Hyperscale Data Center Market Trends

Growth Drivers

• Increasing Demand & Utilization of Hyperscale Data Centers – which are massive business-critical facilities designed to efficiently support robust, scalable applications and can support thousands of individual servers that operate via high-speed internet connectivity. The increasing number of companies associated with big data production are favoring the development of such data centers which is why there is an increase in the number of hyperscale data centers worldwide. For instance, in 2021, the number of large data centers operated by hyperscale providers rose to over 700.
• Radically Increasing Volume of Data – and the development of data-driven technologies such as artificial intelligence (AI), machine learning (ML), IoT, blockchain, and metaverse are anticipated to boost the growth of the hyperscale data center market worldwide. It is observed that approximately 2.5 quintillion bytes of data are generated worldwide every day.
• Growing IT & Telecom Industry and the Expanding Data Centre Industry – is responsible for the rapid growth of the hyperscale data center market over the period of time. The data center industry was found to reach a valuation of around USD 1.2 billion in 2021, a 216% rise from USD 385 million in 2014.
• Rise in the Use of Big Data Technologies - and an increasing number of big data-producing companies who are responsible for the evolution of hyperscale data centers as they have the ability to share the processing load and quickly add or remove servers or other resources as needed to meet capacity demands are propelling the market growth. As per recent data, more than 24% of companies use big data analytics worldwide.

Challenges

• Requirement of huge capital investment – As hyperscale data centers support thousands of servers, they tend to be much larger than the facility size of the average data center. Moreover, it also requires a number of specialized high-density server racks to accommodate more components, like power suppliers and hard drives, with enough space for engineers to swap them out and customize them as needed. With so much equipment to support, hyperscale facilities need a massive amount of power. Furthermore, the ability to customize and swap out components which are key to the flexibility of hyperscale facilities and equipment needs a commitment to personalized configuration. All these requirements to build a hyperscale data center are expensive, time-consuming, hampering the market growth.
• High Cost of Implementation
• Heavy Reliability on Automation Tools