Hyperscale data center companies design, build, and operate data centers with enormous capacity and scalability. These data centers cater to the high-demand requirements of cloud service providers, internet companies, and large enterprises. Hyperscale data centers play a pivotal role in supporting the growing data and computational needs of the digital era.
Competitive Landscape of Hyperscale Data Center Market
The hyperscale data center market is a dynamic and rapidly evolving space, driven by the ever-growing demand for cloud computing, artificial intelligence, and other data-intensive technologies. As a result, the market is witnessing intense competition between established giants and emerging players, all vying for their share of the pie.
Key Players:
Strategies Adopted:
Factors for Market Share Analysis:
Several factors influence market share in the hyperscale data center market, including:
New and Emerging Companies:
Several new and emerging companies are entering the hyperscale data center market, focusing on specific niches or offering innovative technologies. Some notable examples include:
Current Company Investment Trends:
The hyperscale data center market is witnessing significant investments from companies across different segments. Some of the key trends include:
Latest Company Updates:
On Oct.30, 2023, Vantage Data Centers, a global leader in hyperscale data center campuses, announced the completion of a previously announced investment partnership with a consortium of investors, including DigitalBridge Group, Inc., MEAG, and Infranity in certain Vantage European data center assets. The investment partnership will enable Vantage to employ additional capital to continue fostering its EMEA platform, delivering high-quality hyperscale data center campuses.
On Sep. 14, 2023, Colt Data Centre Services (DCS), a leading provider of hyper-scale and large enterprise data center solutions, launched its first data center in Navi Mumbai, India. The data center marks Colt DCS' strategic expansion and commitment to supporting the increasing demand of hyper-scale cloud service providers and large enterprise businesses in the fast-growing Indian data center market.
On Aug. 25, 2023, CtrlS Datacenters Ltd., a leading Data Centre (DC) operator in Asia and National Telecom Public Company (NT), a telecom provider, announced their collaboration to build a hyperscale data center campus in Thailand. The collaboration will elevate the convergence of data center, cable landing stations & terrestrial networks for CtrlS' first overseas 150-MW data center campus. The greenfield data center campus marks CtrlS' first international market expansion and its first hyperscale data center campus in Thailand.
On May 24, 2023, Lumina CloudInfra, a prominent data center platform, announced the commencement of construction activities of its hyperscale data center in Navi Mumbai. The new state-of-the-art facility is set to encompass multiple data center buildings, boasting an impressive capacity that surpasses 60 megawatts of critical IT load. Lumina CloudInfra aims to bring innovative opportunities to investors and consumers worldwide.
Hyperscale Data Center Market Size was valued at USD 18.0 billion in 2022. The Hyperscale Data Center market industry is projected to grow from USD 22.86 Billion in 2023 to USD 95.9 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 27.0% during the forecast period (2023 - 2030). In recent years, hyperscale data centers have gained significant power to cater to the growing computing and storage demands of high-end applications. This has led to increased complexity in data centers as businesses continue to rely heavily on critical applications. As the popularity of the web, e-commerce, social media, big data, computing, online gaming hosting, and Hadoop continues to rise, there is a greater need to enhance infrastructure to improve application speed, server density, and energy efficiency. Such market drivers enhances the market growth.
Figure 1: Hyperscale Data Center Market Size, 2023-2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increasing need for data storage and processing capabilities is one of the major drivers of the hyperscale data center market CAGR. As businesses generate and collect more data than ever before, there is a growing need for large-scale data storage and processing capabilities to manage this data effectively. Hyperscale data centers are designed to provide the high-performance computing power and storage capacity needed to handle massive amounts of data quickly and efficiently.
In recent years, the volume of data generated by businesses and individuals has increased exponentially, thanks to the growing popularity of IoT devices, social media platforms, e-commerce, and big data analytics. This has created a need for new and innovative solutions to store, process, and manage this data. Hyperscale data centers are designed to meet this need by providing scalable and flexible infrastructure that can handle large volumes of data in real-time. Data was once thought to be the foundation of an emerging economy. Almost all businesses use more data than they did previously, and they will almost certainly consume even more data in the future. This massive amount of data must be stored and accessed from somewhere. 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, according to Cisco Systems.
The demand for hyperscale data centers is also being driven by the increasing adoption of cloud computing services. Cloud computing providers use hyperscale data centers to offer customers on-demand access to computing resources, storage, and applications. This allows businesses to scale their IT infrastructure as needed, without the need for large capital investments in hardware and software. Thus, these factors are driving the Hyperscale Data Center market revenue.
The global Hyperscale Data Center market segmentation, based on Solution includes Storage, Server, and Software. The server segment holds the largest market share in the global hyperscale data center market. This is because servers are the primary computing resource in a data center, and hyperscale data centers typically contain a large number of servers to support the high-performance computing requirements of large-scale data processing.
The global Hyperscale Data Center market segmentation, based on Type, includes Cloud Providers and Enterprises. The cloud providers segment holds the largest market share in the global hyperscale data center market. This is because cloud providers are the primary users and buyers of hyperscale data centers, as they require large-scale infrastructure to provide cloud services to businesses and individuals.
Figure 2: Global Hyperscale Data Center Market, by Type, 2022 & 2030 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The global Hyperscale Data Center market data, based on Vertical, includes BFSI, Healthcare, and IT & Telecommunication. The IT & Telecommunication segment holds the largest market share in the global hyperscale data center market. This is because IT & Telecommunication companies generate and manage large amounts of data on a daily basis, and they require highly efficient and scalable data center infrastructure to handle their computing and storage needs.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America holds the largest share of the hyperscale data center market, with the United States being the major contributor to the region's growth. The region's dominance can be attributed to the presence of major cloud providers, such as Amazon Web Services, Microsoft, and Google, which have established their hyperscale data centers in the region. The region also has a mature IT infrastructure, a large number of data-intensive businesses, and favorable government regulations that promote the growth of data centers.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: GLOBAL HYPERSCALE DATA CENTER MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Hyperscale Data Center market accounts for the second-largest market share. The growth of the hyperscale data center market in Europe is driven by the increasing adoption of cloud services and the need for high-performance computing and storage infrastructure. The region also has strict data protection regulations that require businesses to store their data within the European Union, further driving the growth of the hyperscale data center market. Further, the German Hyperscale Data Center market held the largest market share, and the UK Hyperscale Data Center market was the fastest growing market in the European region
The Asia-Pacific Hyperscale Data Center Market is the fastest-growing market for hyperscale data centers, driven by the increasing demand for cloud services, big data analytics, and the adoption of new technologies such as AI and IoT. The region has a large population, a growing economy, and a rapidly expanding digital landscape, which is driving the growth of the hyperscale data center market. China, Japan, and India are the major contributors to the market growth in the Asia-Pacific region. Moreover, China’s Hyperscale Data Center market held the largest market share, and the Indian Hyperscale Data Center market was the fastest growing market in the Asia-Pacific region.
In order to drive further growth in the hyperscale data center market, the leading market players are heavily investing in research and development to expand their product portfolios. These companies are also engaging in various market developments to expand their global reach, including launching new products, entering into contracts, merging with or acquiring other organizations, making higher investments, and collaborating with other companies.
To remain competitive and thrive in an increasingly crowded market, the hyperscale data center industry must focus on providing cost-effective solutions to customers. This means that companies must continue to innovate and find ways to increase efficiency and reduce costs, while still maintaining high levels of performance and reliability.
In recent years, the Hyperscale Data Center industry has offered some of the most significant advantages to data storage. Major players in the Hyperscale Data Center market, including Cisco Systems Inc. (US), IBM Corporation (US), Huawei Technologies Co. Ltd. (China), and Others.
Cisco Systems Inc. is a multinational technology company that provides a wide range of networking and communication products and services. The company was founded in 1984 and is headquartered in San Jose, California, USA. Cisco has a global presence, with operations in over 100 countries and more than 75,000 employees. Cisco is a leader in networking technologies, providing solutions that enable businesses to connect and collaborate in a secure and reliable way. The company's products and services include networking hardware, such as routers, switches, and firewalls, as well as software and cloud-based services, such as network management tools and cybersecurity solutions.
IBM Corporation is a global technology company that provides hardware, software, and services solutions. The company offers a range of services, including cloud computing, big data and analytics, artificial intelligence, and cybersecurity. IBM also provides server and storage systems designed to handle the high demands of hyperscale data centers. The company has a significant presence in the technology industry, with operations in over 100 countries and more than 350,000 employees. IBM's solutions and services are designed to help businesses maximize the value of their IT investments and to enable them to connect and collaborate in a secure and efficient way.
November 2022: BDx, Indosat Ooredoo Hutchison, and PT Aplikanusa Lintasarta have announced their intention to construct a new data center complex, CGK5, in Karawang, West Java, Indonesia. The 100MW data center campus will cover an area of 12 acres and will be part of the company's third availability zone. This project is a significant part of BDx's platform and represents the company's 11th data center in the Asia-Pacific region. With over USD 1 billion committed to investment funding, BDx has the capacity for scaled innovation in challenging markets. The project is expected to contribute to the continued growth of BDx's development across the region.
June 2022: Equinix Inc., a global leader in digital infrastructure, and PGIM Real Estate, the real estate investment and financing arm of Prudential Financial's global asset management business, have announced the opening of SY9x, the xScale data center located in Sydney. The launch of this data center is a result of the successful completion of the joint venture between the two companies, which amounted to USD 575 million. The opening of SY9x represents a significant milestone for the partnership and the expansion of their digital infrastructure services in the Asia-Pacific region.
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
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