The global hyperscale data center market is predicted to rise from $39 billion in 2017 to $98.2 billion by 2022, growing at a CAGR of 20.3% during the forecast period (2017-2022), as per a report by BCC Research.
The hyperscale datacenters have long been used by internet service providers and cloud service vendors like Google, Microsoft and Amazon for managing high volumes of data. These datacenters store information, providing the scalability in business infrastructure.
In present time, with more and more enterprises adopting cloud, the rise in the internet of things (IoT) and Artificial Intelligence (AI), the hyperscale data centers are coming to typical data centers. The large enterprises in financial services, telecommunication, and retail sectors are going for hyperscale data centers for economics of scale and flexibility.
North America is the largest hyperscale data center market by size, and it will grow from $14.4 billion in 2017 to $35.4 billion in 2022, growing at a CAGR of 19.7% during the forecast period.
Asia Pacific hyperscale data center market is expected to witness the fastest growth, reaching $27.5 billion by 2022, from $9 billion in 2017, with a CAGR of 25%.
The hyperscale data center market is centered in China because of the development of cloud service providers in the region. These providers include Alibaba Cloud, Baidu, and Tencent. Additionally, financial services and telecommunication firms are also driving the hyperscale data center market.
The data privacy regulations have slowed down the growth of hyperscale datacenter market in Europe.
“Although pioneering companies such as Facebook, Amazon and Google are leveraging the hyperscale data center infrastructure, the technology is not an easy adaptation for the typical IT organization,” said BCC Research Senior Editor and report author Michael Sullivan. “Transforming from the IT environments for different functions, architectures and vendor control systems to a streamlined virtualized and centralized computing, storage and network resources are a tremendous paradigm shift.”
Impact on the performance of applications after virtualization remained a challenge for large enterprises while using hyperscale data centers.
Also read: QTS extends leases with two hyperscale anchor tenants in its Atlanta-Metro data center
As per the report, AT&T, Cisco, DataCore Software, Equinix, Fogo Data Centers, Global Switch, HPE, IBM, Juniper, Lenovo, and Oracle are the leaders in hyperscale data center market.
