Intel is transforming its CPU manufacturing factories to shift towards data center processors to cope with the surge in AI demand

Intel will shift some of its production capacity from desktop processors to data center processors to meet AI demand, expanding production of Xeon chips at Ireland Fab 24, accelerating equipment installation at Arizona Fab 62, and committing to producing 18A chips. It is expected that the demand for data center CPUs will be strong in 2027-2028. Its DCAI business generated $7.3 billion in revenue in the third quarter of 2026, a month-on-month increase of 17% and a year-on-year increase of nearly 80%.