Hyperscale Data Center Market by Component, Facility Size, End User, Verticals

Description

List of Tables

[187 Pages Report] The Hyperscale Data Center Market size was estimated at USD 45.55 billion in 2023 and expected to reach USD 54.79 billion in 2024, at a CAGR 20.93% to reach USD 172.36 billion by 2030.

In today's data-driven world, the need for large-scale data processing and storage solutions has never been more pressing. Among the various options available, hyperscale data centers have emerged as the most capable of meeting the demand for data processing. A hyperscale data center is a facility that supports robust and scalable workloads and is associated with large enterprises that require massive data processing and storage requirements. Large enterprises producing massive amounts of data have turned to reliable information storage infrastructure promoting the growth and development of hyperscale data centers. The significant support for smart city developments by governments worldwide leads to the development of hyperscale data centers to balance workloads and enhance network scalability. However, hyperscale data centers' storage issues and inefficient cooling mechanisms may adversely affect their development. Moreover, advancements and integration of artificial intelligence (AI), big data, blockchain technologies, and 5G network facilities create lucrative opportunities for deploying and developing hyperscale data center facilities worldwide.

KEY MARKET STATISTICS
Base Year [2023]	USD 45.55 billion
Estimated Year [2024]	USD 54.79 billion
Forecast Year [2030]	USD 172.36 billion
CAGR (%)	20.93%

Component : Preferences for solution to build robust infrastructure

In hyperscale data centers, storage, servers, and networking equipment balance workloads across multiple servers and automate data processing operations. A robust networking infrastructure is critical for seamless data exchange and minimal latency. Notable advancements include software-defined networking (SDN), network function virtualization (NFV), and edge computing technologies that offer advanced solutions for scalable network management. Efficient storage systems utilize solid-state drives (SSDs) or hard disk drives (HDDs) to provide high-capacity storage with low latency. Hyperscale data centers often opt for object-based storage for long-term data retention, such as Amazon S3 or Google Cloud Storage. Hyperscale data centers are expanding primarily due to the emphasis of businesses on achieving optimized workload management with increased agility, speed, and security by employing consulting, managed, professional support & maintenance services according to the need of the end-use sectors. Hyperscale data center providers offer strategic guidance on technology selection, system design, and implementation processes and assist in capacity planning, performance optimization, and security strategy development. Managed services involve the end-to-end management of the client's IT environment by the hyperscale data center provider, enabling remote monitoring and control of servers, storage, networks, applications, and security systems. Regular maintenance activities such as hardware replacement or software upgrades ensure continuous service availability and reduce operational risks. Clients need skilled personnel to manage the hyperscale data center's complex environment effectively. Hyperscale providers offer comprehensive training and education programs, which include technical courses, certifications, and workshops with IT professionals and the necessary knowledge and skills to manage and optimize public, private, or hybrid cloud environments.

Facility Size : On demand Large hyperscale providing cost-saving measures and increased capacity

Large hyperscale data centers are massive facilities that focus on providing high-capacity computing resources with a minimum footprint on power consumption, cooling requirements, and space utilization. These facilities often span over 500,000 square feet and have capacities ranging from 50 to 100+ megawatts (MW). Small and medium-sized hyperscale data center facilities typically cater to regional or local markets with more specific requirements. While they still focus on scalability and efficiency, these smaller facilities range from 10,000 to 500,000 square feet with capacities between 1 MW and 50 MW. These smaller facilities are ideal for businesses seeking localized services or requiring lower-latency connections within a specific geographic region. Large facilities benefit from economies of scale that enable cost-saving measures and increased capacity, while smaller facilities provide more targeted services with potentially lower latency. Organizations should consider factors such as their data storage and processing requirements, target markets, budget constraints, and long-term scalability needs when deciding on the size of a hyperscale data center to invest in or partner with.

End User : Increasing applicability for Hyperscale Data Center from Cloud Providers

Hyperscale data centers have emerged as a game-changer for cloud providers, colocation providers, and enterprises in the era of rapid digital transformation. These next-generation facilities offer unparalleled scalability, flexibility, and efficiency to support ever-evolving IT demands. Hyperscale data centers provide adaptable solutions that allow colocation providers to accommodate clients with varying requirements and facilitate rapid resource provisioning for their customers. These facilities adopt energy-efficient designs and renewable energy sources to minimize carbon footprints, enhancing the sustainability commitments of colocation providers. Hyperscale data centers support a virtually unlimited amount of resources, enabling organizations to quickly expand or contract their infrastructure based on fluctuations in workload. With rapid provisioning capabilities, hyperscale data centers help enterprises bring new applications online swiftly and respond faster to customer needs.

Verticals : Inclined Banking Financial Services and Insurance (BFSI) industry towards the adoption of Hyperscale Data Center

In the digital transformation era, various industry verticals are leveraging the power of hyperscale data centers to enhance their operations and competitiveness. The exponential growth of data in the Banking, Financial Services, and insurance (BFSI) and government & education sectors are inclining toward employing hyperscale data center solutions to manage the data efficiently. The hyperscale data centers amplify Banking, Financial Services and Insurance (BFSI) to simplify complex financial transactions, improve risk management, and enhance customer service through advanced analytics and real-time monitoring. The hyperscale data centers facilitate cost-effective storage solutions and enhanced computing power for research, e-governance initiatives, and e-learning platforms. In addition, they also enable collaboration among institutions across borders while maintaining compliance with local data sovereignty laws. The adoption of advanced AR & VR technologies in the gaming & entertainment sectors is increasing the requirement for hyperscale data center solutions to store and handle data traffic generated from various sources. Robust infrastructure for cloud computing services, 5G network deployment support, seamless connectivity with IoT devices, and advanced cybersecurity solutions in the IT and Telecom sectors is aiding the expansion of the hyperscale data centers. The automotive and manufacturing sector widely uses hyperscale data center solutions as these verticals are adopting cloud-based services necessitating enhanced data storage systems. Moreover, the hyperscale data centers drive growth and innovation across retail & eCommerce, manufacturing, and healthcare sectors by providing advanced computing resources, efficient power management solutions, and secure storage facilities that can scale according to each industry's unique requirements. Their ability to provide immense scalability, agility, and cost-effectiveness has made them indispensable for driving innovation and competitiveness in today's interconnected world.

Regional Insights

The Americas region's hyperscale data center market proliferates with the increasing digital transformation in manufacturing, healthcare, IT & telecommunications. The rising government initiatives by the governments of the U.S., Europe, India, Australia, and China, for digitalization across various verticals are creating the potential to deploy hyperscale data centers to enhance data processing and provide high-speed internet connectivity. The initiatives such as Digital EU, Digital India, Digital China, UAE's digital strategy, and Australia's Digital Future Initiative support digital transformation across various industrial verticals in the respective countries. Additionally, the market players in the Asia-Pacific region are heavily investing in setting up hyperscale data centers to increase data storage capacity in their regions. Several regional startups are raising funds for hyperscale data centers that require a multifaceted approach and combine venture capital investment, strategic partnerships, growth equity financing, government support, and debt financing to ensure the successful deployment and management of these crucial digital infrastructure assets.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Hyperscale Data Center Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Hyperscale Data Center Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Hyperscale Data Center Market, highlighting leading vendors and their innovative profiles. These include 365 Data Centers, AirTrunk Operating Pty Ltd., ALE International SAS, Amazon Web Services, Inc., Arista Networks, Inc., Broadcom Inc., China Telecom Corporation Limited, Chindata Group Holdings Limited, Cisco Systems, Inc., CtrlS Datacenters Ltd., Dell Technologies Inc., Delta Electronics, Inc., EdgeConneX Inc., Extreme Networks, Inc., Google LLC by Alphabet Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., Intel Corporation, International Business Machines Corporation, Iron Mountain Incorporated, Juniper Networks, Inc., Lenovo Group Ltd., LightWave Networks, Inc., Marvell Technology, Inc., Meta Platforms, Inc., Microsoft Corporation, Nlyte Software Ltd., NTT Corporation, NVIDIA Corporation, and TierPoint, LLC.

Market Segmentation & Coverage

This research report categorizes the Hyperscale Data Center Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component
- Services
  - Consulting Services
  - Managed Services
  - Professional Services
  - Support & Maintenance
  - Training & Education

Solutions
- Networking
- Server
- Software
- Storage

Facility Size
- Large Facility
- Small & Medium Facility

End User
- Cloud Providers
- Colocation Providers
- Enterprises

Verticals
- Banking Financial Services & Insurance
- Gaming & Entertainment
- Government & Education
- Healthcare & Lifesciences
- IT & Telecom
- Manufacturing
- Retail & eCommerce

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Hyperscale Data Center Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Hyperscale Data Center Market?

3. What are the technology trends and regulatory frameworks in the Hyperscale Data Center Market?

4. What is the market share of the leading vendors in the Hyperscale Data Center Market?

5. Which modes and strategic moves are suitable for entering the Hyperscale Data Center Market?

Product Code: MRR-430D3EB7245C

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Massive production of data by large enterprises and need for reliable information storage infrastructure
  - 5.1.1.2. Government incentives and initiatives to propel investments in hyperscale data centers
  - 5.1.1.3. Focus on smart city development and deployment of a major hyperscale data center
- 5.1.2. Restraints
  - 5.1.2.1. Storage issues and inefficient cooling mechanism of hyperscale data centers
- 5.1.3. Opportunities
  - 5.1.3.1. Advancements in hyperscale data centers primarily focused on AI, Big Data, and blockchain technologies
  - 5.1.3.2. Emergence of hyperscale data centers backed by 5G network facilities
- 5.1.4. Challenges
  - 5.1.4.1. Concerns associated with data privacy and security at hyperscale data centers
5.2. Market Segmentation Analysis
- 5.2.1. Component : Preferences for solution to build robust infrastructure
- 5.2.2. Facility Size : On demand Large hyperscale providing cost-saving measures and increased capacity
- 5.2.3. End User : Increasing applicability for Hyperscale Data Center from Cloud Providers
- 5.2.4. Verticals : Inclined Banking Financial Services and Insurance (BFSI) industry towards the adoption of Hyperscale Data Center
5.3. Market Trend Analysis
- 5.3.1. Government support and expansion of hyperscale data centers boosts the evolution in the Americas.
- 5.3.2. The promising government endeavors and substantial engagement of overseas firms expand the market growth in the APAC region.
- 5.3.3. Regional players' investments in hyperscale data center facilities encourages the growth in the EMEA region.
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis

6. Hyperscale Data Center Market, by Component

6.1. Introduction
6.2. Services
6.3. Solutions

7. Hyperscale Data Center Market, by Facility Size

7.1. Introduction
7.2. Large Facility
7.3. Small & Medium Facility

8. Hyperscale Data Center Market, by End User

8.1. Introduction
8.2. Cloud Providers
8.3. Colocation Providers
8.4. Enterprises

9. Hyperscale Data Center Market, by Verticals

9.1. Introduction
9.2. Banking Financial Services & Insurance
9.3. Gaming & Entertainment
9.4. Government & Education
9.5. Healthcare & Lifesciences
9.6. IT & Telecom
9.7. Manufacturing
9.8. Retail & eCommerce

10. Americas Hyperscale Data Center Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Hyperscale Data Center Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Hyperscale Data Center Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. NTT launches Chennai hyperscale data center campus
- 13.3.2. NTT signs agreement with Prestige to develop a data center in Bengaluru
- 13.3.3. Swedish startup Evroc looks to raise EUR 3 billion for two hyperscale data centers
- 13.3.4. Blackstone's Lumina CloudInfra to invest over USD 300 million to set up Navi Mumbai hyperscale data center
- 13.3.5. Khazna Data Centers partners with Benya Group to build Egypt's first hyperscale Data Center
- 13.3.6. Bharti Airtel to Invest INR 2,000 Crore to set up Hyperscale data Centre in Hyderabad.
- 13.3.7. Vantage Enters London Market, Expanding European Footprint
- 13.3.8. Aligned Data Centers to Acquire ODATA
- 13.3.9. Blackstone launches its Asian Data center business from India.
- 13.3.10. Partners Group Acquires EdgeCore, Plans to Invest USD 1.2 Billion in Data Center Growth
- 13.3.11. Dow Launches New DOWSIL Immersion Cooling Technology to Improve Sustainability and Efficiency of Data Centers
- 13.3.12. Wesco International Announces Agreement to Acquire Rahi Systems, a Provider of Global Hyperscale Data Center Solutions.

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio