Hyperscale Data Center Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 299.57 Billion |
| Market Size (2029) | USD 916.5 Billion |
| CAGR (2024 - 2029) | 25.06 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Hyperscale Data Center Market Analysis
The Hyperscale Datacenter Market size is estimated at USD 299.57 billion in 2024, and is expected to reach USD 916.5 billion by 2029, at a CAGR of 25.06% during the forecast period (2024-2029).
Hyperscale data centers have become highly powerful in recent years due to the increased computing and storage requirements to serve high-end applications. Business-critical apps are increasing, resulting in greater data center complexity. With the rising popularity of the web, e-commerce, social media, big data, computing, online gaming hosting, and Hadoop, the infrastructure needs to improve application speed, energy efficiency, and server density are increasing.
- In the recent past, data was considered the foundation of an emerging economy. Almost all enterprises use more data than before and will probably consume even more data in the future. This rapidly increasing data generation must be stored and accessed from somewhere. According to Cisco Systems, the global IP data traffic increased from 96,054 petabytes per month in 2016 to 150,910 petabytes per month in 2018, and it reached 278,108 petabytes per month last year.
- Moreover, the rising demand for over-the-top (OTT) applications through an app or service that can be availed over the internet bypass traditional distribution practices. Services available for over-the-top services are significantly related to the media and communication sector, which can be accessed at a lower cost and contributes to massive data growth, thereby driving the market.
- Furthermore, owing to the rapidly increasing adoption of IoT, cloud, and Big Data, analytics across multiple enterprises as a part of their digital transformation strategy, the burden on the data centers is also increasing, leading to growth in the hyperscale data centers globally.
- Enterprises that offer large cloud services, e-commerce, advanced research of pharmaceuticals, oil and gas, aerospace, stock exchange, and others have invested in the network infrastructure they require. However, sourcing security solutions to meet these needs presents a challenge since existing next-generation firewalls (NGFWs) still need to meet the massive scale and performance needs of hyperscale architectures.
- With the recent outbreak of COVID-19 worldwide, the demand for the data center is bifurcated with strong buying by hyperscale companies and cloud platforms. In contrast, there was a slowdown in spending by many enterprise users. Pandemic-driven leasing activity was concentrated in significant cloud markets. After the pandemic, the market is growing rapidly with the increased adoption of digitization and enterprises moving toward hybrid and remote working models.
Hyperscale Data Center Market Trends
Growing Demand for Cloud Computing and Other Hight Performance Technologies Driving the Market
- The demand for cloud-based solutions is surging, owing to the growing application of technology and consumer propensity towards the cloud. This technology allows the user to access the data from remote locations. The increasing realization among companies about the importance of saving money and resources by moving their data to the cloud rather than building and maintaining on-premise infrastructure is driving the demand for cloud-based solutions.
- Owing to these benefits, large enterprises and SMEs are increasingly adopting cloud-based solutions. Over the next few years, cloud computing and virtualization will be able to save the setup cost of software by dividing it, ultimately leading to decreasing the use of hardware.
- Enterprises and government organizations worldwide are moving from test environments to placing more work-critical workloads and compute instances into the cloud. Similarly, for consumers, cloud services offer anywhere and easy access to content and services on multiple devices.
- The demand for data storage and managed hosting services is expected to increase dramatically across Indonesia. Jakarta's two Data Centers will accommodate clients' needs, particularly cloud service providers and the financial industry, which require flexible facility designs to help them achieve their business objectives. In April this year, NTT Ltd, one of the leading IT infrastructure and services companies, expanded its hyperscale data center footprint by launching the largest data center in Indonesia (Jakarta's third data center) to support the growing digital economy in Southeast Asia.
- One of the most common methods for businesses to use cloud computing is to use the numerous "as-a-service" alternatives provided by many major global technology corporations. These services give businesses access to computing power, software, and other cloud-related operations without the need for on-premises infrastructure. According to Flexera Software, as of March this year, 46% of respondents are already running significant workloads on Amazon Web Services.
Germany is Expected to Hold Major Market Share
- European digital traffic increased tremendously due to the surge in electronic transactions, systems, and digital information during the global pandemic. When paired with the rapid rise of new firms and the ever-increasing population, this boosts demand for hyperscale data centers.
- Over the past few years, the German data center market has grown notably with the rise in the development of hyperscale data centers, and owing to the implementation of GDPR, which has been driving investments and the regional cloud network development in Germany.
- The growing usage of the cloud and investments encourage many players in the country to improve cloud infrastructure in Germany, which drives the market's growth. For instance, in August 2021, Google announced it would invest EUR 1 billion by 2030 to enhance renewable energy use and develop its cloud computing infrastructure in Germany.
- In June this year, Vantage data centers announced the start of operations at two greenfield campuses in Berlin and Warsaw. The new sites are part of Vantage's USD 2 billion European expansion to offer hyperscalers and cloud providers with data center campuses in two sought-after markets.
- Moreover, in February this year, A 112-megawatt, 1.2 million sqft (108k sqm), hyper-scale data center campus is being built by Cloud HQ, a hyper-scale data center developer and operator in the US and Europe, in Offenbach, Germany, a city that borders Frankfurt to the southeast. With a total investment of EUR 1.1 billion (USD 1.15 billion), CloudHQ's Frankfurt data center campus will be one of Germany's biggest hyperscale data centers once fully constructed.
Hyperscale Data Center Industry Overview
The hyperscale data center market is moderately fragmented, with the presence of both global players and small and medium-sized enterprises. Moreover, hyperscale data centers are used in various industries to provide vendors with growth opportunities. Players in the market are adopting strategies, such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
Hyperscale Data Center Market Leaders
-
Digital Realty Trust Inc
-
Equinix Inc
-
Amazon Web Services Inc
-
NTT Ltd
-
Cyrusone Inc
*Disclaimer: Major Players sorted in no particular order
Hyperscale Data Center Market News
- July 2024: China announced the start of construction of a new hyperscale data center. Situated off the coast of Sanya on Hainan Island, this facility is designed to utilize the cooling properties of cold seawater, leading to a substantial reduction in energy consumption. Covering a vast area of 68,000 square meters, the ambitious project will house 100 data storage units. Each unit, weighing 1,300 tons, boasts the capability to process millions of high-definition images in mere seconds. While construction kicked off in April, the project is slated for completion within a five-year timeframe.
- April 2024: Colt DCS planned to double its data center facility in Hayes, West London, United Kingdom. The initial phase was expected to be around 60 MW of IT capacity, beginning in 2023, and it is expected to go live in 2025.
- December 2023: CyrusOne, the global data center developer and operator, officially commenced construction on its hyperscale data center in Frankfurt, Europe's data center capital. The facility, FRA5, is strategically situated in Hanau, 25km east of Frankfurt's center. The development will comprise two buildings, spanning 18,000 sqm of technical space and delivering an IT capacity of 54 megawatts. This marks a significant rejuvenation for a historic part of the city previously dedicated to industrial use.
- September 2023: EdgeConneX, a hyperscale data center solutions provider, announced a USD 403.8 million deal to accelerate its green initiatives to expand its data center footprint in Indonesia. EdgeConneX's transaction includes plans for increased sustainability capabilities such as power efficiency, renewable energy sources, and enhanced safety measures with plans to develop multiple data centers in the region, expanding the hyperscale campus in Indonesia to over 120 MW.
Hyperscale Datacenter Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions And Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Growing Demand for Cloud Computing and Other High-Performance Technologies
4.2.1.2 Rising Generative AI capabilities driving the demand for hyperscale facilities
4.2.2 Market Restraints
4.2.2.1 Data Center Security Challenges
4.2.2.2 Excessive Energy Consumption and Inefficient Capacity Planning
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Data Center Type
5.1.1 Enterprises/ Hyperscale Self-builds
5.1.2 Hyperscale Colocation
5.2 By Region
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Rest of North America
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 Germany
5.2.2.3 Netherlands
5.2.2.4 France
5.2.2.5 Ireland
5.2.2.6 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Singapore
5.2.3.4 Japan
5.2.3.5 Australia
5.2.3.6 Indonesia
5.2.3.7 Rest of Asia-Pacific
5.2.4 Middle East and Africa
5.2.5 South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Digital Realty Trust, Inc.
6.1.2 Equinix, Inc.
6.1.3 CyrusOne, Inc.
6.1.4 NTT Ltd
6.1.5 Quality Technology Services
6.1.6 Vantage Data Centers, LLC
6.1.7 Amazon Web Services, Inc.
6.1.8 Microsoft Corporation
6.1.9 Alphabet Inc.
6.1.10 Meta Platforms Inc.
- *List Not Exhaustive
7. INVESTMENTS ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. ABOUT US
Hyperscale Data Center Industry Segmentation
A data center can support hundreds of physical servers in it and several thousands of virtual machines. A hyperscale facility is made to support thousands of physical servers incorporating millions of virtual machines. These data centers offer robust, scalable applications, and a portfolio of services to individual consumers and businesses. As hyperscale computing is becoming more necessary for cloud and Big Data storage, the market is set to witness robust growth.
Factors driving and challenging the development of hyperscale data centers have been analyzed as a part of the study.
Major Hyperscale data center providers, especially FAMG are discussed in detail in the study. The report also covers how the recent outbreak of the pandemic affected the companies' operations overall and in terms of data center planning and construction activities.
The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
| By Data Center Type | |
| Enterprises/ Hyperscale Self-builds | |
| Hyperscale Colocation |
| By Region | |||||||||
| |||||||||
| |||||||||
| |||||||||
| Middle East and Africa | |||||||||
| South America |
Hyperscale Datacenter Market Research Faqs
How big is the Hyperscale Datacenter Market?
The Hyperscale Datacenter Market size is expected to reach USD 299.57 billion in 2024 and grow at a CAGR of 25.06% to reach USD 916.5 billion by 2029.
What is the current Hyperscale Datacenter Market size?
In 2024, the Hyperscale Datacenter Market size is expected to reach USD 299.57 billion.
Who are the key players in Hyperscale Datacenter Market?
Digital Realty Trust Inc, Equinix Inc, Amazon Web Services Inc, NTT Ltd and Cyrusone Inc are the major companies operating in the Hyperscale Datacenter Market.
Which is the fastest growing region in Hyperscale Datacenter Market?
Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Hyperscale Datacenter Market?
In 2024, the North America accounts for the largest market share in Hyperscale Datacenter Market.
What years does this Hyperscale Datacenter Market cover, and what was the market size in 2023?
In 2023, the Hyperscale Datacenter Market size was estimated at USD 224.50 billion. The report covers the Hyperscale Datacenter Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Hyperscale Datacenter Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major factors driving the growth of the Hyperscale Datacenter Market?
Hyperscale Datacenter Market growth is primarily driven by the increasing demand for cloud services, big data analytics, and IoT connectivity, which require extensive data storage and processing capabilities that only hyperscale data centers can provide.
Hyperscale Datacenter Industry Report
The hyperscale data center market is experiencing significant growth, driven by the increasing need for scalable and efficient data storage and processing solutions across various sectors. These data centers play a crucial role in supporting large-scale cloud operations, big data analytics, and the proliferation of IoT, all of which demand substantial computing power and storage capacity. This demand is particularly strong in key industries such as IT and telecom, BFSI, government, healthcare, and retail, which are all undergoing rapid digital transformation.
As organizations and individuals generate vast amounts of data, the deployment of advanced technologies and cloud-based solutions in hyperscale data centers has become essential. These centers are designed to integrate seamlessly with existing infrastructures, ensuring efficient data management and storage. Additionally, there is a growing emphasis on sustainable and green data center solutions to mitigate the environmental impact of traditional data center operations.
The industry reports and market research indicate that the hyperscale data center market is poised for continued growth. Market analysis and market trends highlight the importance of these centers in the current digital landscape. The market forecast suggests a positive outlook, with market leaders driving innovation and expansion in this field. Industry analysis and industry statistics further underscore the market's potential, with industry information revealing key insights into market segmentation and market value.
For those seeking detailed insights, a free report PDF download from Mordor Intelligenceā¢ Industry Reports provides a comprehensive historical overview and analysis of the hyperscale data center market. This report example offers valuable industry research, industry outlook, and market review, ensuring that stakeholders are well-informed about market data, market predictions, and industry trends.
In summary, the hyperscale data center market is characterized by robust market growth and a favorable market outlook. The market overview and market segmentation reveal the diverse applications and benefits of these centers. As the market continues to evolve, industry leaders and research companies will play a pivotal role in shaping the future of data management and storage solutions.
