The hyperscale data center market is speculated to showcase solid growth by 2027 owing to prevalent use of online services around the world.
Hyperscale refers to the ability of a technological architecture to scale when more resources are added to it. Thus, hyperscale data centers provide a storage portfolio of services as well as scalable and robust applications to businesses or individuals. These data centers are owned and operated by the company that they support. Notably, extensive adoption of cloud computing has augmented industry growth in recent years.
Furthermore, industry players have been employing lucrative strategies to capitalize on emerging trends in the market, thereby enhancing global business outlook. For instance, in December 2021, Equinix, Inc., a prominent digital infrastructure provider, inked a partnership deal with Nasdaq, Inc., a leading technology company serving the capital markets, to scale its digital infrastructure, dubbed the Equinix NY11 data center, in New Jersey by leveraging Nasdaq’s cloud infrastructure.
The hyperscale data center market has been bifurcated based on application, component, end-use, and region. With respect to component, the market has further been divided into service and solution. Under solution, the market has been categorized into DCIM, cooling, networking equipment, power, LV/MV distribution, and IT racks & enclosures.
The power segment is set to witness sturdy development over the assessment period. Surging demand for advanced power supply solutions to ensure uninterrupted data center operations without downtimes is likely to boost segmental growth through 2027. The networking equipment segment is projected to amass considerable gains over the study timeline owing to escalating demand for networking equipment that supports efficient interconnection of a large number of data center components.
Under service, the market has been classified into monitoring services, installation & deployment, and maintenance & support. The monitoring services segment is expected to gain notable traction over the forecast period owing to soaring demand for remote monitoring services to enable efficient performance of data center facilities.
From the end-use perspective, the hyperscale data center market has been segmented into enterprises, cloud providers, and colocation providers. The enterprises segment is slated to exhibit robust expansion over the analysis timeframe on account of increasing number of enterprises adopting digital technologies.
In terms of application, the hyperscale data center market has been segmented into entertainment & media, BFSI, IT & telecom, retail & e-commerce, government, and others. The government segment is poised to expand at a significant CAGR over the review period. Growing number of government organizations that are implementing digital technologies is estimated to drive segmental uptake in the upcoming years.
On the regional front, the Latin America hyperscale data center market is anticipated to register a substantial valuation by the end of 2027. Rapid industrialization in Latin America would impel the demand for large IT facilities for data management, which is likely to foster regional market outlook over 2021-2027.