February 16, 2025
Hyperscale Data Center Market
Ict

Server Hardware Segment Is The Largest Segment Driving The Growth Of Hyperscale Data Center Market

The global Hyperscale Data Center Market is estimated to be valued at US$ 87.87 Billion 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 with more than 1000 servers. They offer advantages such as lower total cost of ownership, energy efficiency, scalability, flexibility, and improved infrastructure. The need for cloud-based applications and services is driving demand for hyperscale data centers.

Market key trends:

One of the major trends in the hyperscale data center market is increasing adoption of renewable energy sources. Data center operators are focusing on utilizing renewable energy like solar and wind to power their facilities in order to reduce carbon footprint and energy costs. For example, Facebook aims to power its data centers through renewable energy completely by 2030. Another key trend is the growing investment in artificial intelligence and machine learning workloads which require massive computing power. This is fueling demand for hyperscale infrastructure and capacity expansion.

SWOT Analysis

Strength: Hyperscale data centers provide massive data storage capabilities, fast processing power and redundancy which enables seamless scaling up or down of infrastructure as per demand. These data centers offer cost benefits due to economies of scale.
Weakness: Setting up hyperscale data centers requires huge capital investments and considerable time for development. Ensuring reliability and security of infrastructure and data across geographically distributed locations is challenging.
Opportunity: Increasing digitization across industry verticals is driving the need for expanded data storage, faster connectivity and robust cloud infrastructure. Rising adoption of advanced technologies like AI, ML, IoT is propelling the demand for hyperscale infrastructure.
Threats: Constraints around power infrastructure, land acquisition and regulatory clearances pose security threats. Dependence on limited global hyperscale operators increases vulnerability.

Key Takeaways

The Global Hyperscale Data Center Market Size  is expected to witness high growth, exhibiting CAGR of 30% over the forecast period, due to increasing demand for scalable and robust cloud infrastructure driven by digitization and prevalent use of advanced technologies.

Regional analysis: North America dominates the Hyperscale Data Center market currently. However, Asia Pacific region is expected to grow at the fastest rate owing to increasing investments by hyperscale operators in developing megatech hub locations such as India, China and Singapore to cater to the rising number of digital consumers.

Key players operating in the Hyperscale Data Center market are Aecom, DPR Construction, Holder Construction, Jacobs, Bouygues Construction, Mercury, Arup, and Benthem Crouwel Architects. These companies strategize to expand hyperscale infrastructure globally through joint venture partnerships and mergers and acquisitions in order to strengthen their presence across regions. They also focus on greenfield development and retrofitting of existing facilities in a sustainable and innovative manner to reduce power costs and environmental footprint.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

Ravina Pandya

Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

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