Growing digitalization across the world, the increasing adoption of cloud, and enterprises shifting from on-premises to colocation and managed data centers have been some of the major drivers for the growth of hyperscale data centers.
With the increasing adoption of cloud-based services including public, hybrid, and private cloud as a result of COVID-19, cloud service providers are expanding their presence in many countries, either with self-built data centers, or hosting their data in existing colocation facilities in the country.
The development of colocation facilities is also increasing, with both retail and wholesale colocation expected to grow in coming years. Cloud, IT, BSFI, and healthcare sectors are some of the biggest colocation demand drivers.
In order to attract hyperscale investment, many state and local governments provide investment and sales tax incentives, with incentives focused on effective data center operations and renewable energy procurement likely to increase in coming years.
Data localization regulations for the storage and processing of consumer data in countries is also fueling the demand for hyperscale investment. The GDPR in adopted by the European Union, The Federal Act on Data Protection (FADP) in Switzerland, and the Government Regulation 82 (GR82) in Indonesia are some examples of such regulations.
Many hyperscale operators, such as Microsoft, AWS, Google, Digital Realty, and Equinix, among others, are shifting to the procurement of renewable energy to power their data centers. Many countries also have renewable energy targets; for e.g., Ireland aims to generate 55% of its energy through renewable energy sources by 2030.
Market Size & Forecast by Revenue | 2020−2026
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, and geography
Competitive Landscape – 21 IT infrastructure providers, 25 support infrastructure providers, 29 construction contractors, 10 key investors, 26 prominent data center investors, and 11 new entrants
The market for server infrastructure has witnessed strong growth in the past two years. The competition between branded and ODM server suppliers will continue because multiple enterprises opt for server infrastructure based on open community designs (OCP). Server systems based on x86 architecture dominated the market with about 85% of the hyperscale data center market share.
UPS systems are widely adopted to provide backup power for cooling systems installed in the facility. The adoption of lithium-ion batteries is likely to increase during the forecast period. For instance, GPX Global Systems' data center facilities in India are equipped with Lithium-ion batteries from Eaton.
In data center projects, the investment in cooling systems is expected to be 15–20% of the overall cost, depending on the facility design and IT load. The facilities in Southeast Asia, China, India, Australia, the Middle East, and Africa are likely to prefer air-cooled chillers or chilled water systems or a combination of both air and water-based cooling techniques.
Hyperscale Data Center Market by IT Infrastructure
Hyperscale Data Center Market by Electrical Infrastructure
Transfer Switches & Switchgears
Other Electrical Infrastructure
Hyperscale Data Center Market by Mechanical Infrastructure
Other Mechanical Infrastructure
Hyperscale Data Center Market by Cooling System
CRAC & CRAH Units
Cooling Towers, Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
Hyperscale Data Center Market by Cooling Technique
Air-Based Cooling Technique
Liquid-Based Cooling Technique
Hyperscale Data Center Market by General Construction
Core & Shell Development
Installation & Commissioning Services
Building & Engineering Design
Hyperscale Data Center Market – Dynamics
The data center industry has been one of the main consumers of energy generated across the world, consuming 1−2% of the globally available electricity. With the rapid growth in data generation and internet penetration, energy consumption in data centers is likely to grow during the forecast period. The increasing data center power consumption and the need to decrease carbon footprint have prompted many data center service providers to purchase clean, renewable energy sources to power their current and new facilities. Around 87 TWh is the data center energy demand by hyperscale data centers across the globe by 2021. In addition, the energy demand by servers is around 110 TWh, followed by support infrastructure and storage with 60 TWh and 20 TWh, respectively. The increasing data center power consumption and the need to decrease carbon footprint have prompted many data center service providers to purchase clean, renewable energy sources to power their current and new facilities worldwide. Hyperscale data center providers such as Microsoft, Facebook, Apple, Google, and Amazon Web Services (AWS) are the major investors in renewable energy initiatives.
Key Drivers and Trends fueling Market Growth:
Software-Defined Power to Monitor & Automate Power Infrastructure
AI Boosts Liquid Immersion & Direct-To-Chip Cooling Adoption
5G Deployment & Hyperscale Data Centers
Rising Investment in Hyperscale Data Centers
Hyperscale Data Center Market – Geography
The North American hyperscale data center market leads the global hyperscale data center growth, with around 40% share of the total number of hyperscale projects in 2020. With the early availability and adoption of innovative technology and investments from hyperscale data center operators, enterprises, and government agencies, the region is a key driver and acts as an incumbent for any new technological innovation in the data center arena. Virginia and Texas are the major markets for hyperscale data center operations, followed by Oregon, Ohio, Georgia, and Utah. Canada is an upcoming market owing to the accessibility to renewable energy sources and low power costs of around $0.05 per kWh. Ontario is a data center hub in Canada, followed by Montreal, due to the abundant availability of renewable energy.
Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.