Hyperscale Data Center Market Analysis and Forecast by Size, Share, Growth, Trends 2031

Hyperscale Data Center Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Solution (Storage, Networking, Server, Security, and Others), End User (Enterprises, Colocation Providers, and Cloud Providers), Vertical (BFSI, Telecom and IT, Media and Entertainment, Government and Public, and Others), and Geography

  • Report Code : TIPRE00023893
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 150

Hyperscale Data Center Market Outlook, Share, and Size 2031

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The hyperscale data center market size is expected to reach US$ 355.87 billion by 2031 from US$ 80.45 billion in 2023. The market is estimated to record a CAGR of 20.4% from 2023 to 2031. The integration of IoT is likely to bring in key market trends during the projected period.

Hyperscale Data Center Market Analysis

The report includes growth prospects owing to the current hyperscale data center market trends and their foreseeable impact during the forecast period. Hyperscale data centers are gaining significant demand because of their features such as high computing, storage, and bandwidth capacities. Moreover, their ability to move massive amounts of data adds to their popularity. These data centers are cost-effective, scalable, safer, more dependable, and less harmful to the environment. Hyperscale data centers offer services such as data storage, management, backup, and recovery. They also power online gaming communities, facilitate high-volume transactions, and support cutting-edge technology implementation (such as big data, machine learning, and artificial intelligence). As a result, many companies and governmental organizations have begun to manage their own data centers or employ third parties such as Google and Amazon for cloud-based storage or even server rentals, which would continue to fuel the hyperscale data center market growth during the forecast period.

Hyperscale Data Center Market Overview

Hyperscale data centers, with their enormous computing, storage, and bandwidth capacities, as well as their potential to handle enormous volumes of data transfers, have revolutionized the data center industry. This development has completely changed the way businesses interact and collaborate. With the adoption of work-from-home policies in various organizations worldwide since the onset of the COVID-19 pandemic, the demand for data centers has been continuously increasing. Various large organizations such as Facebook and Twitter, and financial and professional service firms allowed their employees to work from home during the pandemic, which became one of the main reasons for the increase in the demand for hyperscale data centers worldwide.

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Hyperscale Data Center Market: Strategic Insights

Hyperscale Data Center Market
  • CAGR
    CAGR (2023 - 2031)
    20.4%
  • Market Size 2023
    US$ 80.45 Billion
  • Market Size 2031
    US$ 355.87 Billion

Market Dynamics

GROWTH DRIVERS
  • The advent of IoT, big data, machine learning, and AI, Increase in data traffic
FUTURE TRENDS
  • Increasing Demand for Sustainable Hyperscale Data Centers
OPPORTUNITIES
  • Increasing Deployment of 5G Services, Rising Demand for Cloud Computing

Key Players

  • ABB Ltd
  • Dell Inc
  • EdgeConneX Inc
  • Cisco Systems Inc
  • International Business Machines Corp
  • Fujitsu Ltd
  • Hewlett Packard Enterprise Development LP
  • Intel Corporation
  • Juniper Networks Inc
  • Schneider Electric SE

Regional Overview

Regional Overview
  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Market SegmentSolutions
  • Storage
  • Networking
  • Server
  • Security
Market SegmentEnd User
  • Colocation Providers
  • Enterprises and Cloud Providers
Market SegmentIndustry Vertical
  • BFSI
  • Telecom and IT
  • Government and Public
  • Media and Entertainment
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Hyperscale Data Center Market Drivers and Opportunities

Advent of IoT, Big Data, Machine Learning, and AI Drives Hyperscale Data Center Market Growth

The Internet of Things (IoT), big data, machine learning, and artificial intelligence (AI) are a few technologies that generate massive data volumes, require low-latency processing, and demand localized computing resources. IoTExpress Technologies Pvt. Ltd. projected the number of IoT devices to surpass 15 billion by the end of 2023 in Asia Pacific, recording a 55% increase from 2020. Additionally, these devices are expected to generate 79.4 zettabytes (ZB) of data by 2025. IoT generates huge volumes of data that must be processed, stored, and analyzed in real time. IoT devices are widely used across the region, connecting various physical objects and enabling data collection and communication. The data centers positioned at the edge of the network can provide local computing power, storage, and analytics capabilities, reducing the latency and bandwidth requirements while transmitting data to a centralized data center. It can also enable real-time decision-making and facilitate IoT deployments across the manufacturing, healthcare, transportation, and smart city industries. Further, processing and analyzing such massive datasets require significant computational power and storage capabilities. Hyperscale data centers offer a scalable and distributed architecture, allowing organizations to process and analyze big data. Moreover, they enhance data processing efficiency and enable real-time analytics. Also, machine learning and AI algorithms require substantial computational resources for training and inference tasks. Hyperscale data centers provide the necessary processing power and storage capabilities to perform these resource-intensive tasks in the vicinity of the data source. Organizations can reduce the latency by deploying hyperscale data centers at the edge. This enables real-time decision-making, enhances AI-driven applications, and supports use cases such as autonomous vehicles, intelligent video analytics, predictive maintenance, and personalized recommendations. Therefore, the advent of technologies such as the IoT, machine learning, big data, and AI bolsters the hyperscale data center market.

Rising Demand for Cloud Computing

Cloud computing provides a cost-effective way to handle data, enabling organizations to store and process it in a centralized location without investing in expensive hardware and infrastructure. The increased adoption of cloud computing services propels the demand for hyperscale data center services. The integration of cloud technologies with interconnected devices and systems has resulted in an increased preference for these devices, resulting in a growing need for high-speed, low-latency network connectivity. Hyperscale data centers offer a secure hardware environment to store and access data, which is essential to support IoT and cloud-based applications, as well as help save overall costs.

With the growing adoption of cloud-based technologies, key players in the hyperscale data center market are establishing new units for their businesses to make the cloud and digital infrastructure more accessible. In September 2021, Vantage Data Centres opened a new facility in APAC with the help of two acquisitions and an equity raise of US$ 1.5 billion led by DigitalBridge Investment Management. With this expansion, the company began offering cloud-based services across Tokyo and Osaka (Japan), Hong Kong (China), Kuala Lumpur (Malaysia), and Melbourne (Australia). The launch of new data centers is attracting more customers to leverage the services of advanced technologies. Thus, the ongoing proliferation of cloud-based services is expected to bolster the hyperscale data center market growth during the forecast period.

Hyperscale Data Center Market Report Segmentation Analysis

Key segments that contributed to the derivation of the hyperscale data center market analysis are solution, end user, and vertical.

  • Based on solution, the market is divided into storage, networking, server, security, and others. The storage segment held the largest hyperscale data center market share in 2023.
  • By end user, the market is segmented into enterprises, colocation providers, and cloud providers. The colocation providers segment dominated the market in 2023.
  • In terms of vertical, the hyperscale data center market is segmented into BFSI, telecom and IT, media and entertainment, government and public, and others. The BFSI segment dominated the market in 2023.

Hyperscale Data Center Market Share Analysis by Geography

  • The hyperscale data center market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC.
  • North America held the largest hyperscale data center market share in 2023. Key North American countries are mostly focused on improving corporate infrastructure and developing new technologies. Significant volumes of data are being generated with advancements in the corporate sector, and this data needs to be efficiently handled and stored. The majority of the dominant companies in the data center market are headquartered in North America. In addition, organizations are progressively utilizing managed services, colocation, cloud services, and additional hybrid methods to introduce novel products and services, evaluate innovative business models, and establish stronger connections with their clientele. Thus, all the above factors are fueling the growth of the hyperscale data center market in the region.

Hyperscale Data Center Market Report Scope

Report Attribute Details
Market size in 2023 US$ 80.45 Billion
Market Size by 2031 US$ 355.87 Billion
Global CAGR (2023 - 2031) 20.4%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Solutions
  • Storage
  • Networking
  • Server
  • Security
By End User
  • Colocation Providers
  • Enterprises and Cloud Providers
By Industry Vertical
  • BFSI
  • Telecom and IT
  • Government and Public
  • Media and Entertainment
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • ABB Ltd
  • Dell Inc
  • EdgeConneX Inc
  • Cisco Systems Inc
  • International Business Machines Corp
  • Fujitsu Ltd
  • Hewlett Packard Enterprise Development LP
  • Intel Corporation
  • Juniper Networks Inc
  • Schneider Electric SE
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Hyperscale Data Center Market News and Recent Developments

The hyperscale data center market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the hyperscale data center market are listed below:

  • Digital Realty, the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, and Blackstone Inc. announced that Blackstone-affiliated funds led by Infrastructure, Real Estate and Tactical Opportunities have agreed to establish a joint venture with Digital Realty to develop four hyperscale data center campuses across three metro areas in two continents. The developments are expected to support approximately 500 megawatts (MW) of total IT load upon full build out of all campuses.

(Source: Digital Realty, Press Release, December 2023)

  • IXAfrica Data Centres launched East Africa’s first and largest hyperscale AI-ready Data Centre in Nairobi to attract global hypercloud customers. Schneider Electric is underpinning the launch by providing a highly resilient power train including transformers, MV and LV switchgear, power distribution and UPS back-up, and EcoStruxure management solutions.

(Source: Schneider Electric, Press Release, July 2024)

Hyperscale Data Center Market Report Coverage and Deliverables

The "Hyperscale Data Center Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

  • Hyperscale data center market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Hyperscale data center market trends as well as market dynamics such as drivers, restraints, and key opportunities
  • Detailed PEST and SWOT analysis
  • Hyperscale data center market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
  • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the hyperscale data center market
  • Detailed company profiles
Report Coverage

Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered

Segment Covered

Solution, End User, and Vertical

Regional Scope

Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope

Country Scope

This text is related
to country scope.

Frequently Asked Questions


What is the incremental growth of the hyperscale data center market during the forecast period?

The incremental growth expected to be recorded for the hyperscale data center market during the forecast period is US$ 272.42 billion.

What are the driving factors impacting the hyperscale data center market?

The advent of IoT, big data, machine learning, and AI and the increase in data traffic are the major factors that propel the hyperscale data center market.

What are the future trends of the hyperscale data center market?

Increasing demand for sustainable hyperscale data centers is expected to play a significant role in the hyperscale data center market in the coming years.

What is the estimated market size for the hyperscale data center market in 2023?

The hyperscale data center market was estimated to be US$ 80.45 billion in 2023 and is expected to grow at a CAGR of 20.4 % during the forecast period 2023 - 2031.

Which country holds the major market share of the global hyperscale data center market?

The US held the largest hyperscale data center market share in 2023.

Which are the key players holding the major market share of the hyperscale data center market?

The key players holding majority shares in the hyperscale data center market are Cisco Systems Inc, Dell Inc, International Business Machines Corp, Intel Corporation, and Hewlett Packard Enterprise Development LP.

Which is the fastest growing regional market?

Asia Pacific is anticipated to grow with the highest CAGR over the forecast period.

What will be the market size for the hyperscale data center market by 2031?

The hyperscale data center market is expected to reach US$ 355.87 billion by 2031.

The List of Companies - Hyperscale Data Centre Market

  1. ABB Ltd
  2. Dell Technologies Inc
  3. EdgeConnex Inc.
  4. Cisco Systems Inc
  5. International Business Machines Corp
  6. Fujitsu Ltd
  7. Hewlett Packard Enterprise Development LP
  8. Intel Corp
  9. Juniper Networks Inc
  10. Schneider Electric SE

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