x86 vs ARM CPUs and the Shift Toward Heterogeneous Computing in 2025

Data centers are undergoing a significant infrastructure transition. Driven by the rapid expansion of cloud computing, artificial intelligence (AI), and data-intensive enterprise workloads, organizations are rethinking how they design and source compute platforms.

While GPUs, DPUs, and AI accelerators receive much of the attention, CPUs remain the foundation of data center infrastructure. In 2025, the critical question is which CPU architectures are best suited for modern data centers, and how those CPUs can be sourced reliably over long system lifecycles.

Learn More: What is a CPU?

This has brought renewed focus to the comparison between x86 and ARM CPUs, as well as the growing adoption of heterogeneous computing architectures.

The Data Center CPU Market in 2025

The global data center CPU market continues to experience steady growth, fueled by hyperscale cloud expansion, enterprise digital transformation, and rising compute density requirements. The market is estimated at approximately $35 billion in 2025, with long-term growth expected through the next decade.

Despite innovation, the market remains highly concentrated. Intel, AMD, and Nvidia account for more than 70% of data center CPU shipments, supported by large-scale manufacturing, R&D investment, and established software ecosystems.

At the same time, data center operators face increasing complexity:

·      Higher core counts and memory bandwidth demands

·      Power and cooling constraints

·      Security and compliance requirements

·      Supply chain volatility

These factors are shaping how organizations evaluate CPU architecture, not just on performance, but on availability, lifecycle support, and total cost of ownership.

x86 CPUs: The Backbone of Enterprise Data Centers

Despite increased competition, x86 CPUs remain the dominant architecture in enterprise and hyperscale data centers.

Why x86 Still Dominates Data Center Infrastructure

x86 platforms continue to lead due to:

·      Broad software compatibility

·      Mature virtualization ecosystems

·      Long-term vendor support

·      Proven reliability for mission-critical workloads

In 2025, Intel’s Xeon 6 processors highlight how x86 continues to evolve. Improvements in performance per watt, higher core densities, and enhanced AI-related instruction sets allow x86 CPUs to remain competitive in modern data center environments.

For enterprises running internal data storage systems, databases, and virtualized workloads, x86 offers predictability and stability, a key advantage for infrastructure expected to remain in service for many years.

ARM CPUs in Data Centers: Growing Adoption Through Efficiency

While x86 remains dominant, ARM-based CPUs are gaining traction in data centers, particularly in hyperscale and cloud-native environments.

What’s Driving ARM CPU Adoption

ARM CPUs are increasingly attractive due to:

·      Superior performance per watt

·      Lower power consumption and cooling requirements

·      Alignment with sustainability and carbon-reduction goals

·      Scalability for distributed workloads

ARM architectures also support custom silicon strategies, allowing cloud providers to optimize CPUs for specific applications. Although ARM adoption in traditional enterprise data centers is still emerging, its presence continues to expand as efficiency becomes a primary design constraint.

Heterogeneous Computing: CPUs Working With Accelerators

Modern data centers are no longer built around CPUs alone. Heterogeneous computing architectures (combining CPUs with GPUs, FPGAs, DPUs, and specialized accelerators) are now standard for high-performance workloads.

This approach enables:

·      Optimized performance for AI and machine learning

·      Improved data throughput

·      Better energy efficiency

Advances in chiplet design, high-speed interconnects, and liquid cooling are enabling higher compute density while maintaining system reliability.

CPU Sourcing Becomes a Strategic Concern

Beyond architecture, CPU availability and sourcing strategy have become critical considerations in 2025.

As hyperscalers refresh infrastructure to support AI-optimized platforms, millions of enterprise-grade x86 CPUs are entering the secondary market annually. This shift is driven by:

·      Extended server lifecycles (now averaging 5-6 years)

·      Sustainability mandates encouraging reuse

·      Large-scale AI infrastructure upgrades displacing functional x86 systems

The result is a rapidly growing secondary server component market valued at $15–25 billion, expanding at 7–10% annually through 2032.

Why Cascade Lake and Ice Lake Xeons Dominate Secondary Demand

Not all data center CPUs are equally impacted by refresh cycles. Current demand is strongest for platforms that balance performance, compatibility, and memory availability.

High-Demand Data Center CPU Platforms

Intel Cascade Lake (2nd Gen Xeon Scalable): Widely available due to OEM support sunsets and large installed bases

Intel Ice Lake (3rd Gen Xeon Scalable): Highly sought after as the last mainstream Intel platform with full DDR4 support

As DRAM manufacturers phase out DDR4 in favor of DDR5 and HBM, DDR4-compatible CPUs have become strategically important for enterprises extending existing infrastructure.

Learn More: The Global Memory Chip Shortage – DRAM, DDR4, NAND Flash and HBM

AMD EPYC processors, especially EPYC Milan (7003 series) are also seeing increased demand as AMD’s x86 server market share continues to rise.

Learn More: AMD EPYC Processors

The Importance of Trusted CPU Suppliers

As the CPU market becomes more fragmented, procurement risk has increased. Enterprises must account for:

·      Counterfeit CPU risk

·      Inconsistent grading and testing standards

·      Warranty variability

·      Export and regulatory compliance

·      Long-term availability across refresh cycles

This makes trusted CPU suppliers a critical part of modern data center strategy.

How Microchip USA Supports Modern Data Center CPU Sourcing

Microchip USA is uniquely positioned to support you in navigating today’s evolving CPU market.

Microchip USA specializes in:

·      Supplying enterprise-grade x86 CPUs aligned with existing infrastructure

·      Supporting extended lifecycles 

·      Mitigating risk with authentication, testing, and traceability

·      Addressing DDR4 shortages by supplying compatible CPU and memory platforms

Microchip USA secures and supplies reliable CPUs for internal data storage systems, enterprise servers, and long-lifecycle applications at competitive prices. 

Choosing the Right CPU Strategy for the Future

The future of data center CPUs is not defined by a single architecture. It reflects a coexistence of x86, ARM, and heterogeneous platforms, shaped by performance needs, sustainability goals, and supply chain realities.

For enterprises building and maintaining internal data systems, success depends on:

·      Selecting the right CPU architecture

·      Planning for long-term availability

·      Partnering with suppliers who understand both technology and market dynamics

In an environment where availability, validation, and lifecycle support are as important as architecture, Microchip USA serves as a trusted CPU sourcing partner. Contact us today!