Hyperscale Data Center Market Size and Growth | 2030

The hyperscale data center market size is expected to grow from US$ 80.45 billion in 2022 to US$ 355.87 billion by 2030; the market is estimated to record a CAGR of 20.4% from 2022 to 2030.

Analyst Perspective:

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 Report 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

Market Size Value in	US$ 80.45 billion in 2022
Market Size Value by	US$ 355.87 billion by 2030
Growth rate	CAGR of 20.4% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Market Driver:

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.

Segmental Analysis

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 2022. Further, the networking segment is anticipated to register the highest CAGR during 2022–2030. As per the hyperscale data center market forecast, the demand for hyperscale data centers is increasing worldwide with the decreasing cost of storage facilities and simplification of access to large data volumes.

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Hyperscale Data Center Market Analysis: Regional Overview

North America held the largest hyperscale data center market share in 2022. 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.

Key Player Analysis:

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, and Schneider Electric SE are the key players profiled in the hyperscale data center market report.

Recent Developments: 

The hyperscale data center market players highly adopt inorganic and organic strategies. As per company press releases, below are a few key developments:

• In December 2023, 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 on two continents. The developments are expected to support approximately 500 megawatts (MW) of total IT load upon full build out of all campuses.