US Hyperscale market is expected to grow in the next few years at a CAGR of ∼ 10% as a result of the development of more complex services and increased compute/storage demand: Ken Research

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Feb 15, 2023, 01:22 ET

The increased demand would necessitate data centers finding a method to fit more computer capability into fewer locations

IT and Telecom sector to remain the major end user for HSDCs in USA by 2027F due to rapidly growing internet use and connectivity.
More than 300 hyper scale data centres were being operated in 2022 in USA.
IT and Telecom sector to remain the major end user for HSDCs in USA by 2027F due to rapidly growing internet use and connectivity.

GURUGRAM, India, Feb. 15, 2023 /PRNewswire/ -- Increasing requirement of power density: The rack density in the most used hyper scale data centers has increased significantly over the past three years. Therefore, there are major gaps for power supply which will be fulfilled by Hyper scale data centers in the future.

Submarine cable projects along the East Coast: Hyperscale users experience huge traffic so they have invested largely in subsea cables, which connects data centers across continents, especially along the East Coast. This helps in avoiding huge traffic and lessens dependency on the nearest data center.

The roll out of 5G: A cellular network with significantly greater bandwidth compared to predecessors, will provide the infrastructure required for smart cities, advanced health services, sophisticated national security systems, drone delivery systems and autonomous vehicles. This foster data transfer from data centre to the clients.

Soaring Establishment Costs: Rising demand is causing capacity problems, challenges with land availability, and electric power supply delays. Because of the historically large volume of releasing activities, market absorption in the United States reached 1,087 MW in H1 2022, accounting for more than 95% of total demand in 2021.

Data Privacy Laws: State wise data privacy laws need to be followed by data centers that are built in the USA. The CCPA, modelled after the General Data Protection Regulation (GDPR), is aimed at protecting California residents' consumer rights, ensuring stronger privacy, and increased transparency.

Analysts at Ken Research in their latest publication "USA Hyperscale Data Center Market Outlook to 2027F – Driven by the growing adoption of remote work and surging demand of cloud computing solutions" by Ken Research observed that Hyperscale Data Centers market is an emergent market in USA at a growing stage even during the pandemic as well. The rising of digitization and quality telecommunication services, along with the reducing Setup Cost, is expected to contribute to the market growth over the forecast period. The USA Hyperscale Data Centers Market is expected to see high growth rate over the forecasted period 2023-2027F.

Key Segments Covered:

USA Hyperscale Data Center Market (Revenue, Number of Data Centers)

By Solutions Provided (by Revenue), 2022 & 2027

Storage
Cooling
Network
Support and Maintenance
Interconnection
Others such as IT Equipment's, supporting infrastructure and more

By Region (by Revenue), 2022 & 2027

Northern Virginia
Dallas
Silicon Valley
Chicago
Phoenix
NYC - NJ
Atlanta
Hillsboro
Austin
Washington
Seattle
Houston
Others such as Columbus and more

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By End Users (by Revenue), 2022 & 2027

IT and Telecom
BFSI
Healthcare
Entertainment & Media
Government and Defense
Retail & E-Commerce
Others such as Education, Airports and more

Key Target Audience

Data Centers Service Providers
Telecom Companies
Governments
Cloud Providers
Information Technology Companies
Telecommunication Service Providers
Enterprises

Time Period Captured in the Report:

Historical Period: 2017-2021
Base Year: 2022
Forecast Period: 2023-2027F

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Companies Covered:

Equinix
Digital Reality
CyrusOne
QTS
Switch
Iron Mountain
Cyxtera
NIT
Coresite
Flexential
Databank and more

Key Topics Covered in the Report:

USA Hyperscale Data Centers Overview
Internet Penetration in USA
Cross Comparison of Data Center Market in USA with Other Countries
Ecosystem of Hyperscale Data Center Industry in USA
Business Cycle of Hyperscale Data Center Market in USA
Construction of Hyperscale Data Centre
Features of Hyperscale Data Center Facilities
Data Center Trends Driving Digital Transformation
Market Segmentation of Hyperscale Data Center Industry in USA
Porter Five Forces Analysis: USA Hyperscale Data Center Market
Growth Drivers of USA Hyperscale Data Center Market
Mergers, Acquisitions and Key Investments in USA Hyperscale Data Center Market
Issues and Challenges in USA Hyperscale Data Center Market
Demand Analysis
Competitive Landscape
Future Market Size of Hyperscale Data Center Industry in USA
Future Market Segmentation
Analyst Recommendations

For more insights on the market intelligence, refer to below link:
USA Hyperscale Data Center Market

Related Reports By Ken Research:

Germany Hyperscale Data Center Market Outlook to 2027- Driven by the growing adoption of remote work and surging demand of cloud computing solutions

According to Ken Research estimates, the Germany hyperscale data center market – which grew at a CAGR of 21.7% in the period of 2017-2022P – is expected to grow at a CAGR of 8.9% in the forecasted period of 2022P-2027F, owing to Growing Volume of Big Data and Low costs to Enterprises. The 5G and 6G technology will push the adoption of IoT-enabled products in the Germany market. The market for big data and IoT is still in the nascent stage of growth. However, it has huge potential to be the strongest driver for Cloud Services Data Centre investments in the German market.

New business models are likely to emerge including a pay-per-use utility model, built to suit, etc. Location and design, easy scalability, security, infrastructure, sustainable practices and reliable partner are the key determinants for Cloud Services and Hyperscale Data Centre demand.

South Africa Hyperscale Data Center Market Outlook to 2027 – Driven by the Growing Adoption of Remote Work and Surging Demand of Cloud Computing Solutions

South Africa Hyperscale Data Centers Market is Expected to grow at a CAGR in double digits between 2022 and 2027E, one of the major determinants for the surging growth in coming years is attributed to the favourable government rules & regulations, formulated to support domestic and foreign investments in data and cloud infrastructure. Increased awareness on environmental impacts and government's aim to limit carbon footprints in upcoming years, will result in businesses adapting to a strategy to utilize least amount of energy. Teraco offering clients a global data center platform designed to enable digital businesses to scale within a highly connected data community across six Continents.

Philippines Data Center Market Outlook to 2027F- Driven by investment from the global players and the transition from colocation to hyperscale with high internet penetration

According to Ken Research estimates, the Philippines Data Center Market – which grew from approximately USD ~0.2 Bn in 2018 to approximately USD ~0.3 Bn in 2022 – is forecasted to grow further into USD ~0.6 Bn opportunity by 2027F, owing to the new government policies, rapid digitalization and cloud adoption. Roll out of 5G and increasing young population using the internet, Digital and instant payments and the demand for domestic data storages will drive the BFSI and IT/ITes share. The rising demand for decreased latency in data transfers and improved connectivity amid the increasing adoption of smart devices is likely to boost the demand for retail colocation data centers.

Morocco Data Center Market Outlook to 2027F- Demand for Low Cost Data Centers along with Higher Capacity is expected to grow in the near future

According to Ken Research estimates, the Morocco Data Center Market – which grew from approximately USD 37.0 Mn in 2017 to approximately USD 49.0 Mn in 2022 – is forecasted to grow further into a USD 73.0 Mn opportunity by 2027F, owing to digital transformation in the country and rising investment to expand capacity. The number of internet users in Morocco increased by 2.9 million which is approximately 13% from 2019 and 2020. The market is expected to increase due to trends of a rising middle class in the country and accelerated urbanization. The IT/ITes sector is expected to hold the highest share of the market due to increasing internet consumption and the expansion of foreign IT companies in the region.

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SOURCE Ken Research