(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Nov. 04, 2024 (GLOBE NEWSWIRE) -- The "Hyperscale Data Center market Landscape 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The Hyperscale Data Center Market was valued at USD 184.48 billion in 2023, and is expected to reach USD 304.73 billion by 2029, rising at a CAGR of 8.72%. In the global hyperscale data center market, the Americas dominate the market in terms of investment with a market share of around 48% followed by APAC, Europe and MEA.
In the Americas hyperscale data center market North America has the highest investment followed by Latin America. Europe was the third largest hyperscale data center market globally. In Europe, Western Europe dominated the Hyperscale data center market in terms of investment, followed by Nordics and Central & Eastern Europe.
In the Middle East & Africa, Saudi Arabia dominated the hyperscale data center market in terms of investment, and it was followed by South Africa, UAE, Israel, and other countries. The APAC was the second-largest hyperscale data center market in terms of investment across the globe. China was the largest hyperscale data center market in APAC with a market share of around 48%, followed by Japan, Australia, India, Indonesia, Hong Kong, Malaysia, and other APAC countries.
KEY TRENDS
Rising Procurement of Artificial Intelligence
The AI industry is set to increase the size of hyperscale data centers significantly and propels the hyperscale data center market growth. Even though the current AI investments have not fully compensated for the growth in hyperscale data centers, the capacity of these data centers, especially for AI workloads, is expected to almost triple in the next six years. Countries across regions are increasingly embracing AI owing to the growing prevalence of automation and intelligent operations. Various governments in all regions are introducing numerous Artificial Intelligence (AI) strategies. For instance, In October 2023, the Global Artificial Intelligence (AI) Governance Initiative decided to provide an open, inclusive, and equitable framework for the advancement, security, and oversight of emerging AI technologies and services. The impact of AI on the economy is evident as major tech companies recognize the importance of leading in AI adoption. For instance, the rapid growth of ChatGPT illustrates how compelling AI can be. The widespread use of AI applications is expected to substantially increase data, requiring significant expansion of data infrastructure. AI adoption will impact the digital infrastructure sector similar to the public cloud services industry over the past decade. By 2040, over 80% of hyperscale capacity is projected to cater to AI applications. Businesses are developing AI strategies, with significant demand from hyperscale customers for additional capacity dedicated to AI. Additionally, digital infrastructure companies explore AI applications to optimize their operations, such as improving customer care through real-time troubleshooting and using AI-enabled analytics for network-based businesses.
Growing Procurement of the Big Data & IoT Solutions
This increased trend in IoT usage is expected to coincide with an increase in the prevalence of AI in the future. At present, most data centers or cloud regions are being developed due to an increase in the use of AI & ML and other technologies in various sectors. With the increased use of new technologies, data centers need to evolve to handle the greater need for processing and storing data while considering how IoT and big data affect data centers in terms of performance, efficiency, and security. Big data and IoT technologies have experienced significant uptake in recent years across the globe. The rapid development of data traffic is fueled by IoT, which seamlessly links the digital and physical realms through a network of sensors. Various industry sectors and government entities are embracing these technologies, with the Banking, Financial Services, and Insurance (BFSI), healthcare, education, and telecom sectors all over the globe making substantial investments in big data and IoT owing to the escalating trend of digitalization. For instance, In November 2023, through a $192 million state-sponsored effort, CFE Telecomunicaciones will collaborate with Starlink to deliver satellite internet and mobile phone services, breaking down obstacles to digital isolation in rural Mexico.
Sustainable & Innovative Data Center Technologies
Data centers are heavy consumers of energy, contributing significantly to emissions. Nevertheless, the impact of these emissions can be reduced by transitioning to sustainable energy sources such as green hydrogen and solar power. Most of the data is currently being stored in data centers worldwide. According to the International Energy Agency (IEA) estimation, data centers alone will consume approximately 8% of the total energy consumption by 2030. Latin American countries are well-positioned to embrace renewable energy, especially solar power, because of their plentiful sunlight and ability to supply electricity for rural and off-grid cell sites. This can be achieved by installing centralized solar farms or solar panels on-site. For instance, 38% of the energy used by 55% of Claro's cell sites in Brazil comes from solar power. Government support for green data centers across Europe is crucial in driving the region's hyperscale data center market toward a more sustainable future. European countries not only address environmental concerns but also set the stage for substantial growth in the hyperscale data center sector, as they implement stringent regulations and incentives to promote energy efficiency and renewable energy. This proactive approach ensures that the market can expand to meet the increasing demand for data storage while aligning with global sustainability goals. With the increasing interest in renewable energy sources, more investments in on-site power generation and PPAs are expected in all regions. This creates new chances, particularly for companies focused on renewable energy solutions. For instance, In September 2023, Solarvest Borneo Sdn Bhd, a subsidiary of the Malaysian clean energy company Solarvest Holdings Berhad, established a partnership to introduce a hyperscale green data center testbed and training program in Malaysia.
Rising Demand for Cloud-based Services
All over the globe, many companies are embracing cloud-based services. This shift is largely being driven by a range of major cloud service providers such as Google, Amazon Web Services (AWS), Microsoft, Alibaba, Oracle, Tencent, IBM and others. These providers offer businesses the ability to store data, run software, and access computing power over the Internet, thereby eliminating the need for in-house data centers. For instance, In August 2023, Google Cloud established a new cloud region in Berlin, Germany. The Berlin-Brandenburg region, the company's second in Germany and 12th in Europe, caters to local cloud capacity needs for scalable workloads and disaster recovery. Germany's stringent data localization laws, including the GDPR and the German Federal Data Protection Act, necessitate local data storage and processing, prompting such substantial investments in local data center infrastructure. Latin America is an emerging marketplace for cloud adoptions and investments, with considerable participation from major cloud service providers such as Google, AWS, Microsoft, Oracle, IBM Cloud, and others. The European data center market is thriving due to the increased use of cloud services, driven by digital transformation, data security concerns, and the rise of edge computing. Investments in advanced infrastructure, along with a focus on sustainability and renewable energy, are key factors contributing to the dynamic expansion of data centers throughout the region and support the hyperscale data center market growth. The consistent growth in cloud adoption across sectors such as retail, healthcare, education, and government in APAC, fueled by factors such as the rollout of 5G and improved submarine cable connections, alongside a general shift toward cloud technology, has led to an increased demand for secure and easily transferable data. For Instance, In December 2023, Yotta Data Services unveiled an advanced GPU-based cloud on its Shakti Cloud platform, integrating Nvidia GPUs in AI and high-performance computing applications, with deployment beginning in January 2024 and scaling up to 32,768 GPUs by the end of 2025.
SEGMENTATION INSIGHTS
Hyperscale data centers utilize a range of server types to address diverse operational needs. Blade servers are favored for their high power density and compact design, making them suitable for dense computing environments. Rack servers, known for their flexibility and ease of expansion, are frequently employed for various enterprise applications. In the global hyperscale data center market, operators are increasingly sourcing ODM infrastructure, with major data center operators adopting ARM-based servers and processors. The growing deployment of Artificial Intelligence (AI) and Machine Learning (ML) workloads will result in a rise in liquid immersion and direct-to-chip cooling in some regions. Data centers in Latin America are progressively adopting advanced cooling techniques, including air and liquid-based systems. This trend features innovations like liquid immersion cooling and the implementation of cutting-edge air conditioning technology by Google in its latest data center in Uruguay. There has been significant global growth in the establishment of Tier III and IV-certified data centers. Both private and public entities, including those in the BFSI, education, and government sectors, are securing Uptime Institute certifications for their data centers, whether in the design phase or fully developed. This reflects a strong commitment to reliability and operational excellence in data center infrastructure. District heating is common in Europe, where data center firms transfer heat generated from their operations to nearby offices, residences, swimming pools, and other facilities. The Nordic region is at the forefront of developing district heating systems with data centers, while Western Europe has also increased investments in this technology.
VENDOR LANDSCAPE
The major hyperscale operators in the global hyperscale data center market include AWS, Microsoft, Meta, Google, Digital Realty, Chindata Group, GDS, Iron Mountain, AirTrunk, and others.
IT INFRASTRUCTURE PROVIDERS
Arista Networks Atos Broadcom Cisco Systems Dell Technologies Extreme Networks Fujitsu Hewlett Packard Enterprise (HPE) Hitachi Vantara Huawei Technologies IBM Inspur Inventec Micron Technology MiTAC Holdings NetApp Nimbus Data Nexsan (StorCentric) Oracle Pure Storage Pivot3 Quanta Cloud Technology(QCT) Seagate Technology Supermicro Synology Toshiba Western Digital Wiwynn
Support Infrastructure Providers
3M ABB Airedale Alfa Laval Asetek Assa Abloy Bloom Energy Carrier Caterpillar Cummins Condair Cormant Cyber Power Systems Daikin Applied Delta Electronics Eaton Enlogic FNT Software Generac Power Systems Green Revolution Cooling (GRC) HITEC Power Protection Honeywell International Johnson Controls Kohler Energy KyotoCooling Legrand Mitsubishi Electric Munters Natron Energy NetZoom Nlyte Software Panduit Piller Power Systems Riello Elettronica Rolls-Royce Schneider Electric Siemens STULZ Trane TrippLite (Eaton) Vertiv Yanmar ZincFive
Construction Contractors & Subcontractors
AECOM Bouygues Construction DPR Construction Holder Construction Jacobs M+W Group Mercury Arup AtkinsRealis Aurecon BENTHEM CROUWEL ARCHITECTS CAP INGELEC Corgan Dar Deerns DSCO Group Edarat Group Fluor Corporation Fortis Construction Gensler Gilbane Building Company HDR ISG Kirby Group Engineering KKCG Laing O'Rourke Larsen & Toubro Linesight Mace Morrison Hershfield Mortenson NTT Facilities RED Engineering Royal HaskoningDHV Sterling and Wilson STO Building Group Syska Hennessy Group Turner Construction Company Winthrop Technologies
Data Center Investors
Apple AWS (Amazon Web Services) CyrusOne Digital Realty Equinix Facebook (Meta) Google Keppel Data Centres Microsoft NTT DATA ST Telemedia Global Data Centres Vantage Data Centers VNET GrouP Africa Data Centres Nxtra by Airtel AirTrunk Operating Aligned Data Centers atNorth Beyond.pl Big Data Exchange Bridge Data Centres CDC Data Centres Chindata Group CloudHQ ClusterPower Cologix Compass Datacenters CoreSite DataBank Data4 Group EdgeConneX Etisalat Flexential GDS Services Global Switch Green Mountain AS - Data centres Gulf Data Hub HostDime InterNexa Iron Mountain iXAfrica Data Centres IXcellerate Moro Hub NEXTDC ODATA Ooredoo Group Orange Business Paratus Namibia QTS Data Centers Raxio Data Centres Rostelecom Data Centres Scala Data Centers Sify Technologies SUNeVision Telecom Egypt T5 Data Centers Turkcell Yondr Yotta Infrastructure. AdaniConneX KEVLINX Novva Data Centers Data First Khazna Data Centers Mobily Open Access Data Centres (OADC) center3
NEW ENTRANTS
Ada Infrastructure Corscale Data Centers Crane Data Centers DHAmericas Edged Layer 9 Data Centers Quantum Loophole NE Edge Rowan Digital Infrastructure
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 249 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $184.48 Billion |
| Forecasted Market Value (USD) by 2029 | $304.73 Billion |
| Compound Annual Growth Rate | 8.7% |
| Regions Covered | Global |
Key Topics Covered:
Segmentation by Infrastructure
IT Infrastructure Electrical Infrastructure Mechanical Infrastructure General Construction
Segmentation by IT Infrastructure
Server Infrastructure Storage Infrastructure Network Infrastructure
Segmentation by Electrical Infrastructure
UPS Systems Generators Transfer Switches & Switchgear PDUs Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Cooling Systems Racks Other Mechanical Infrastructure
Segmentation by Cooling System
CRAC & CRAH Units Chiller Units Cooling Towers, Condensers & Dry Coolers Economizers & Evaporative Coolers Other Cooling Units
Segmentation by Cooling Technique
Segmentation by General Construction
Core & Shell Development Installation & Commissioning Services Engineering & Building Design Fire Detection & Suppression Physical Security DCIM/BMS Solutions
Segmentation by Tier Standards
Tier I & Tier II Tier III Tier IV
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Hyperscale Data Center Market
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