Dell Takes Lead in On-Premises HPC Servers

Hyperion Research reports the on-premises HPC and AI-for-Science server market grew nearly 20% year over year, with Dell overtaking HPE as share leader.

Updated on Nov. 3, 2026 in Data Centers

Isometric editorial illustration of rows of graphite server cabinets in a data hall, one cabinet open to show stacked compute modules. — Dell overtook HPE as the leading supplier of on-premises high-performance computing servers, as the segment grew nearly 20% year over year, Hyperion Research reported. AI Illustration. Upload story photo >

Hyperion Research reported that on-premises HPC and AI-for-Science server revenue grew close to 20% year over year. Dell became the market share leader, surpassing HPE, which had held the top position for more than 25 years.

Why it matters

The shift reflects organizations replacing aging machines and integrating AI into scientific and engineering workflows. Large procurements and mid-range AI-focused systems drove Dell's gains.

Total on-premises HPC and AI-for-Science server revenue reached $16.5 billion in 1H26, up from $13.8 billion in 2H25, while unit sales grew 4.4%. Dell's server revenue totaled $4.2 billion in the first half of 2026, but the source does not break out the hardware specifications of the systems sold.

The players

Hyperion Research

Hyperion Research is an advanced computing analysis firm with 39 years of experience tracking the high-performance computing market through buyer and supplier surveys.

Dell Technologies

Dell Technologies is a major American computer hardware company that became the market share leader in on-premises HPC and AI-for-Science servers in 2026.

Hewlett Packard Enterprise

Hewlett Packard Enterprise is a multinational information technology company that had led the on-premises HPC server market for more than 25 years before being surpassed by Dell.

The details

Dell's growth reflects several large procurements, while HPE had recognized significant revenue in 2025 from sales of multiple exascale-class leadership machines. Customers are increasingly buying mid-range AI-focused machines to integrate AI with scientific and engineering workflows.

2025: HPE recognized significant revenue from exascale-class machine sales.
Second half of 2025: On-premises HPC and AI-for-Science server revenues reached $13.8 billion.
First half of 2026: Dell server revenues reached $4.2 billion, making it the market leader.

The Tech Race

Hewlett Packard Enterprise had held the on-premises HPC server lead for more than 25 years, a position Hyperion Research's market tracking documents until Dell's 2026 gains. The change signals a shift in the competitive race toward mid-range AI-focused systems for scientific and engineering workflows.

Organizations buying on-premises HPC and AI systems are choosing from a broader set of vendors as the market shifts toward mid-range AI-focused machines. Researchers and engineers integrating AI into their workflows may see new options for system procurement.

The takeaway

The market is moving toward mid-range AI-focused systems that integrate with existing scientific and engineering work. Organizations evaluating infrastructure should weigh vendor options against their specific AI integration needs.