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More than $190 Billion Investment Opportunities in the Global Hyperscale Data Center Market in 2028, 7118 MW Power Capacity to be Added in the Next 6 Years - Arizton

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Arizton Advisory & Intelligence

24 Jan, 2024, 17:50 GMT

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CHICAGO, Jan. 24, 2024 /PRNewswire/ -- According to Arizton's latest research report, the Hyperscale data center market is growing at a CAGR of 5.92% from 2022 to 2028.

To Know More, Download the Free Sample Report Now: https://www.arizton.com/request-sample/4017

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Hyperscale Data Center Market Research Report by Arizton

The hyperscale data center market is witnessing a surge in investments from companies specializing in cloud services and telecommunications. This trend can be attributed to colocation providers' and telecom firms' rapid expansion efforts as they construct more data centers in the region. Establishing strategic partnerships with leading colocation providers is essential for attracting a broader customer base. Major cloud service players, including AWS, Facebook, Google, Alibaba, Huawei, Tencent, and Microsoft, are actively setting up data centers across different geographical areas. The future is expected to see even more substantial investments from hyperscale providers, further solidifying their presence in the market.

Governments are also playing a pivotal role by making substantial investments in renewable energy generation and other critical infrastructure components to support the development of data centers. These initiatives enhance the market's overall attractiveness for potential data center investments. Furthermore, the escalating volume of data and the implementation of stringent data protection laws in various countries are driving the demand for solutions that facilitate the secure storage of personal data. This factor is anticipated to contribute significantly to the market's overall growth. In this scenario, colocation providers are well-advised to concentrate on catering to global service providers with a robust customer base, assisting them in establishing a tangible and efficient presence in the market.

Hyperscale Data Center Market Report Scope

Report Attributes

Details

Market Size (2028)

USD 196.39 Billion

Market Size (2022)

USD 139.11 Billion

CAGR by Investment (2022-2028)

5.92 %

Market Size: Area (2028)

41.95 million square feet

Market Size: Power Capacity (2028)

7118 MW

Base Year

2022

Forecast Year

2023-2028

Market Segmentation

Infrastructure, IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling System, Cooling Technique, General Construction, Tier Standards, and Geography

Geographic Analysis

North America, Latin America, Western Europe, Nordics, Central & Eastern Europe, Middle East, Africa, and APAC

The development of hyperscale data centers is being carried out nearer to cheap power resources. For instance, most of Apple's data centers are being constructed in Oregon due to the deregulation of electricity. In addition, there are promising revenue opportunities and standard procedures for deployment and disciplined project management; this will reduce the construction time required to build a data center by local subcontractors across the major cities. Data center operators usually auction data center development projects, prompting contractors to quote reduced time requirements and low development costs to complete the project. Several hyperscale data center providers prefer four layers of safety for the physical security of their facilities. A few vendors are implementing five or more layers of security due to the increasing demand for services, a major factor driving the growth of physical security. Data center infrastructure management (DCIM) and building management systems (BMS) have recently emerged as the mandatory infrastructure-monitoring solutions for data centers. For instance, Digital Realty's data centers are monitored with EnVision, a DCIM solution that facilitates heightened visibility into data center operations through a user-friendly interface offering access to historical data and predictive capabilities.

Regional Insights

The North American hyperscale data center market leads the overall data center industry growth, with early availability, innovative technologies, and investments by colocation service providers, hyperscale data center operators, enterprises, and government agencies. The region is incumbent for new technological innovations in the data center space. The significant contributors of market growth in North America are Facebook, Google, Equinix, Digital Realty, Compass Datacenters, Cologix, Vantage Data Centers, NTT Global Data Centers, QTS Realty Trust, CoreSite Realty, CyrusOne, and Switch. North America is also a leader in the global data center UPS market. Within North America, the US dominates the UPS market, followed by Canada, with redundant power backup infrastructure adoption and considerable investments in data center facilities by colocation providers, hyperscale data center operators, enterprises, and government agencies.

The US accounted for around 22% of the overall global data center investments in 2021 in terms of the number of facilities; the country is also one of the most significant contributors to the global data center power market growth. Virginia, Texas, and California are the major markets for data center operations, followed by Illinois, Georgia, Nevada, and Oregon. Canada is an upcoming market owing to the accessibility to renewable energy sources and the low power cost structure of around $0.05 per kWh. Ontario is a data center hub in Canada, followed by Montreal, with an abundant availability of renewable energy.

Key Highlights

  • In February 2022, T-Mobile, in partnership with Deutsche Telekom, launched T-IoT, a solution offering simplified global IoT connectivity for enterprises.
  • In 2022, Rogers Communications launched a new IoT solution to focus on developing smart cities & buildings in Canada.
  • Equinix approved the expansion of around 500 racks in its MT2 facility in Montreal. The facility is supposed to be operational by Q3 2023.
  • As part of its Digital Transformation Strategy, the Chilean government decided to digitalize 100% of government services in the country by 2023. Public services under the healthcare, education, and government sectors are rapidly adopting AI and IoT solutions to transform digitally.
  • The major cloud-based service providers in the country, such as AWS, Microsoft, Oracle, IBM, Tencent Cloud, Google, and Huawei Technologies, have established their presence through local partners and by colocating in the data center facilities operating in the country. For instance, Google announced its plans to open a new Sao Paulo cloud region in 2023.

Vendors Advancements and Challenges in the Data Center Market
In response to a prevailing trend, companies providing data center infrastructure services increasingly embrace environmentally sustainable and efficient solutions. Despite this positive shift, they encounter supply chain issues, leading to delays and heightened procurement costs. On the construction front, firms engaged in building data centers are grappling with a scarcity of skilled workers, prompting a greater emphasis on utilizing recycled materials for substantial projects.

In terms of strategic investments, colocation service providers are forging partnerships through mergers and joint ventures to facilitate expansion. An illustrative example is the collaboration between GDS Services and YTL to establish data centers in Malaysia. Concurrently, major global cloud providers such as AWS, Microsoft, and Google are investing substantially in large-scale data centers. This involves the construction of their facilities and leasing space from colocation providers across multiple countries. The heightened activity in this sector intensifies competition among colocation providers in the market.

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Vendors

Key Data Center IT Infrastructure Providers

  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise (HPE)
  • Huawei Technologies
  • IBM
  • Inspur

Other Prominent IT Infrastructure Providers

  • Arista Networks
  • ATOS
  • Broadcom
  • Juniper Networks
  • Lenovo
  • NetApp
  • Extreme Networks
  • Fujitsu
  • Hitachi Vantara
  • Inventec
  • Micron Technology
  • Mitac Holdings
  • NIMBUS Data
  • Oracle
  • Pivot3
  • Pure Storage
  • Quanta Cloud Technology (Quanta Computer)
  • Seagate Technology
  • Supermicro
  • Synology
  • Toshiba
  • Violin (StorCentric)
  • Western Digital
  • Wistron (WIWYNN)

Key Data Center Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Legrand
  • Rolls-Royce
  • Schneider Electric
  • STULZ
  • Vertiv

Other Data Center Support Infrastructure Providers

  • Airedale
  • Alfa Laval
  • Asetek
  • Assa Abloy
  • Bloom Energy
  • Carrier
  • Condair
  • Cormant
  • Cyber Power Systems
  • Daikin Applied
  • Data Aire
  • Delta Electronics
  • EAE
  • Enlogic
  • FNT Software
  • Generac Power Systems
  • Green Revolution Cooling (GRC)
  • HITEC Power Protection
  • Honeywell International
  • Johnson Controls
  • KOHLER
  • KyotoCooling
  • Mitsubishi Electric
  • Munters
  • Nlyte Software (Carrier)
  • Natron Energy
  • NetZoom
  • Panduit
  • Piller Power Systems
  • Riello Elettronica (Riello UPS)
  • Siemens
  • Trane (Ingersoll Rand)
  • Tripp Lite
  • Yanmar (HIMOINSA)
  • ZincFive
  • 3M

Key Data Center Contractors

  • AECOM
  • DPR Construction
  • Holder Construction
  • Jacobs
  • M+W Group (Exyte)
  • Bouygues Construction
  • Mercury

Other Data Center Contractors

  • Arup
  • Aurecon Group
  • BENTHEM CROUWEL ARCHITECTS
  • Cap Ingelec
  • Corgan
  • DAR Group
  • Deerns
  • DSCO Group
  • Edarat Group
  • Faithful+Gould
  • Fluor Corporation
  • Fortis Construction
  • Gensler
  • Gilbane Building Company
  • HDR
  • ISG
  • Kirby Group Engineering
  • KKCG Group
  • Laing O'Rourke
  • Larsen & Toubro (L&T)
  • Linesight
  • Mace
  • Morrison Hershfield
  • Mortenson
  • NTT Facilities
  • Red
  • Royal HaskoningDHV
  • Sterling and Wilson (Shapoorji Pallonji Group)
  • STO Building Group
  • Syska Hennessy Group
  • Turner Construction
  • Winthrop Engineering and Contracting

Key Data Center Investors

  • Apple
  • Amazon Web Services (AWS)
  • CyrusOne
  • Digital Realty
  • Equinix
  • Facebook (META)
  • Google
  • Keppel Data Centres
  • Microsoft
  • NTT Global Data Centers
  • ST Telemedia Global Data Centres
  • Vantage Data Centers

Other Data Center Investors

  • 21Vianet
  • Africa Data Centres
  • Bharti Airtel (Nxtra Data)
  • AirTrunk Operating
  • Aligned
  • atNorth (Partners Group)
  • pl
  • Big Data Exchange
  • Bridge Data Centres
  • Canberra Data Centers
  • Chayora
  • Chindata
  • CloudHQ
  • ClusterPower
  • Cologix
  • Compass Datacenters
  • COPT Data Center Solutions
  • CoreSite Realty
  • DataBank
  • DATA4
  • DigiPlex (IPI Partners)
  • EdgeConneX
  • Etisalat
  • Flexential
  • GDS Services
  • Global Switch
  • Green Mountain
  • Gulf Data Hub
  • HostDime
  • InterNexa
  • Iron Mountain
  • IXAfrica
  • IXcellerate
  • Moro Hub
  • NEXTDC
  • ODATA
  • Ooredoo
  • Orange Business Services
  • Paratus Namibia
  • QTS Realty Trust
  • Raxio Group
  • Rostelecom Data Centers
  • Scala Data Centers
  • Sify Technologies
  • SUNeVision (iAdvantage)
  • Tenglong Holdings Group
  • Telecom Egypt
  • T5 Data Centers
  • Turkcell
  • Wingu
  • Yondr
  • Yotta Infrastructure Solutions

New Data Center Investors

  • AdaniConneX
  • Cirrus Data Solutions
  • Data Center First
  • Hickory Group
  • Global Technical Realty
  • Kevlinx
  • Novva
  • Quantum Loophole
  • Stratus DC Management

Market Segmentation

Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

IT Infrastructure

  • Server Infrastructure
  • Storage Infrastructure
  • Network Infrastructure

Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • PDUs
  • Other Electrical Infrastructure

Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Cooling System

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units

Cooling Technique

  • Air-based Cooling Technique
  • Liquid-based Cooling Technique

General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM/BMS Solutions

Tier Standards

  • Tier I & Tier II
  • Tier III
  • Tier IV

Geography

  • North America
    • The US
    • Canada
  • Latin America
    • Chile
    • Brazil
    • Mexico
  • Western Europe
    • The UK
    • Germany
    • France
    • Netherlands
    • Ireland
    • Spain
    • Other Western European Countries
  • Nordics
    • Denmark
    • Sweden
    • Norway
    • Finland
  • Central & Eastern Europe
    • Poland
    • Other Central & Eastern European Countries
  • Middle East
    • The UAE
    • Saudi Arabia
    • Israel
  • Africa
    • South Africa
    • The Other African Countries
  • APAC
    • China
    • Hong Kong
    • Australia
    • New Zealand
    • India
    • Japan
    • South Korea
    • Singapore
    • Malaysia
    • Thailand
    • Indonesia
    • Philippines

Check Out Detailed TOC @ https://www.arizton.com/market-reports/hyperscale-data-center-market-report?details=tableOfContents

Key Questions Answered in the Report:

How big is the hyperscale data center market?

What is the growth rate of the global hyperscale data center market?

What is the estimated market size in terms of area in the global hyperscale data center market by 2028?

Who are the key IT infrastructure providers in the global hyperscale data center market?

How many MW of power capacity is expected to reach the global hyperscale data center market by 2028?

Check Out Some of the Top Selling Research Reports:   

Data Center Colocation Market - Global Outlook & Forecast 2022-2027

Data Center Power Market - Global Outlook & Forecast 2023-2028

Data Center Cooling Market - Global Outlook & Forecast 2023-2028

Data Center Market - Global Outlook & Forecast 2023-2028

About Arizton Data Center Capabilities 

Arizton's team of principal consultants and analysts work towards publishing extensive secondary and primary research that is credible, resourceful, and data driven. With over 5 years of experience, Arizton has helped several Fortune 500 companies with data-driven insights that enabled them to expand their businesses to niche regions, added over a billion dollars in revenues, and effective go-to-market strategies. We offer various product portfolios to meet the client's requirements, which align with their key business strategies and identify high-value growth avenues. 

Exhaustive syndicated reports, databases, country-wise market analysis, & customized consulting projects are published by our team of exuberant and well-experienced analysts who possess exemplary skills in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research. Subscribe to our exhaustive portfolios to gain access to premium research reports at competitive prices. Partner with Arizton for your next strategic business decision and gain a competitive advantage with real-time, data-driven research. 

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