Apple to Start Production of AI Server Chips in 2026, New Data Centers by 2027
Apple plans to begin mass production of proprietary AI server chips in the second half of 2026 and will construct new data centers dedicated to AI starting in 2027. This initiative is part of a $500 billion investment plan aimed at enhancing domestic production and creating approximately 20,000 jobs, while also addressing the anticipated growth in demand for on-device AI functionalities. The new AI chips are expected to improve performance and energy efficiency across Apple's services.
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Apple plans to begin mass production of proprietary AI chips for servers in the second half of 2026, according to analyst Ming-Chi Kuo. The company will also construct new data centers dedicated to AI starting in 2027.
This move aligns with Apple's $500 billion investment plan announced in February 2025, which aims to bolster domestic production and create approximately 20,000 jobs. Apple is expanding its data center capacity in states including North Carolina, Iowa, Oregon, Arizona, and Nevada.
The AI server chips are expected to enhance performance and energy efficiency. Apple is currently using in-house designed chips for its Private Cloud Compute servers and anticipates significant growth in demand for on-device AI functionalities from 2027 onward.
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