Taiwan's Foxconn is set to become the world's largest server supplier by 2024, according to new analysis from Omdia.

In a report, Omdia noted that Foxconn's ODM direct business will see "astronomical" growth in 2024, driven by soaring demand for AI-optimized servers from major U.S.-based cloud providers, taking the top spot in its analysis of the global server market.

As a result, Foxconn will overtake Dell, marking the first time a non-US company has topped the server market rankings. Dell took the top spot from HP in 2018.

Vlad Galabov, senior director at Omdia, said the four major cloud providers - Microsoft, Amazon, Google and Meta - will account for nearly half of data center capital expenditures in 2024, which will expand their presence in the highly competitive server market.

Providers aligned with Nvidia are booming as the development and deployment of artificial intelligence applications becomes a computing priority. These factors propelled Foxconn to the top of the list.

Omdia notes that Foxconn isn't the only vendor benefiting from the surge in demand for AI-optimized servers.

In particular, Quanta Cloud Technologies (QCT), ZT Systems, and Super Micro saw server revenue growth of more than 100% in 2024. Meanwhile, Dell has won large, strategic customers such as CoreWeave and xAI.

Omdia also expects the server market to reach $380 billion by 2028 and close to $500 billion by 2030.