by Hyperscale data centers consist of large-scale computing facilities that are designed to service numerous servers with optimal physical security and reliability. Hyperscale data centers provide cost-effective data management solutions by leveraging advanced technologies such as virtualization and high-density servers. With increasing investments in digitalization and cloud computing across various industries, hyperscale data centers play a critical role in efficiently managing exabytes of data generated daily. The rapidly growing popularity of cloud platforms such as Microsoft Azure, Amazon Web Services, and Google Cloud is fueling the demand for hyperscale data centers worldwide as they provide on-demand access to flexible IT resources and capabilities.
The global Hyperscale Data Center Market is estimated to be valued at US$ 87.87 Bn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
The use of artificial intelligence and machine learning technologies is emerging as one of the prominent trends in the hyperscale data center market. AI-enabled systems require high computing capabilities to support complex operations such as data analytics, natural language processing, and predictive analysis. Hyperscale data centers are being equipped with AI accelerators and graph processors to efficiently execute AI workloads at scale. For example, in 2020, Microsoft announced new Azure AI services powered by Nvidia GPUs to accelerate AI research and development. Such technological advancements are expected to boost the demand for hyperscale data centers in the coming years.
Porter’s Analysis
Threat of new entrants: The requirements for setting up large hyperscale data centers require huge capital investments, which acts as a barrier for new entrants.
Bargaining power of buyers: Large public cloud service providers and internet companies have significant bargaining power as buyers due to the large volume of servers and infrastructure purchased.
Bargaging power of suppliers: Key suppliers of infrastructure equipment have some bargaining power due to their technological expertise and capabilities.
Threat of new substitutes: There is no direct substitute for large-scale data center facilities. However, edge computing is emerging as a complementary technology.
Competitive rivalry: The hyperscale data center market is dominated by major cloud service providers who compete intensely on performance benchmarks, connectivity, and pricing.
Key Takeaways
The global Hyperscale Data Center Market is expected to witness high growth.
Regional analysis: The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to increased demand for cloud services from major economies like China and India. Hyperscale data center operators are making significant investments in this region to capture market opportunities.
Key players operating in the Hyperscale Data Center market are India Systems Pvt. Ltd., Enkay Technologies, Budget Signs, Truknox Technologies, Intellicon, BH Enterprizes, BenQ Corporation, Sony Corporation, Sharp Corporation, Panasonic Corporation, LG Electronics Inc., and Samsung Electronics Co. Ltd. The key players are focused on expanding their data center footprint and enhancing their service capabilities to cater to the rising demand for digital services.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
