Hyperscale Data Center Market Size to Reach Revenues of Over $108 Billion by 2025 - Arizton

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Jun 16, 2020, 11:00 ET

CHICAGO, June 16, 2020 /PRNewswire/ -- 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 is expected to grow at a CAGR of over 2% during the period 2019–2025.

Key Highlights Offered in the Report:

Digitalization and data regulation are aiding in exponential expansion activities by global hyperscale cloud service providers.
The market witnessed around 115 new hyperscale facilities through projects opened and under construction in 2019. These projects are built with a minimum power capacity of 15 MW.
The US leads the hyperscale data center market and will bring $30 billion revenue opportunities for construction contractors and sub-contracts between 2020-2025.
In APAC, China and Hong Kong contribute to around 45% of the investment, whereas India and Indonesia are the fastest growing hyperscale markets in the region.
OCP-Ready colocation facilities to facilitate ODM infrastructure adoption among enterprise and government data center operators.

Key Offerings:

Market Size & Forecast by Revenue | 2019−2025
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and geography
Competitive Landscape – List of 21 IT infrastructure providers, 25 construction service providers, 25 support infrastructure providers, 26 data center investors, and 12 new entrant data center investors

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The global hyperscale data center market is primarily dominated by colocation, internet, and cloud data center service providers. There are also many cloud-based services providers that depend on the construction of facilities by colocation providers to colocate space on a wholesale basis. This will aid cloud providers operating worldwide to establish cloud regions, thereby serving customers quickly and efficiently. In terms of construction, hyperscale operators are investing high capital in the market annually. Also, colocation providers are building hyperscale facilities spanning over 100,000 square feet with a rack power density of up to 50 kW.

The rapid increase in the spread of COVID-19 in March 2020, across Asian and European countries and the US will result in production and procurement delays till Q2 2020. The construction projects that were expected to be completed between March to June 2020, might be postponed by up to 3 months, depending on the return of the construction workforce to full strength and resumption of full-scale supply chain processes. The pandemic might affect new hyperscale projects that are likely to get underway in the Q2 2020, resulting a declining market scenario for 2020.

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

AI Boosts Liquid Immersion & Direct-to-Chip Cooling Adoption
Increasing Deployment of Software-Defined Data Center
Increased Adoption of OCPs & Hyperscale-specific Infrastructure
Increasing Penetration of 200GbE & 400GbE Switch Ports

The study considers the present scenario of the hyperscale data center market and its market dynamics for the period 2019−2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The study offers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent ones operating in the market.

Hyperscale Data Center Market Segmentation

The global hyperscale data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and geography. The demand for servers suitable for cloud computing environments will continue to grow as service providers expand their presence globally. There will be an increase in demand for servers with multicore processors, and memory will grow as the average number of virtual machines per physical server continues to rise. The US market recorded a growth of around 302% in the server market revenue with the shipment growing at around 40% in 2029. The increase in number of OCP-Ready facility will increase the procurement of ODM infrastructure among enterprise hyperscale data center operators.

Innovations in the OCP community have resulted in the launch of 12VDC UPS. These UPS systems constitute a rack architecture, where one UPS rack supports 6 IT racks in the hyperscale data center environment. The procurement of lithium-ion UPS systems will continue to grow among hyperscale data center operators to reduce the OPEX through low maintenance.

The use of indirect evaporative coolers and air/water-side economizers will continue to grow in countries that experience cold climatic conditions for a minimum of 5,000 hours per year. Data centers in Southeast Asia, India, the Middle East, and Africa are likely to prefer chilled water systems or a combination of both air and water-based cooling techniques. The use of dual water feeds in facilities with on-site water treatment plants is gaining popularity across hyperscale deployments.

Data centers established in South Western US are incorporated with energy-efficient water-based cooling systems. The on-site water treatment plants that save a minimum of 30% of the water consumed.

In the US, a majority of states provide tax incentives that includes sales tax, property tax and job-based tax incentives. To attract hyperscale investment, several states are likely to offer tax incentives during the forecast period. In Western Europe, the growing demand for data centers has increased revenue opportunities for multiple contractors and sub-contractors. However, a major challenge for several contractors in the region is the lack of skilled workforces to manage multiple hyperscale data center projects.

Most projects are built in collaboration with global data center construction contractors and local sub-contractors. China will lead greenfield data center construction compared to Hong Kong, where brownfield developments is popular due to the space shortage during the forecast period.

Segmentation by IT Infrastructure

Servers
Storage
Network

Segmentation by Electrical Infrastructure

UPS
Generators
Transfer Switches & Switchgears
Rack PDUs
Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

Cooling Systems
Racks
Other Mechanical Infrastructure

Segmentation by General Construction

Building Development
Installation & Commissioning Services
Building Designs
Physical Security
DCIM

Insights by Geography

The major drivers for the hyperscale data center market growth and demand include rapid advancements in IoT devices, condensed cost of ownership, and the growing number of applications across several sectors. The US is the major market in the North America that is witnessing high growth in the hyperscale data center market. In North America, the development of hyperscale data centers is of Tier III and Tier IV standards.

North America has always been a strong driver for the data center construction market. Multiple hyperscale facilities are being powered by renewable energy sources to overcome issues with power consumption and carbon emission.

In Europe, Germany continued to dominate the market, with strong contribution from the UK, Denmark, Russia, the Netherlands, Belgium, and Italy. APAC is expected to be the fastest growing market for hyperscale data center with high contribution from China, India, Australia, Singapore, Hong Kong, and India. The market has witnessed the entry of multiple new entrants in the colocation space with plans to build wholesale colocation spaces for hyperscale operators.

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Segmentation by Geography

Americas

US
Canada
Latin America

EMEA

Nordic
MEA
Western Europe

APAC

China & Hong Kong
Australia & New Zealand
India
Southeast Asia
Rest of APAC

Insights by Vendors

The competition among cloud service providers to establish multiple cloud regions and increase the customer base for service offerings is driving the investments in hyperscale data center construction. Also, colocation providers are investing significantly in the hyperscale development, which is increasing the competition among themselves along with several new entrants to the market. The infrastructure data center suppliers in the market is becoming increasingly competitive YOY. Infrastructure suppliers are innovating their product portfolio to increase their market shares.

Prominent IT Infrastructure Providers

Arista
Atos
Broadcom
Cisco
Dell Technologies
Extreme Networks
Hewlett Packard Enterprise (HPE)
Hitachi Vantara
Huawei
IBM
Inspur Group
Inventec
Juniper
Lenovo
NEC
NetApp
Oracle
Pure Storage
Quanta Cloud Technology (Quanta Computer)
Super Micro Computer
Wistron (Wiwynn)

Prominent Support Infrastructure Providers

ABB
Alfa Laval
Airedale Air Conditioning
Asetek
Bosch Security Systems (Robert Bosch)
Caterpillar
Cummins
Condair Group
Delta Group
Eaton
Euro-Diesel (KINOLT)
Green Revolution Cooling (GRC)
Hitech Power Protection
KOHLER (SDMO)
Legrand
Nlyte Software
Nortek Air Solutions
Mitsubishi Electric Corporation
MTU On Site Energy
Piller Power Systems
Rittal
Schneider Electric
STULZ
Trane
Vertiv

Prominent Construction Contractors

AECOM
Arup Group
Bouygues
Cap Ingelec
Corgan
DPR Construction
Fluor Corporation
Fortis Construction
Gensler
Gilbane Building
HDR Architecture
Holder Construction
ISG
Jacobs Engineering Group
Jones Engineering Group
Linesight
Mace Group
Mercury Engineering
Morrison Hershfield
Mortenson
M+W Group (Exyte)
Red-Engineering
Structure Tone
Syska Hennessy Group
Winthrop

Prominent Data Center Investors

Apple
AWS (Amazon Web Services)
Aligned Energy
Ascenty
Aruba SpA
Bridge Data Centers
CyrusOne
Colt Data Centre Services (COLT DCS)
Compass Data Centers (Root Data Center)
Cologix (Colo-D)
COPT Data Center Solutions (COPT DCS)
CtrlS
Digital Realty
Equinix
Facebook
GDS Holdings
Google
Global Switch
Hypertec
Microsoft
NTT Communications
NDC Data Center
ST Telemedia Global Data Centres
Stream Data Center
Turkcell
Urbacon Data Center Solutions
Vantage Data Center

New Entrants Data Center Investors

Adani Group
Chayora
EdgeCore Internet Real Estate
Echelon Data Centers
NDC Data Centres
GIGA Data Centers
PointOne
Prime Data Centers
Regal Orion
Space DC
Stack Infrastructure
Yotta Infrastructure Solutions

Key Questions Answered

What is the global hyperscale data center market size and forecast
Who are the leading hypescale data center developers in the US, Europe, and APAC
The global hyperscale data center market share and leading vendors?
What are the factors impacting the growth of the hyperscale data center market forecast?
What are the drivers, trends, and restraints in the market?

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