by Hyperscale data centers are extremely large data centers with over 500 operational servers and the capacity to provide thousands of computing resources and storage for enterprises, organisations, government agencies and academic institutions. Hyperscale data centers use server virtualization and automation techniques to improve hardware utilization and reduce overhead costs. They provide high availability and failover protection ensuring continuous operation even during outages or maintenance. Leading cloud service providers are extensively building hyperscale data centers to meet the increasing demand for hyperscale cloud computing and storage solutions. Hyperscale data centers offer the advantages of economies of scale as the infrastructure costs are distributed over a large amount of services and customers.
The global hyperscale data center market is estimated to be valued at US$ 87.87 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Surging Demand for Cloud-Based Services Is Expected to Drive the Growth of Hyperscale Data Center Market over the Forecast Period- The proliferation of cloud services such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) across various end-use industries is driving the need for hyperscale data centers. Leading cloud providers are investing heavily on data center infrastructure to scale cloud computing requirements. According to the CMI’s report, hyperscale data centers accounted for over 40% of total cloud infrastructure capacity by the end of 2021. Rising adoption of emerging technologies such as big data analytics, artificial intelligence, machine learning and internet of things (IoT) are also generating huge amounts of data which need to be processed, analyzed and stored on a massive scale, thus augmenting demand for hyperscale data centers.
Increasing Investment by Technology Giants to Build Hyperscale Data Centers Will Accelerate Market Growth- Hyperscale operators such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Alibaba Cloud, IBM Cloud, Oracle Cloud, and Salesforce are spearheading the construction of new hyperscale data centers worldwide. These companies are making multibillion-dollar investments to enhance infrastructure capacities. For instance, in 2020 alone, AWS planned to invest $18 billion in new data center projects globally. In 2021, Google announced plans to invest more than $9.5 billion in office buildings and data centers across the US. The continuous expansion plans by cloud giants are expected to significantly contribute to the growth of hyperscale data center
Segment Analysis
The global Hyperscale Data Center market is segmented into IT infrastructure, electrical construction, mechanical construction, general construction. The IT infrastructure segment currently dominates the market and accounts for around 45% share owing to increasing deployment of high-density servers, networking infrastructure along with storage infrastructure by hyperscale operators.
PEST Analysis
Political: Governments across regions are framing favorable regulations to attract hyperscale investments which is positively impacting the market growth. Economic: Growing demand for cloud computing, big data analytics along with low-cost operations are fueling hyperscale deployment across industries thereby driving the market. Social: Increasing digitization, internet penetration along with rising adoption of OTT platforms are augmenting the usage of hyperscale infrastructure. Technological: Advancements in cooling solutions, adoption of AI/ML, modular designs along with increasing focus towards sustainability are paving way for new opportunities.
Key Takeaways
The Global Hyperscale Data Center Market Size is expected to witness high growth over the forecast period.
Regionally, North America captures the major share primarily due to strong presence of technology giants such as Google, Amazon, Meta, Microsoft. The APAC region is poised to offer lucrative opportunities owing to increasing penetration of 5G, smart cities projects across China and India.
Key players operating in the Hyperscale Data Center market are Weather Modification International, North American Weather Consultants, Seeding Operations and Atmospheric Research (SOAR), National Center for Atmospheric Research (NCAR). Weather Modification International develops weather modification technology and provides weather mitigation services. It has over 60+ years of experience and operates in over 30 countries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
