Hyperscale Data Centers Global Market Report 2024

The hyperscale data centres market size has grown rapidly in recent years. It will grow from $92.85 billion in 2023 to $108.13 billion in 2024 at a compound annual growth rate (CAGR) of 16.5%. The growth observed in the historical period can be attributed to various factors, including the expansion of cloud computing, the proliferation of internet services, the explosion of data generation and storage, and a focus on energy efficiency within hyperscale data centers. These elements collectively contributed to the growth and development of hyperscale data centers during that period.

The hyperscale data centres market size is expected to see rapid growth in the next few years. It will grow to $204.92 billion in 2028 at a compound annual growth rate (CAGR) of 17.3%. Anticipated growth in the forecast period can be attributed to several factors, including the continuous increase in data volumes, the expansion of edge computing, the ongoing growth of cloud services, and the utilization of artificial intelligence (AI) and machine learning in hyperscale data centers. Furthermore, significant trends expected in the forecast period encompass the dominance of cloud computing, the prominent role of AI and machine learning, the adoption of hybrid and multi-cloud strategies, and the implementation of software-defined data centers (SDDCs) as key elements in the development of hyperscale data center infrastructure.

The surge in internet users results in an amplified data generation that necessitates management and storage by hyperscale data centers. For example, according to the Canadian Internet Use Survey 2022 by Statistics Canada in July 2023, internet usage among Canadians aged 15 and older escalated from 92% in 2020 to 95% in 2022. Notably, individuals aged 75 years and older witnessed a significant increase, rising from 62% in 2020 to 72% in 2022. The mounting count of internet users and the availability of faster wireless internet connections drive the demand in the hyperscale data centers market.

Hyperscale data centers serve a variety of user types, including cloud providers, colocation providers, and enterprises. These centers are comprised of a combination of solutions and services. Cloud providers, for instance, are responsible for managing software infrastructures that store data on remote servers. Data centers come in various sizes, with distinctions between small and medium-sized data centers and larger facilities. Data hosted within hyperscale data centers is typically accessible over the Internet, offering wide-reaching connectivity. These data centers cater to an array of applications across sectors such as manufacturing, government utilities, banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, healthcare, and the energy industry.

The hyperscale data centers market research report is one of a series of new reports that provides hyperscale data centers market statistics, including hyperscale data centers industry global market size, regional shares, competitors with a hyperscale data centers market share, detailed hyperscale data centers market segments, market trends and opportunities, and any further data you may need to thrive in the hyperscale data centers industry. This hyperscale data centers market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Anticipated growth in cloud-based services is expected to propel the expansion of the hyperscale data center market. Cloud-based services encompass a range of resources delivered over the Internet from remote data centers or cloud providers. They play a pivotal role in hyperscale data centers by consuming their extensive computing and storage resources to offer scalable and on-demand services to users. As per Eurostat’s data in December 2021, 41% of EU enterprises utilized cloud computing in 2021. Large enterprises witnessed substantial usage, with 72% in 2021, a 7% increase from 2020. Medium-sized and small enterprises also showed growth in their cloud computing usage, with 53% and 38% respectively in 2021. Hence, the growth in cloud-based services is steering the hyperscale data center market.

Hyperscale data centers necessitate a constant high-power supply for processing and storing data. Forbes Technology Council’s report revealed that U.S. data centers consumed more than 90 billion kilowatt-hours of electricity annually. The facilities depend on power for data-intensive operations, and any power outage can bring data center operations to a standstill. For example, a 30-minute power failure impacted Amazon's data center in the US-EAST-2 region, causing connectivity issues that affected several services such as RDS, Redshift, WorkSpaces, EC2, and EBS stored in the US-EAST-2 data center, resulting in significant disruption to Amazon's business model and services.

The major entities operating in the hyperscale data market are actively investing in alternative solutions to meet the high-power demands of their existing and upcoming facilities worldwide. This strategic shift aims to reduce their carbon footprint and promote sustainability. Leading data center providers are notably acquiring clean, renewable energy sources to power their operations. For example, Apple's announcement of a $921 million investment in constructing a hyperscale infrastructure facility in Denmark indicates their commitment to exclusively utilizing renewable energy sources. Similarly, Google has plans to invest approximately $700 million in a Danish data center, intending to harness renewable energy through power purchase agreements (PPAs).

Data storage and transportation within data centers are regulated by government agencies in individual countries. In India, the Data Privacy and Protection Bill was passed to oversee and regulate data stored within the country's borders. This bill, particularly under Section 4, establishes a statutory Right to Privacy. It grants the Indian Central Government the authority to designate categories of personal data that must be stored within India-based data centers. Moreover, the Indian Central Government is mandated to ensure compliance with these regulations.

Major companies operating within hyperscale data centers are significantly concentrating on the introduction of new data centers like SGRUTB05, aiming to gain a competitive advantage in the market. SGRUTB05 operates solely with certified renewable energy and is designed to function with an exceptional Power Usage Effectiveness (PUE) of less than 1.4. For example, in May 2023, Scala Data Centers, a US-based data center provider, unveiled SGRUTB05. This site is the second-largest vertical data center in Latin America, situated in the Tamboré Campus in Barueri City, São Paulo State, Brazil. With 6 MW of IT capacity, SGRUTB05 contributes to the Tamboré Campus, recognized as the most extensive data center complex in Latin America and one of the world's top five in terms of size. Spanning 6,700 sq m, this 35.5-meter high facility encompasses five floors, three of which are dedicated to data halls, housing a high-density of nearly 400 racks with an aggregated power capacity of almost 9 MW.

Major companies operating in the hyperscale data centres market include NVIDIA Corporation, Cisco Systems Inc., Telefonaktiebolaget LM Ericsson, Huawei Technologies Co. Ltd., International Business Machines Corporation, Hewlett-Packard Company, Dell Inc., Orange Business Services, Cavium Inc., Lenovo Group Ltd., Hewlett-Packard Company, Intel Corporation, Western Digital Corporation, NVIDIA Corporation, Oracle Corporation, OVHcloud Company, Tencent Holdings Limited, Alibaba Group Holding Limited, Apple Inc., Microsoft Corporation, Meta Platforms Inc., Equinix Inc., Digital Realty Trust Inc., CyrusOne Inc., NTT Communications Corporation, Interxion Holding N.V., Global Switch Holdings Limited, CoreSite Realty Corporation, QTS Realty Trust Inc., Switch Inc., Iron Mountain Incorporated, Cologix Inc., Cyxtera Technologies Inc., Zayo Group Holdings Inc., CenturyLink Inc., AT&T Inc., Verizon Communications Inc.

The Asia-Pacific was the largest region in the hyperscale data centers market in 2023. Asia-Pacific is expected to be the fastest-growing region in the hyperscale data centers market report analysis during the forecast period. The regions covered in the hyperscale data centres market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the hyperscale data centres market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The hyperscale data centers market consists of revenues earned by entities by providing hyper scale data centers which support a large number of physical and virtual servers at the same time. This industry includes companies with distributed data warehouses that focus on maintaining the data's scalability and managing a large amount of data. Hyperscale data centers operate in buildings or dedicated space within a building, or a group of buildings that house computer systems and related components, such as telecommunications and storage systems on large scale with thousands of individual servers operating together through a high-speed network. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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