Hyperscale Datacenter Market Size

Hyperscale Data Center Market Analysis

The Hyperscale Datacenter Market size is estimated at USD 101.23 billion in 2024, and is expected to reach USD 130.98 billion by 2029, growing at a CAGR of 5.29% during the forecast period (2024-2029).

Hyperscale data centers have become highly powerful in recent years due to the increased computing and storage requirements to serve high-end applications. Business-critical apps are increasing, resulting in greater data center complexity. With the rising popularity of the web, e-commerce, social media, big data, computing, online gaming hosting, and Hadoop, the infrastructure needs to improve application speed, energy efficiency, and server density are increasing.

• In the recent past, data was considered the foundation of an emerging economy. Almost all enterprises use more data than before and will probably consume even more data in the future. This rapidly increasing data generation must be stored and accessed from somewhere. According to Cisco Systems, the global IP data traffic increased from 96,054 petabytes per month in 2016 to 150,910 petabytes per month in 2018, and it reached 278,108 petabytes per month last year.
• Moreover, the rising demand for over-the-top (OTT) applications through an app or service that can be availed over the internet bypass traditional distribution practices. Services available for over-the-top services are significantly related to the media and communication sector, which can be accessed at a lower cost and contributes to massive data growth, thereby driving the market.
• Furthermore, owing to the rapidly increasing adoption of IoT, cloud, and Big Data, analytics across multiple enterprises as a part of their digital transformation strategy, the burden on the data centers is also increasing, leading to growth in the hyperscale data centers globally.
• Enterprises that offer large cloud services, e-commerce, advanced research of pharmaceuticals, oil and gas, aerospace, stock exchange, and others have invested in the network infrastructure they require. However, sourcing security solutions to meet these needs presents a challenge since existing next-generation firewalls (NGFWs) still need to meet the massive scale and performance needs of hyperscale architectures.
• With the recent outbreak of COVID-19 worldwide, the demand for the data center is bifurcated with strong buying by hyperscale companies and cloud platforms. In contrast, there was a slowdown in spending by many enterprise users. Pandemic-driven leasing activity was concentrated in significant cloud markets. After the pandemic, the market is growing rapidly with the increased adoption of digitization and enterprises moving toward hybrid and remote working models.