Hyperscale Datacenter Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 167.34 Billion |
| Market Size (2030) | USD 602.39 Billion |
| Growth Rate (2025 - 2030) | 23.58% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Hyperscale Datacenter Market Analysis by Mordor Intelligence
The hyperscale data center market is valued at USD 167.34 billion in 2025 and is forecast to reach USD 602.39 billion by 2030, reflecting a robust 23.58% CAGR. Scale economics, AI-centric hardware demand, and sovereign-cloud regulations are re-shaping facility design, with GPU racks routinely exceeding 50 kW power density.[1]StorageReview Staff, “Google Builds 1 MW Racks for AI Training,” StorageReview, storagereview.com Accelerated regional build-outs in Europe and Asia-Pacific, combined with real-time payment mandates in key fintech hubs, sustain a construction pipeline that exceeds 3 GW of new capacity annually. Operators are pivoting from air to direct-to-chip liquid cooling, while regulatory heat taxes in the Netherlands and Singapore heighten focus on carbon-aware site selection. Strategic land banking and multi-year GPU supply agreements have become decisive competitive levers as silicon shortages and long utility lead times converge.
Key Report Takeaways
- By data center type, Enterprise/Hyperscale Self-build held 70.2% of hyperscale data center market share in 2024, whereas Hyperscale Colocation is projected to expand at a 25.6% CAGR to 2030.
- By component, IT Infrastructure commanded 48% revenue share of the hyperscale data center market in 2024, while Software & Services records the fastest 27.1% CAGR through 2030.
- By tier, Tier III facilities accounted for 65.4% share of the hyperscale data center market size in 2024, yet Tier IV is growing at a 29.4% CAGR on mission-critical fintech demand.
- By end-user industry, Cloud Service Providers led with 75.6% share in 2024; Healthcare & Life Sciences is advancing at a 26.2% CAGR to 2030.
- By geography, North America represented 43.3% share in 2024, while Asia-Pacific is the fastest-growing region with a 29.1% CAGR through 2030.
Global Hyperscale Datacenter Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Exploding GPU-centric AI/ML Workloads Requiring more than 50 kW Racks in the U.S. & China | +8.2% | North America & China core, spill-over to Europe | Medium term (2-4 years) |
| Hyperscale Cloud Providers' 'Sovereign Cloud' Roll-outs in Europe | +4.7% | Europe primary, expanding to APAC | Long term (≥ 4 years) |
| FinTech Real-Time Payment Mandates Accelerating Tier IV Demand in Singapore & India | +3.1% | APAC core, with regulatory influence in MEA | Short term (≤ 2 years) |
| 5G Edge-Core Consolidation Creating Regional Hub Requirements in Nordics & Oceania | +2.8% | Nordic & Oceania primary, model replication globally | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Exploding GPU-centric AI/ML workloads requiring more than 50 kW racks in the U.S. & China
AI training clusters are re-engineering facility layouts, with Google already fielding 1 MW racks that draw +/- 400 VDC power. Silicon scarcity has prompted operators to lock in multi-year GPU contracts, elevating build-times and capital intensity. xAI’s 200,000-GPU campus in Memphis highlights the scale of transformation, compelling data center teams to redesign power distribution, network fabrics, and liquid cooling loops around racks that consume 160% more energy than legacy servers. The United States and China dominate deployments thanks to supportive AI funding ecosystems and agile permitting frameworks.
Hyperscale cloud providers’ sovereign-cloud roll-outs in Europe
European data-residency laws require “EU-only” operational control, leading AWS to invest EUR 7.8 billion (USD 8.5 billion) in a German sovereign cloud by 2040.[2]Amazon Newsroom, “AWS Plans German Sovereign Cloud,” About Amazon, aboutamazon.com Deutsche Telekom’s 8ra initiative—targeting 10,000 edge nodes—signals local incumbents’ intent to narrow dependency on U.S. cloud stacks.[3]Deutsche Telekom AG, “8ra Edge-Cloud Initiative,” telekom.com Sovereign models extend beyond compliance, fostering indigenous AI R&D and catalyzing regional hardware supply chains. Momentum is already visible in France through Orange and Capgemini’s Bleu platform, foreshadowing similar requirements in the Middle East and parts of APAC.
FinTech real-time payment mandates accelerating Tier IV demand in Singapore & India
National payment systems now stipulate near-zero downtime, pushing banks toward 99.995% resilient facilities. Singapore’s MAS consolidated payments schemes under a single entity to enforce sub-millisecond processing, intensifying Tier IV construction around Jurong and Loyang.[4]Monetary Authority of Singapore, “MAS Sets Up New Payments Entity,” mas.gov.sg India’s Unified Payments Interface processes more than 100 billion annual transactions, requiring fully redundant, geographically discrete halls. Financial penalties for latency breaches heighten urgency, and operators responding first capture premium, long-term hosting contracts.
5G edge-core consolidation creating regional hub requirements in Nordics & Oceania
Microsoft’s USD 3.2 billion Swedish build exploits abundant hydro and wind power to serve consolidated 5G cores across Northern Europe. TikTok’s leasing of all three Green Mountain halls in Norway illustrates how content providers piggyback on regional hubs to serve pan-European audiences. Oceania replicates this strategy, with Australia acting as a multi-tenant anchor for South Pacific connectivity. The model reduces latency while slashing distributed-edge opex.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Water-Usage Restrictions for Evaporative Cooling in Western U.S. & Spain | -3.4% | Western U.S. & Southern Europe primary, expanding to water-stressed regions globally | Short term (≤ 2 years) |
| GPU Supply Chain Bottlenecks Limiting Rack-Level Density Expansion | -4.1% | Global impact with concentration in U.S. & China | Medium term (2-4 years) |
| Rising Heat-Tax & Carbon Levies in Netherlands, Singapore & Germany | -2.3% | Europe & Singapore primary, regulatory model spreading to other developed markets | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Water-usage restrictions for evaporative cooling in Western U.S. & Spain
California’s regulators now mandate refrigerant-based systems that cut water draw, inflating capex by up to 20%. Arizona reports a 1 MW facility can consume 6.75 million gallons annually, placing data centers under scrutiny alongside agriculture and housing. Spanish droughts trigger similar curbs, steering developers toward coastal plots with desalination pipelines or inland campuses using closed-loop liquid cooling.
GPU supply-chain bottlenecks limiting rack-level density expansion
NVIDIA H100 lead-times have stretched past 12 months, prompting hyperscalers to pre-pay multi-year allocations and diversify to AMD MI300 accelerators. Advanced substrate production remains concentrated in Taiwan and South Korea, magnifying geopolitical risk. Grey-market premiums erode ROI models and delay AI feature roll-outs, with downstream effects on the hyperscale data center market.
Segment Analysis
By Data Center Type: Self-build Dominance Meets Rapid Colocation Uptake
Self-build operators accounted for 70.2% of hyperscale data center market share in 2024, riding capital-intensive programs such as Amazon’s USD 150 billion multiyear roadmap. Control over design enables bespoke power trains and proprietary network fabrics tuned for AI clusters. Yet hyperscale colocation is forecast to deliver a 25.6% CAGR, narrowing the ownership gap as speed-to-market trumps asset control in new regions.
Colocation providers secure land and power in advance to offer modular suites on 12-month lead-times, compressing occupancy ramp-up for cloud entrants. Vantage’s USD 9.2 billion equity raise underpins this expansion, indicating private-equity appetite for recurring revenue tied to long-term hyperscale contracts. As more sovereign-cloud deals stipulate local partners, colocation gains strategic relevance across emerging markets.
Note: Segment shares of all individual segments available upon report purchase
By Component: Hardware Primacy Amid Software-led Efficiencies
The segment generated 48% of the hyperscale data center market size from IT Infrastructure purchases in 2024, with GPUs, DDR5 memory, and NVMe storage driving wallet share. Electrical back-up systems such as 30 MW lithium-ion farms now feature in standard bill-of-materials. Software & Services is rising at 27.1% CAGR, reflecting demand for AI-driven resource orchestration that yields power and rack-density gains.
Security stacks integrated with zero-trust frameworks outpace baseline monitoring tools as multi-tenant AI workloads elevate risk profiles. Over the forecast period, automated workload placement is projected to defer 8-10 GW of new build by maximizing existing utilization—underscoring a shift from brute-force expansion to intelligent capacity management.
By Tier: Tier IV Gains Momentum on Mission-Critical Use Cases
Tier III continues to dominate at 65.4% share, forming the backbone of the hyperscale data center market. Replicable 60 MW blueprints leveraging N+1 topologies minimize construction risk and enable sub-USD 8 million per MW build costs worldwide. Nevertheless, Tier IV capacity is projected to surge at 29.4% CAGR as fintech and healthcare workloads migrate off legacy mainframes.
Institutions pursuing instant settlement or high-frequency genomic analysis cannot tolerate the 95-minute annual downtime permitted under Tier III. Consequently, operators integrate 2N architecture, fault-tolerant distribution, and active-active cooling loops even though opex rises by 15-18%. This architectural premium is offset by higher contractual rates and low churn, anchoring predictable cash flows for owners.
Note: Segment shares of all individual segments available upon report purchase
By End-User Industry: Healthcare Surge Challenges Cloud Provider Hegemony
Cloud Service Providers still represent 75.6% of 2024 demand, leveraging global availability zones for platform consistency. Growth, however, is tilting toward specialist verticals. Healthcare & Life Sciences is advancing at a 26.2% CAGR as HIPAA and GDPR carve-outs accelerate dedicated infrastructure leasing.
Genome-sequencing projects, radiology AI, and tele-surgery streams require local data residency and sub-50 ms latency, factors better served by regionally distributed hyperscale campuses than by distant mega-hubs. Parallel upticks in public-sector and defense segments, driven by FedRAMP modernization, widen the addressable base beyond the traditional cloud cohort.
Geography Analysis
North America generated the largest regional revenue, accounting for 43.3% of the hyperscale data center market in 2024. Virginia’s “Data Center Alley” alone cleared 2 GW of new substation requests last year, yet grid congestion now steers demand to Ohio, Pennsylvania, and North Carolina where Amazon is injecting USD 30 billion across multiple AI-ready campuses. Utility interconnection timelines stretching up to seven years are prompting inter-regional diversity strategies and renewable power purchase agreements that hedge carbon exposure.
Asia-Pacific is the clear growth engine with a projected 29.1% CAGR. Japan anchors investment on the back of AWS’s JPY 2.26 trillion (USD 15.1 billion) expansion, while Oracle and NTT add capacity to meet domestic AI and gaming workloads. India’s tax incentives and digital-public-goods framework propel nationwide hyperscale corridors from Mumbai to Hyderabad. Singapore, despite a temporary moratorium, re-opened its approvals under a sustainability scorecard, unlocking fresh Tier IV pipeline to service ASEAN fintech flows.
Europe enjoys steady inflows, bolstered by sovereignty mandates and Nordic renewables. Brookfield’s USD 10 billion Swedish campus and Google’s EUR 600 million (USD 650 million) Norwegian build illustrate how cool climates and green grids cut operational PUE below 1.15. Heat taxes in the Netherlands and power caps around Dublin create supply discipline, nudging operators toward continental tier-two cities. Future growth hinges on harmonizing environmental constraints with the Digital Decade’s cloud adoption targets.
Competitive Landscape
The top five providers—Amazon, Microsoft, Google, Meta, and Alibaba—control roughly 60% of installed hyperscale megawatts, yielding significant economies of both design and procurement. Their vertically integrated models bundle IaaS, PaaS, and colocation, blurring traditional boundaries and exerting pricing pressure on standalone hosts. Nonetheless, regional specialists such as Green Mountain, atNorth, and ST Telemedia leverage local incentives, renewable guarantees, and proximity cooling to win sovereign-cloud and edge workloads.
Technology differentiation is accelerating. Google’s immersion and direct-to-chip cooling for 1 MW racks grants a 30% energy-efficiency delta versus legacy air-cooled peers. Microsoft invests in small-modular-reactor PPAs to lock long-term zero-carbon baseload, a strategic move to shield from volatile energy markets. Equipment vendors respond with integrated liquid manifolds and 800 G switch fabrics, helping operators push toward 100 kW-per-rack densities without floor-space inflation.
Capital formation stays vibrant. Private-equity houses and infrastructure funds rotate from stabilized telecom towers into hyperscale pipelines, lured by 20-year triple-net contracts and index-linked escalators. Vantage, DigitalBridge, and Brookfield headline multi-billion-dollar raises earmarked for brownfield expansion and greenfield megacampuses in Europe and North America. Meanwhile, geopolitical risk management drives a two-supply-chain model, with U.S. and Chinese hyperscalers cultivating parallel vendors to mitigate export-control uncertainty.
Hyperscale Datacenter Industry Leaders
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Digital Realty Trust, Inc.
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Equinix, Inc.
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Amazon Web Services, Inc.
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NTT Ltd.
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CyrusOne Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Amazon announced USD 10 billion investment in North Carolina data centers to expand AI infrastructure, creating 500 high-skilled jobs and establishing a Southeast AI hub.
- June 2025: Brookfield Asset Management committed USD 10 billion to develop AI data center infrastructure in Sweden over 10-15 years, including a 750 MW facility in Strangnas.
- June 2025: Amazon revealed plans to invest AU 20 billion (USD 13.2 billion) in Australian data center infrastructure from 2025-2029, marking the country’s largest technology investment.
- May 2025: BSO unveiled DataOne, Europe’s first giga-scale AI hosting data center in France, expanding from 15 MW to 400 MW by 2028.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the hyperscale data center market as global revenue generated by facilities housing at least 5,000 servers and delivering more than 20 MW of critical IT load; coverage spans construction outlays, refresh hardware, facility software, and managed operations that support cloud, AI, and other high-throughput digital workloads.
Scope Exclusion: We exclude edge locations below 10 MW, legacy carrier hotels, and containerized micro-sites located inside enterprise campuses.
Segmentation Overview
- By Data Center Type
- Enterprise / Hyperscale Self-build
- Hyperscale Colocation
- By Component
- IT Infrastructure
- Electrical Infrastructure
- Mechanical and Cooling Infrastructure
- Software and Services
- By Tier Standard
- Tier III
- Tier IV
- By End-user Industry
- Cloud Service Providers
- BFSI
- Social Media and Digital Content
- Healthcare and Life Sciences
- Government and Public Sector
- Other End-user Industries
- By Geography
- North America
- United States
- Canada
- Mexico
- Europe
- United Kingdom
- Germany
- Netherlands
- France
- Ireland
- Rest of Europe
- Asia-Pacific
- China
- India
- Singapore
- Japan
- Australia
- Indonesia
- Rest of Asia-Pacific
- South America
- Brazil
- Chile
- Rest of South America
- Middle East
- United Arab Emirates
- Saudi Arabia
- Turkey
- Rest of Middle East
- Africa
- South Africa
- Nigeria
- Rest of Africa
- North America
Detailed Research Methodology and Data Validation
Primary Research
Our analysts interviewed facility design engineers, switchgear manufacturers, and colocation sales leads across North America, Europe, and Asia-Pacific to confirm build-cost per megawatt, density targets, and liquid-cooling timelines. Short surveys of cloud tenants cross-checked workload growth expectations.
Desk Research
We began by mining U.S. EIA and Eurostat power data, Synergy Research hyperscale counts, and Singapore IMDA filings to anchor installed megawatts and utilization. Briefs from Uptime Institute helped calibrate average PUE and rack-density migration.
Operator 10-Ks, D&B Hoovers financials, and Factiva news feeds revealed current capex, while Questel patent sweeps flagged cooling innovations. Company decks and trade association portals rounded out context; the list is illustrative only.
Market-Sizing & Forecasting
We start with a top-down rebuild of operator capex and live megawatt inventory, converting those inputs to revenue through regional build-cost curves and refresh cycles. Sampled server shipments, indicative lease rates, and OEM ASPs act as bottom-up checks. Key drivers, capex intensity, rack density, PUE, quarterly megawatt adds, and land-power access feed a multivariate regression that projects five years forward. Missing OEM data are bridged through moving averages.
Data Validation & Update Cycle
Every output passes variance checks against third-party indices, followed by senior review; experts are re-contacted when deviations exceed set thresholds. We refresh the model annually and issue interim updates whenever multi-gigawatt campus announcements or regulatory shifts materially move baselines.
Why Mordor's Hyperscale Datacenter Baseline Stands Solid
Published estimates vary widely; buyers deserve to know why ours differs.
Mordor's disciplined scope, yearly refresh cadence, and blended modeling provide a figure stakeholders can trust. External studies often fold retrofit spend, limit coverage to hardware, or skip Asia-Pacific, producing 2024 values that range from USD 24.54 billion to USD 162.79 billion.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 167.34 B (2025) | Mordor Intelligence | - |
| USD 162.79 B (2024) | Global Consultancy A | Combines retrofit and construction spend without adjusting for service revenue overlap |
| USD 44.89 B (2024) | Trade Journal B | Captures only hardware sales, excludes software, services, and Asia-Pacific capacity |
| USD 24.54 B (2024) | Industry Analyst C | Limits scope to new server shipments and omits colocation halls |
The comparison shows that when clear scope, updated inputs, and blended modeling are applied, Mordor delivers a balanced, transparent baseline that strategy teams can replicate and stress-test with confidence.
Key Questions Answered in the Report
What is the current size of the hyperscale data center market?
The hyperscale data center market is valued at USD 167.34 billion in 2025.
How fast is the hyperscale data center market expected to grow?
It is projected to post a 23.58% CAGR, reaching USD 602.39 billion by 2030.
Which region is growing the fastest in hyperscale data centers?
Asia-Pacific is forecast to grow at a 29.1% CAGR through 2030, powered by Japanese, Indian, and Australian build-outs.
Why are Tier IV facilities gaining traction?
Fintech real-time payment mandates and stringent healthcare uptime requirements demand 99.995% availability, elevating Tier IV investment.
What cooling technologies are becoming standard for AI workloads?
Direct-to-chip liquid cooling and immersion systems are replacing air cooling to handle racks exceeding 50 kW power density.
How are sovereign-cloud regulations influencing build decisions?
They force hyperscalers to construct dedicated, locally staffed facilities inside target jurisdictions, particularly across Europe.
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