In-depth analysis and data-driven insights on the impact of COVID-19 included in this global hyperscale data center market report.
The hyperscale data center market is expected to grow at a CAGR of over 2% during the period 2019–2025.
Key Highlights Offered in the Report:
- Digitalization and data regulation are aiding in exponential expansion activities by global hyperscale cloud service providers.
- The market witnessed around 115 new hyperscale facilities through projects opened and under construction in 2019. These projects are built with a minimum power capacity of 15 MW.
- The US leads the hyperscale data center market and will bring $30 billion revenue opportunities for construction contractors and sub-contracts between 2020-2025.
- In APAC, China and Hong Kong contribute to around 45% of the investment, whereas India and Indonesia are the fastest growing hyperscale markets in the region.
- OCP-Ready colocation facilities to facilitate ODM infrastructure adoption among enterprise and government data center operators.
Key Offerings:
- Market Size & Forecast by Revenue | 2019−2025
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Market Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and geography
- Competitive Landscape – List of 21 IT infrastructure providers, 25 construction service providers, 25 support infrastructure providers, 26 data center investors, and 12 new entrant data center investors
The global hyperscale data center market is primarily dominated by colocation, internet, and cloud data center service providers. There are also many cloud-based services providers that depend on the construction of facilities by colocation providers to colocate space on a wholesale basis. This will aid cloud providers operating worldwide to establish cloud regions, thereby serving customers quickly and efficiently. In terms of construction, hyperscale operators are investing high capital in the market annually. Also, colocation providers are building hyperscale facilities spanning over 100,000 square feet with a rack power density of up to 50 kW.
The rapid increase in the spread of COVID-19 in March 2020, across Asian and European countries and the US will result in production and procurement delays till Q2 2020. The construction projects that were expected to be completed between March to June 2020, might be postponed by up to 3 months, depending on the return of the construction workforce to full strength and resumption of full-scale supply chain processes. The pandemic might affect new hyperscale projects that are likely to get underway in the Q2 2020, resulting a declining market scenario for 2020.
The following factors are likely to contribute to the growth of the hyperscale data center market during the forecast period:
- AI Boosts Liquid Immersion & Direct-to-Chip Cooling Adoption
- Increasing Deployment of Software-Defined Data Center
- Increased Adoption of OCPs & Hyperscale-specific Infrastructure
- Increasing Penetration of 200GbE & 400GbE Switch Ports
The study considers the present scenario of the hyperscale data center market and its market dynamics for the period 2019−2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The study offers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent ones operating in the market.
Hyperscale Data Center Market Segmentation
The global hyperscale data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and geography. The demand for servers suitable for cloud computing environments will continue to grow as service providers expand their presence globally. There will be an increase in demand for servers with multicore processors, and memory will grow as the average number of virtual machines per physical server continues to rise. The US market recorded a growth of around 302% in the server market revenue with the shipment growing at around 40% in 2029. The increase in number of OCP-Ready facility will increase the procurement of ODM infrastructure among enterprise hyperscale data center operators.
Innovations in the OCP community have resulted in the launch of 12VDC UPS. These UPS systems constitute a rack architecture, where one UPS rack supports 6 IT racks in the hyperscale data center environment. The procurement of lithium-ion UPS systems will continue to grow among hyperscale data center operators to reduce the OPEX through low maintenance.
The use of indirect evaporative coolers and air/water-side economizers will continue to grow in countries that experience cold climatic conditions for a minimum of 5,000 hours per year. Data centers in Southeast Asia, India, the Middle East, and Africa are likely to prefer chilled water systems or a combination of both air and water-based cooling techniques. The use of dual water feeds in facilities with on-site water treatment plants is gaining popularity across hyperscale deployments.
Data centers established in South Western US are incorporated with energy-efficient water-based cooling systems. The on-site water treatment plants that save a minimum of 30% of the water consumed.
In the US, a majority of states provide tax incentives that includes sales tax, property tax and job-based tax incentives. To attract hyperscale investment, several states are likely to offer tax incentives during the forecast period. In Western Europe, the growing demand for data centers has increased revenue opportunities for multiple contractors and sub-contractors. However, a major challenge for several contractors in the region is the lack of skilled workforces to manage multiple hyperscale data center projects.
Most projects are built in collaboration with global data center construction contractors and local sub-contractors. China will lead greenfield data center construction compared to Hong Kong, where brownfield developments is popular due to the space shortage during the forecast period.
Segmentation by IT Infrastructure
- Servers
- Storage
- Network
Segmentation by Electrical Infrastructure
- UPS
- Generators
- Transfer Switches & Switchgears
- Rack PDUs
- Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Segmentation by General Construction
- Building Development
- Installation & Commissioning Services
- Building Designs
- Physical Security
- DCIM
Insights by Geography
The major drivers for the hyperscale data center market growth and demand include rapid advancements in IoT devices, condensed cost of ownership, and the growing number of applications across several sectors. The US is the major market in the North America that is witnessing high growth in the hyperscale data center market. In North America, the development of hyperscale data centers is of Tier III and Tier IV standards.
North America has always been a strong driver for the data center construction market. Multiple hyperscale facilities are being powered by renewable energy sources to overcome issues with power consumption and carbon emission.
In Europe, Germany continued to dominate the market, with strong contribution from the UK, Denmark, Russia, the Netherlands, Belgium, and Italy. APAC is expected to be the fastest growing market for hyperscale data center with high contribution from China, India, Australia, Singapore, Hong Kong, and India. The market has witnessed the entry of multiple new entrants in the colocation space with plans to build wholesale colocation spaces for hyperscale operators.
Segmentation by Geography
- Americas
- US
- Canada
- Latin America
- EMEA
- Nordic
- MEA
- Western Europe
- APAC
- China & Hong Kong
- Australia & New Zealand
- India
- Southeast Asia
- Rest of APAC
Insights by Vendors
The competition among cloud service providers to establish multiple cloud regions and increase the customer base for service offerings is driving the investments in hyperscale data center construction. Also, colocation providers are investing significantly in the hyperscale development, which is increasing the competition among themselves along with several new entrants to the market. The infrastructure data center suppliers in the market is becoming increasingly competitive YOY. Infrastructure suppliers are innovating their product portfolio to increase their market shares.
Prominent IT Infrastructure Providers
- Arista
- Atos
- Broadcom
- Cisco
- Dell Technologies
- Extreme Networks
- Hewlett Packard Enterprise (HPE)
- Hitachi Vantara
- Huawei
- IBM
- Inspur Group
- Inventec
- Juniper
- Lenovo
- NEC
- NetApp
- Oracle
- Pure Storage
- Quanta Cloud Technology (Quanta Computer)
- Super Micro Computer
- Wistron (Wiwynn)
Prominent Support Infrastructure Providers
- ABB
- Alfa Laval
- Airedale Air Conditioning
- Asetek
- Bosch Security Systems (Robert Bosch)
- Caterpillar
- Cummins
- Condair Group
- Delta Group
- Eaton
- Euro-Diesel (KINOLT)
- Green Revolution Cooling (GRC)
- Hitech Power Protection
- KOHLER (SDMO)
- Legrand
- Nlyte Software
- Nortek Air Solutions
- Mitsubishi Electric Corporation
- MTU On Site Energy
- Piller Power Systems
- Rittal
- Schneider Electric
- STULZ
- Trane
- Vertiv
Prominent Construction Contractors
- AECOM
- Arup Group
- Bouygues
- Cap Ingelec
- Corgan
- DPR Construction
- Fluor Corporation
- Fortis Construction
- Gensler
- Gilbane Building
- HDR Architecture
- Holder Construction
- ISG
- Jacobs Engineering Group
- Jones Engineering Group
- Linesight
- Mace Group
- Mercury Engineering
- Morrison Hershfield
- Mortenson
- M+W Group (Exyte)
- Red-Engineering
- Structure Tone
- Syska Hennessy Group
- Winthrop
Prominent Data Center Investors
- Apple
- AWS (Amazon Web Services)
- Aligned Energy
- Ascenty
- Aruba SpA
- Bridge Data Centers
- CyrusOne
- Colt Data Centre Services (COLT DCS)
- Compass Data Centers (Root Data Center)
- Cologix (Colo-D)
- COPT Data Center Solutions (COPT DCS)
- CtrlS
- Digital Realty
- Equinix
- GDS Holdings
- Global Switch
- Hypertec
- Microsoft
- NTT Communications
- NDC Data Center
- ST Telemedia Global Data Centres
- Stream Data Center
- Turkcell
- Urbacon Data Center Solutions
- Vantage Data Center
New Entrants Data Center Investors
- Adani Group
- Chayora
- EdgeCore Internet Real Estate
- Echelon Data Centers
- NDC Data Centres
- GIGA Data Centers
- PointOne
- Prime Data Centers
- Regal Orion
- Space DC
- Stack Infrastructure
- Yotta Infrastructure Solutions
Key Questions Answered
- What is the global hyperscale data center market size and forecast
- Who are the leading hypescale data center developers in the US, Europe, and APAC
- The global hyperscale data center market share and leading vendors?
- What are the factors impacting the growth of the hyperscale data center market forecast?
- What are the drivers, trends, and restraints in the market?
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