Hyperscale Data Center Market Size was valued at USD 18.0 billion in 2022. The Hyperscale Data Center market industry is projected to grow from USD 22.86 Billion in 2023 to USD 95.9 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 27.0% during the forecast period (2023 - 2030). In recent years, hyperscale data centers have gained significant power to cater to the growing computing and storage demands of high-end applications. This has led to increased complexity in data centers as businesses continue to rely heavily on critical applications. As the popularity of the web, e-commerce, social media, big data, computing, online gaming hosting, and Hadoop continues to rise, there is a greater need to enhance infrastructure to improve application speed, server density, and energy efficiency. Such market drivers enhances the market growth.
Figure 1: Hyperscale Data Center Market Size, 2023-2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increasing need for data storage and processing capabilities is one of the major drivers of the hyperscale data center market CAGR. As businesses generate and collect more data than ever before, there is a growing need for large-scale data storage and processing capabilities to manage this data effectively. Hyperscale data centers are designed to provide the high-performance computing power and storage capacity needed to handle massive amounts of data quickly and efficiently.
In recent years, the volume of data generated by businesses and individuals has increased exponentially, thanks to the growing popularity of IoT devices, social media platforms, e-commerce, and big data analytics. This has created a need for new and innovative solutions to store, process, and manage this data. Hyperscale data centers are designed to meet this need by providing scalable and flexible infrastructure that can handle large volumes of data in real-time. Data was once thought to be the foundation of an emerging economy. Almost all businesses use more data than they did previously, and they will almost certainly consume even more data in the future. This massive amount of data must be stored and accessed from somewhere. Global IP data traffic increased from 96,054 petabytes per month in 2016 to 150,910 petabytes per month in 2018, and it reached 278,108 petabytes per month last year, according to Cisco Systems.
The demand for hyperscale data centers is also being driven by the increasing adoption of cloud computing services. Cloud computing providers use hyperscale data centers to offer customers on-demand access to computing resources, storage, and applications. This allows businesses to scale their IT infrastructure as needed, without the need for large capital investments in hardware and software. Thus, these factors are driving the Hyperscale Data Center market revenue.
The global Hyperscale Data Center market segmentation, based on Solution includes Storage, Server, and Software. The server segment holds the largest market share in the global hyperscale data center market. This is because servers are the primary computing resource in a data center, and hyperscale data centers typically contain a large number of servers to support the high-performance computing requirements of large-scale data processing.
The global Hyperscale Data Center market segmentation, based on Type, includes Cloud Providers and Enterprises. The cloud providers segment holds the largest market share in the global hyperscale data center market. This is because cloud providers are the primary users and buyers of hyperscale data centers, as they require large-scale infrastructure to provide cloud services to businesses and individuals.
Figure 2: Global Hyperscale Data Center Market, by Type, 2022 & 2030 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The global Hyperscale Data Center market data, based on Vertical, includes BFSI, Healthcare, and IT & Telecommunication. The IT & Telecommunication segment holds the largest market share in the global hyperscale data center market. This is because IT & Telecommunication companies generate and manage large amounts of data on a daily basis, and they require highly efficient and scalable data center infrastructure to handle their computing and storage needs.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America holds the largest share of the hyperscale data center market, with the United States being the major contributor to the region's growth. The region's dominance can be attributed to the presence of major cloud providers, such as Amazon Web Services, Microsoft, and Google, which have established their hyperscale data centers in the region. The region also has a mature IT infrastructure, a large number of data-intensive businesses, and favorable government regulations that promote the growth of data centers.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: GLOBAL HYPERSCALE DATA CENTER MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Hyperscale Data Center market accounts for the second-largest market share. The growth of the hyperscale data center market in Europe is driven by the increasing adoption of cloud services and the need for high-performance computing and storage infrastructure. The region also has strict data protection regulations that require businesses to store their data within the European Union, further driving the growth of the hyperscale data center market. Further, the German Hyperscale Data Center market held the largest market share, and the UK Hyperscale Data Center market was the fastest growing market in the European region
The Asia-Pacific Hyperscale Data Center Market is the fastest-growing market for hyperscale data centers, driven by the increasing demand for cloud services, big data analytics, and the adoption of new technologies such as AI and IoT. The region has a large population, a growing economy, and a rapidly expanding digital landscape, which is driving the growth of the hyperscale data center market. China, Japan, and India are the major contributors to the market growth in the Asia-Pacific region. Moreover, China’s Hyperscale Data Center market held the largest market share, and the Indian Hyperscale Data Center market was the fastest growing market in the Asia-Pacific region.
In order to drive further growth in the hyperscale data center market, the leading market players are heavily investing in research and development to expand their product portfolios. These companies are also engaging in various market developments to expand their global reach, including launching new products, entering into contracts, merging with or acquiring other organizations, making higher investments, and collaborating with other companies.
To remain competitive and thrive in an increasingly crowded market, the hyperscale data center industry must focus on providing cost-effective solutions to customers. This means that companies must continue to innovate and find ways to increase efficiency and reduce costs, while still maintaining high levels of performance and reliability.
In recent years, the Hyperscale Data Center industry has offered some of the most significant advantages to data storage. Major players in the Hyperscale Data Center market, including Cisco Systems Inc. (US), IBM Corporation (US), Huawei Technologies Co. Ltd. (China), and Others.
Cisco Systems Inc. is a multinational technology company that provides a wide range of networking and communication products and services. The company was founded in 1984 and is headquartered in San Jose, California, USA. Cisco has a global presence, with operations in over 100 countries and more than 75,000 employees. Cisco is a leader in networking technologies, providing solutions that enable businesses to connect and collaborate in a secure and reliable way. The company's products and services include networking hardware, such as routers, switches, and firewalls, as well as software and cloud-based services, such as network management tools and cybersecurity solutions.
IBM Corporation is a global technology company that provides hardware, software, and services solutions. The company offers a range of services, including cloud computing, big data and analytics, artificial intelligence, and cybersecurity. IBM also provides server and storage systems designed to handle the high demands of hyperscale data centers. The company has a significant presence in the technology industry, with operations in over 100 countries and more than 350,000 employees. IBM's solutions and services are designed to help businesses maximize the value of their IT investments and to enable them to connect and collaborate in a secure and efficient way.
In October 2022, Microsoft Corporation plans to develop a big hyperscale data center in Pune as part of its India-wide multi-city data center strategy. As a part of this development, the company has acquired a 25-acre plot of land in the Pimpri-Waghere locality of the city through an agreement with Finolex Industries for transferring a long-term lease of around INR 329 crore (USD 40.2 million), and this is where they intend to set up the data center.
In 2022, GDS Services joined hands with YTL to construct data centers in Malaysia. The Hyperscale Data Center market is being built by major global cloud providers, including AWS, Microsoft, and Google. These providers establish their own facilities or rent space from colocation providers located in different countries. This increase in hyperscale activity is increasing competition between colocation providers.
GPU giant Nvidia announced it has launched a new business unit that is developing custom chips specifically for cloud hyperscalers. Nvidia also focuses on automotive, telecoms, and video game customers. According to reports, it is already working with wireless communication equipment manufacturer Ericsson on a wireless chip that builds on GPU-based technology.
OVHcloud, which is an IBM Europe-based cloud provider, and Atempo Group – a data management firm – said they were developing a storage-as-a-service solution for European-based DCs last January 2021 but globally available within months. The Novva data center startup was founded when CIM Group – a real estate investment company – chipped in USD 1 billion in July 2020; the construction of one large campus site that will host “Novva ONE” has already commenced in Utah.
Dell leads the Hyperscale Data Center Market. For years now, Dell has continually provided dependable, scalable infrastructure solutions for data centers. Recently, the firm’s market share expanded significantly due to a diverse product mix as well as larger customer base growth; Dell’s sales in the 2022 fiscal year were approximately billions of dollars.
November 2022: BDx, Indosat Ooredoo Hutchison, and PT Aplikanusa Lintasarta have announced their intention to construct a new data center complex, CGK5, in Karawang, West Java, Indonesia. The 100MW data center campus will cover an area of 12 acres and will be part of the company's third availability zone. This project is a significant part of BDx's platform and represents the company's 11th data center in the Asia-Pacific region. With over USD 1 billion committed to investment funding, BDx has the capacity for scaled innovation in challenging markets. The project is expected to contribute to the continued growth of BDx's development across the region.
June 2022: Equinix Inc., a global leader in digital infrastructure, and PGIM Real Estate, the real estate investment and financing arm of Prudential Financial's global asset management business, have announced the opening of SY9x, the xScale data center located in Sydney. The launch of this data center is a result of the successful completion of the joint venture between the two companies, which amounted to USD 575 million. The opening of SY9x represents a significant milestone for the partnership and the expansion of their digital infrastructure services in the Asia-Pacific region.
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 18.0 billion |
| Market Size 2023 | USD 22.86 billion |
| Market Size 2030 | USD 95.9 billion |
| Compound Annual Growth Rate (CAGR) | 27.0% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Solution, Type, Vertical, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Cisco Systems Inc. (US), IBM Corporation (US), Huawei Technologies Co. Ltd. (China), Ericsson (Sweden), Lenovo Group Ltd. (China), Cavium (US), Quanta Computer Inc. (Taiwan), Broadcom Ltd. (US), Intel Corporation (US), and Others. |
| Key Market Opportunities | Advancements in server, storage, and networking technologies. |
| Key Market Dynamics | Growing demand for cloud computing services. Increasing adoption of big data analytics and artificial intelligence (AI).Increasing need for data storage and processing capabilities. |
Frequently Asked Questions (FAQ) :
The global Hyperscale Data Center market size was valued at USD 18.0 Billion in 2022.
The global market is projected to grow at a CAGR of 27.0% during the forecast period, 2023-2030.
North America had the largest share in the global market
The key players in the market are Cisco Systems Inc. (US), IBM Corporation (US), Huawei Technologies Co. Ltd. (China), and Others.
The Server category dominated the market in 2022.
The Cloud Providers had the largest share in the global market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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