by The Hyperscale Data Center Market is estimated to be valued at US$ 87.87 Bn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hyperscale data centers are large-scale data centers, housing hundreds or thousands of computer servers to cater to large volumes of data and derive insights and business value. They are designed efficiently to power workloads like cloud computing, big data and AI. Hyperscale data centers cater to cloud service providers and internet companies to support their massive computing and storage needs for a growing number of internet users and connected devices.
Market Dynamics:
Growing popularity of cloud-based services, especially amongst small and medium enterprises is a key driver of hyperscale data center market growth. Cloud computing allows easy access to compute power, databases, analytics and more from anywhere through internet, without having to maintain expensive IT infrastructure. This has boosted adoption of Software-as-a-Service (SaaS) applications for enterprises. Additionally, rise in data traffic due to increasing digitalization across industries has compelled companies to heavily invest in developing and expanding hyperscale data centers to cost-effectively manage large volumes of data. Increased demand for data analytics, edge computing and other data-intensive applications has necessitated establishment of geographically distributed, large data centers for seamless delivery of such resource-intensive services.
Segment Analysis
The hyperscale data center market can be segmented based on the types of infrastructure into electrical infrastructure, mechanical infrastructure, general construction. The mechanical infrastructure segment is dominating the hyperscale data center market as it holds the responsibility of controlling critical environmental variables like temperature, pressure and humidity inside data centers through HVAC systems, CRAH units, chillers etc. It helps ensure optimal operating conditions for sensitive servers and networking equipment.
PEST Analysis
Political: Favorable government policies and tax incentives promoting investments in data center infrastructure to support digital economy and economic development.
Economic: Growing demand for hyperscale cloud, big data analytics, and 5G is boosting investments in hyperscale data centers. However, high initial investments pose challenges.
Social: Increasing internet penetration and bandwidth usage is driving the need for hyperscale data centers. Growing reliance on internet-based services is increasing dependency on cloud and data storage infrastructure.
Technological: Adoption of modular, energy-efficient infrastructure design along with use of AI/ML, IoT, and edge computing helps optimize costs and improves efficiency of hyperscale facilities.
Key Takeaways
The Global Hyperscale Data Center Market Growth is expected to witness high, exhibiting CAGR of 30. % over the forecast period, due to increasing demand for cloud computing and data analytics services among enterprises. The market size is estimated to reach US$ 789 Bn by 2030 from US$ 87.87 Bn in 2023.
Regional analysis: North America dominates currently due to concentration of key tech giants like Google, Amazon, Microsoft, Apple. Asia Pacific market is expected to grow at fastest pace owing to growing investments by global cloud providers in countries like China, India and Japan on back of increasing internet penetration and digitization.
Key players: Key players operating in the hyperscale data center market are Aecom, DPR Construction, Holder Construction, Jacobs, Bouygues Construction. These companies are focusing on adopting prefabricated and modular infrastructure to reduce costs and construction timelines of hyperscale projects. Players are also investing in renewable energy solutions to reduce power costs and achieve sustainability goals of cloud giants.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
