Hyperscale data center market is expanding constantly with the increasing big data technology: cloud computing and Internet of Things (IoT). With steady infrastructure distribution to several networking sites and processing, monitoring, and storage of data, the hyperscale data center caters to the needs of big data companies and tech giants across the world. Additionally, the emergence of 5G network solutions and cloud based data management services significantly influences the global hyperscale data center market demand. As per the Cisco cloud index, nearly 628 hyperscale data centers will be present across the world by the year 2021. This is reflective of the future prospect for the growth of hyperscale data center market in the forthcoming years. The global Hyperscale Data Center Market revenue stood at $34.3 billion for the FY 2018 and generated a huge demand prospect which is projected to increase at a healthy CAGR of 20% during the forecast period of 2019-2025.
The hyperscale data center market will leverage demand-pull inflation by the cloud providers attributed to the large scale deployment of cloud service throughout the world. This demand will escalate considerably at a robust CAGR of 19.4% through to 2025. As the global business enterprise is on the rise, they rely largely on technology assistance for digital storage, computing, monitoring, backup, and replication of corporate data on secured virtual and easy to access cloud network. Cisco highlights that 95% of the total data center traffic will be initiated by the global cloud IP traffic by the year 2021. This is indicative of the high revenue income generated by the cloud services provider. There is a high dependency on various “as a service” models such as the Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), which upheaves the demand for effective cloud networking system by various industries. The data storage companies are claimed to induce high requirement for cloud storage services in the rapidly technologically evolving digital age. Additionally, the data storage market accomplished a revenue generation of $25 billion to $40 billion, which implicates the high scope of opportunity for the cloud service providers to prosper across the world.
North America is holding a dominant place in the global hyperscale data center market and contributed a major regional share of 46.7% in the year 2018. Being a technologically advanced nation, North America has adopted digital revolution such as cloud and colocation service and solutions in a multifarious industries which includes the IT & telecom industry, government organizations, healthcare industry, media and entertainment business, an others. This provides a wider scope for the hyperscale data center to flourish admirably in this region. Also, the average fixed download speed in North America is tracked at 43.2 Mbps with and leads in the global market with 34.3 Mbps mobile download speed. This projects the overall internet usage in this region owing to which service providers rely highly on associated data infrastructure to manage the consistency and distribution of content equally across the network. Consequently, this boosts the domestic hyperscale data center market eventually elevating the growth prospects.
Apart from this, North America is home to some of the largest hyperscale data center sites which includes Microsoft’s Chicago Northlake data center, The Apple Data Center in North Carolina, Google’s data center in Lenoir, North Carolina, Microsoft’s Quincy Washington data center, Facebook’s data center in Altoona, Iowa, and many others. This signifies the huge revenue contribution by North America to the hyperscale data center market.
Green HyperScale Data Centers Trend:
Mounting global demand for cloud services and internet usage gradually increases the reliance on data centers for driving business economy, which requires tremendous amount of energy largely affecting the surrounding environment. According to the International Energy Agency (IEA), hyperscale data center consumed nearly 60.9 TWh of energy in the year 2018 which is estimated to reach 86.6 TWh by the year 2021. Consequently, companies are investing colossally on the novel green hyperscale data center establishment which are more energy efficient with reduced carbon footprint attracting huge commercial customers across the world. This novel concept will considerably promote sustainability and emphasize on the prosperity of the hyperscale data center market heading towards the eco-friendly energy option.
Liquid Cooling Technology And AI Interference:
Increase in infrastructure distribution and growing power density in the hyperscale data center requires adequate cooling systems to maintain the system heating due to extensive data management for effective continuity of daily operations. However, traditional hyperscale data center cooling procedures through air-cooled systems occupied greater space and emits much noise being run by higher RPM (revolution per minute). With the advent of liquid cooling technology in the hyperscale data centers simultaneously driven by AI automation provides energy efficient system cooling. Offering environmental benefits, boosting the power usage effectiveness (PUE), and minimizing the overall power consumption of the hyperscale data center facility, the liquid cooling technology is disrupting the niche market whereby pushing forth the demand gain.
Expansion, And Investments In The Global Hyperscale Data Center Market:
The global hyperscale data center market is experiencing large scale investment and gaining prominence with constant emergence of newer technology and solutions to uplift the revenue generation of several leading companies. Concurrently, this aids the geographical expansion strategy of the pioneering companies also boosting the global market economic productivity in the process. Recently, Equinix and Singapore’s GIC jointly ventured to invest a sum of $1 billion to construct a new hyperscale data center in Europe which will also be able to cope with the increase in demand of the world’s biggest cloud servers. Similarly, Google invests $675.58 million for building a hyperscale data center in Denmark. Additional contribution extended by other tech giants include $20 billion investment by CtrlS for the Tier-4 hyperscale data center construction in India. Also, OTS amd Alinda Capital Partners entered into a strategic partnership with $240 million investment to establish an 118,000 sq. ft. hyperscale data center facility. These massive investments and collaboration sets a new forefront for the global hyperscale data center market development and expansion across the world.
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Company Profile And Product Elaboration:
Global hyperscale data center market is innovation and development is aided by the huge contribution by the key players such as Cisco Systems, HPE, IBM, Dell, Ericsson, Huawei, Intel Corporation, Lenovo Group Ltd., Quanta Computer Inc, and Marvell Technology Group Ltd. With various strategic planning for enhancing and upgrading the product portfolio, the niche market experiences colossal investments by these companies for performing R&D activities. Consequently, this is opens up newer possibility for the market progress attribution to the manufacturing of novel products and creation of new solutions to maintain a healthy competition in the market.
IBM is a leading multinational information technology company widely known for the cloud storage services to several end-user companies throughout the world. IBM is also credited to offer a wide range of data center services which include Data Center Consolidation and Relocation, Data Center Operations and Management, Data Center Strategy, IBM Prefabricated Modular Data Center, and others. Cisco systems is another global technology company providing several networking solutions, IoT and mobile wireless services, security and cloud services, and data center architecture services and solutions. The innovation in Cisco’s data center services include data center switching, network architecture, unified computing, hyperconverged infrastructure, and others.
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