainstream enterprise market largely unexploited due to the difficulty in obtaining reliable external technical support.

Market Trends

The rising deployment of ARM-based processors marks a transformative evolution in server architecture, propelled by requirements for higher core density and energy efficiency within cloud environments. Unlike conventional x86 silicon, ARM designs enable original design manufacturers and hyperscale operators to tailor processor pipelines for distinct cloud-native workloads, thereby substantially lowering the total cost of ownership. This architectural approach is gaining momentum as data centers prioritize performance-per-watt metrics to address the growing power limitations of modern infrastructure. According to a Reuters article from July 2025 titled 'Exclusive: Arm expects its share of data center CPU market sales to rocket to 50% this year,' the CEO of Arm Holdings predicted that the company’s share of the global data center CPU market would increase to 50 percent by the end of 2025, driven largely by broad adoption in cloud and AI facilities.

Simultaneously, the market is experiencing significant integration into 5G telecommunications networks, specifically through the implementation of AI-enabled Radio Access Network (AI-RAN) technologies. Telecommunications operators are transitioning from proprietary fixed-function hardware to software-defined, server-based architectures capable of managing both 5G connectivity and intensive computational tasks concurrently. This convergence requires robust white box servers that can support virtualized network functions alongside artificial intelligence workloads at the network edge. As reported by TelecomLead in October 2025 regarding the 'NVIDIA to Invest $1 bn in Nokia to Drive AI-RAN and Data Center Networking Partnership,' NVIDIA announced a strategic investment of $1 billion in Nokia to expedite the development and deployment of these next-generation AI-RAN systems, highlighting the essential role of accelerated computing in contemporary telecommunications.

Key Players Profiled in the White Box Server Market

• Quanta Computer Inc.
• Celestica Inc.
• MiTAC Holdings Corp.
• Super Micro Computer Inc.
• Hon Hai Precision Industry Company Ltd.
• SMART Global Holdings, Inc.
• Compal Electronics Inc.
• Wistron Corporation
• Wiwynn Corporation
• SDxCentral, LLC

Report Scope

In this report, the Global White Box Server Market has been segmented into the following categories:

White Box Server Market, by Server Type:

• Rack & Tower
• Blade
• Density Optimized

White Box Server Market, by Business Type:

• Datacenters
• Enterprise

White Box Server Market, by Processor:

• x86 servers
• Non-x86 Servers

White Box Server Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global White Box Server Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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