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. As various organizations are moving their IT infrastructure to the cloud, they often require facilities to provide additional space, power, and cooling for servers, storage, and networking equipment, which compels them to adopt data 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. It also helps save overall costs associated with establishing their own data center.
With the growing adoption of cloud-based technologies, key hyperscale data center market players are establishing new units for their businesses to make the cloud and digital infrastructure more accessible to customers. 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 in the country is attracting more customers to leverage the services of advanced technologies such as cloud-based services. Thus, the ongoing proliferation of cloud-based services bolsters the hyperscale data center market growth worldwide.
Germany Holds Largest Share in European Hyperscale Data Center Market
According to the Hyperscale Data Center Market forecast, the market in Germany is expected to grow significantly during the forecasted period owing to the rise in digitization, high IoT demand, 5G implementation, and technology acceptance. Big data analytics solutions are adopted to manage as well as analyze the high-volume data generated across various end-user industries, including manufacturing and engineering, consumer goods and retail, and BFSI. While enterprises and industries are significant contributors to IoT spending in the country, the automotive and manufacturing sectors lead the country’s IoT adoption rate, contributing significantly to the hyperscale data center market growth in Germany.
Hyperscale Data Center Market Analysis: Segmental Overview
Based on solution, the hyperscale data center market is divided into storage, networking, server, security, and others. The storage segment held the largest market share in 2022. The networking segment is anticipated to record the highest CAGR during 2022–2030. In terms of end user, the market is categorized into enterprises, colocation providers, and cloud providers. The enterprises segment held the larger hyperscale data center market share in 2022, whereas the cloud providers segment is anticipated to record a higher CAGR during 2022–2030. In terms of vertical, the market is categorized into BFSI, telecom and IT, media and entertainment, government and public, and others. The BFSI segment accounted for the largest share of the market in 2022, whereas the telecom and IT segment is anticipated to register the highest CAGR during 2022–2030.
Hyperscale Data Center Market: Competitive Landscape and Key Developments
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 among the key players profiled in the hyperscale data center market report. Several other major players were also studied and analyzed to get a holistic view of the market and its ecosystem. The report provides detailed market insights to help major players strategize their growth. As per company press releases, below are a few key developments:
- In January 2024, the Mississippi governor announced that they are seeking approval for a US$ 10 billion investment in two hyperscale data center developments in Canton and wider Madison County. The development will see two hyperscale data centers developed on two industrial parks in Madison County, one of which is in Canton. The data center projects are also anticipated to create around 1,000 jobs with a salary of at least 125% of the average state wage.
- In June 2023, NTT Ltd., a leading global IT infrastructure and services company and market leader in the Indian data center industry, announced the launch of its new hyperscale data center campus, Chennai 2, and the arrival of its subsea cable system – MIST in the city. The Chennai 2 campus is located in Ambattur, spread across 6 acres, and is a state-of-the-art project with a total planned capacity of 34.8 MW critical IT load from 2 data center buildings.
- In October 2022, Yotta Infrastructure, a new-age digital transformation service provider, unveiled North India’s first hyperscale data center, Yotta D1, in a grand inauguration ceremony at its Greater Noida Data Center Park. Yotta D1, a part of the Yotta Greater Noida Data Center Park, is strategically located near the key business hubs of India’s National Capital Region, thus providing an impetus to the region’s digital economy. The data center spans 3,00,000 sq. ft. across the ground plus 7 floors and offers an IT load capacity of 28.8 MW. Yotta D1 can house 5,000 racks across seven server floors and offers fail-safe, 48-hour power backup on full load.