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 by investment is expected to grow at a CAGR of 4.02% during the period 2021–2026.

The ongoing COVID-19 pandemic is creating a high demand for hyperscale data centers across all regions. As most global workforce shifts to remote working, hyperscale facilities are gaining high traction in the data center market. The increasing adoption of digitalization, rising investments from telecommunication & service providers, and government initiatives towards the digital economy are significant factors for the hyperscale data center market growth. In terms of hyperscale construction, Apple, Facebook, Google, AWS, Microsoft, Alibaba, Baidu, OVH, and China Telecom are investing billions of dollars in the market.

The following factors are likely to contribute to the growth of the global hyperscale data center market during the forecast period:

  • Mergers & Acquisition Fueling the Growth of the Hyperscale data center market.
  • Cloud and Connectivity Driving Demand for Hyperscale Data Centers
  • Wholesale Colocation Demand Boosting Hyperscale Facility Development
  • Tax Incentives to Surge the Hyperscale Investment

    The study considers the present scenario of the Hyperscale data center market and its market dynamics for the period 2021?2026. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.

    The global hyperscale data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, geography. The market for server infrastructure has witnessed strong growth in the past two years. The competition between branded and ODM server suppliers will continue because multiple enterprises opt for server infrastructure based on open community designs (OCP). Server systems based on x86 architecture dominated the market with about 85% of the hyperscale data center market share. The increase in demand for server shipments will continue to grow moderately as enterprises are likely to move to the cloud or colocation platforms for their IT infrastructure operations during the forecast period.

    The UPS systems are widely adopted to provide backup power for cooling systems installed in the facility. The adoption of lithium-ion batteries is likely to increase during the forecast period. For instance, GPX Global Systems’ data center facilities in India are equipped with Lithium-ion batteries from Eaton. The contribution from colocation providers will be high in terms of lithium-ion UPS solutions. Vendors are also continuously innovating with UPS solutions to boost efficiency and reduce cost. With the emergence of nickel-zinc batteries and sodium-ion batteries, the adoption of 48V DC UPS systems will continue to grow depending on the effectiveness of these solutions.

    In data center projects, the investment in cooling systems is expected to be 15–20% of the overall cost, depending on the facility design and IT load. The facilities in Southeast Asia, China, India, Australia, the Middle East, and Africa are likely to prefer air-cooled chillers or chilled water systems or a combination of both air and water-based cooling techniques. Free cooling chillers that facilitate partial cooling using outside air are also highly preferred by several facilities. Tier IV facilities adopt the 2N+1 redundant configuration for cooling systems. For instance, Equinix’s London 10 data center facility is built with hybrid dry air coolers and chillers, with the N+2 redundancy for chillers and CRAH units with N+20% redundancy.

    Chiller units are the significant consumers of electricity in data centers that require a reliable and dedicated power supply. Most of the facilities that operate in warm climatic conditions are expected to implement free cooling chillers with smart technologies since they enable operations based on outside temperatures. The adoption of chiller units is expected to be higher in APAC and MEA than in North America, Western Europe, Nordic, and Eastern Europe. For instance, Stack Infrastructure Chicago CHIO2 data center is equipped with N+1 redundancy of air-cooled chillers with integral free-cooling and a rack power density of 7-8 kW per rack.

    The installation and commissioning process is carried out by engineering contractors, vendors, and data center operators. Installation and commissioning are important aspects of data center development. The growth in greenfield facilities will generate more revenues for installation and commission service providers. Installation should be carried out based on the tier design of the facility.

    Segmentation by Infrastructure
  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

    Segmentation by IT Infrastructure
  • Server
  • Storage
  • Network

    Segmentation by Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • 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
  • Air-Based Cooling Technique
  • Liquid-Based Cooling Technique

    Segmentation by General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Physical Security

    Insights by Geography
    The North American hyperscale data center market is leading the global hyperscale data center growth, with around 40% of the total number of hyperscale projects in the overall hyperscale industry. Virginia and Texas are the major markets for hyperscale data center operations, followed by Oregon, Ohio, Georgia, and Utah. In 2020, hyperscale data centers in North America added over 2 GW of power, including new facilities that opened in 2020 and are expected to be operational by June 2021.

    Segmentation by Geography
  • North America
    o US
    o Canada
  • Latin America
  • Western Europe
  • Nordic
  • Central & Eastern Europe
  • Middle East & Africa
  • APAC
    o China & Hong Kong
    o Australia & New Zealand
    o India
    o Japan
    o Rest of APAC
  • Southeast Asia

    Arista Networks, ATOS, Broadcom, Cisco Systems, Extreme Networks, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies are some of the IT infrastructure providers in the hyperscale data center market. HPE is one of the leading vendors in the market with a share of around 16%, closely followed by Dell Technologies. The hyperscale data center market is witnessing significant revenue contributions from ODM server manufacturers such as Quanta Systems (QCT), Wistron (Wiwynn), and Inventec. Vendor offerings are concentrated on the cloud, big data, artificial intelligence, and IoT-based application workloads.

    Prominent IT Infrastructure Providers
  • Arista Networks
  • ATOS
  • Broadcom
  • Cisco Systems
  • Extreme Networks
  • Hewlett Packard Enterprise (HPE)
  • Hitachi Vantara
  • Huawei Technologies
  • IBM
  • Inspur
  • Inventec
  • Juniper Networks
  • Lenovo
  • NEC Corporation
  • NetApp
  • Oracle
  • Pure Storage
  • Quanta Cloud Technology
  • Super Micro Computer
  • Wistron (Wiwynn)

    Prominent Support Infrastructure Provider
  • ABB
  • Asetek
  • Bosch Security Systems (Robert Bosch)
  • Caterpillar
  • Cummins
  • Condair Group
  • Delta Group
  • Eaton
  • Green Revolution Cooling
  • HITEC Power Protection
  • Jones Engineering Group
  • Legrand
  • Mitsubishi Electric Corporation
  • Nlyte
  • Nortek Air Solutions
  • Rolls-Royce Power Systems
  • Piller Power Systems
  • Rittal
  • Schneider Electric
  • Trane (Ingersoll Rand)
  • Vertiv Group

    Prominent Construction Contractors
  • Arup Group
  • Bouygues
  • Cap Ingelec
  • Corgan
  • CSF Group
  • DPR Construction
  • Faithful+Gould
  • Fluor Corporation
  • Fortis Construction
  • Gensler
  • Gilbane Building
  • HDR Architecture
  • Holder Construction
  • ISG
  • Jacobs Engineering Group
  • Mercury Engineering
  • M+W Group
  • Kirby Group Engineering
  • Larsen & Turbo (L&T)
  • Linesight
  • Mace Group
  • Morrison Hershfield
  • Mortenson Construction
  • Red-Engineering
  • Structure Tone
  • Syska Hennessy Group
  • Winthrop

    Key Data Center Investors
  • Apple
  • AWS (Amazon Web Services)
  • CyrusOne
  • Digital Realty
  • Equinix
  • Facebook
  • GDS Holdings
  • Google
  • Microsoft
  • NTT Global Data Centers (NTT Communications)

    Prominent Data Center Investors
  • 21Vianet - (Century Internet Data Center)
  • Africa Data Centres
  • Ascenty
  • Aligned Energy
  • Aruba
  • Bridge Data Centres
  • Chayora
  • Cologix
  • Colt Data Centre Services (COLT DCS)
  • Compass Data Centers
  • COPT Data Center Solutions
  • CoreSite Reality
  • Canberra Data Centres
  • Etisalat Group
  • Global Switch
  • Keppel Data Centres
  • QTS Realty Trust
  • ST Telemedia Global Data Centres
  • Shanghai Athub
  • Scala Data Centers
  • Tenglong Holdings Group (Tamron)
  • Turkcell
  • Teraco Data Environments
  • Vantage Data Centers

    New Entrants in the Hyperscale Data Center Market
  • AdaniConneX
  • Aquila Capital Investmentgesellschaft
  • Cirrus Data Solutions
  • Digital Edge DC
  • Echelon Data Centers
  • Global Technical Realty
  • IXAfrica
  • Mantra Data Centers
  • PointOne
  • Stratus DC Management

    1. How big is the hyperscale data center market investments?
    2. What is the growth of hyperscale data centers in the US region?
    3. What is the market size of hyperscale data centers in terms of area?
    4. Who are the key investors in the hyperscale data center market?
    5. What are the key factors driving the growth of the hyperscale data center market?