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Hyperscale Data Center Market Analysis

Report ID: GMI2594
Published Date: Nov 2023
Report Format: PDF

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Hyperscale Data Center Market Analysis

Hyperscale Data Center Market, By Component, 2021 – 2032, (USD Billion)

Based on component, the market is divided into solution and service. The solution segment is expected to grow at a CAGR of around 25.5% during the forecast period. The segment is anticipated to witness growth over the forecast period due to the increasing demand for specialized services. As hyperscale facilities expand, there is a surge in the need for tailored solutions including security, networking, and managed services. Providers are expected to offer comprehensive solutions, such as robust security measures, high-speed networking solutions, and managed services, that cater to the specific needs of hyperscale data center operations, thus driving growth in this segment.

Hyperscale Data Center Market Share, By Application, 2022

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Based on application, the market is categorized into BFSI, retail & e-commerce, government, IT & telecom, entertainment & media, and others. The BFSI segment was valued at over USD 8.5 billion in 2022. The BFSI segment is anticipated to grow significantly in the hyperscale data center market due to stringent security, compliance requirements, and increased digital transformation efforts. BFSI firms increasingly rely on hyperscale data centers to manage vast amounts of financial data securely, enhance customer services, adopt cloud-based solutions, and meet regulatory demands. The growing reliance on digital services in the BFSI sector is driving the need for scalable and secure hyperscale data center infrastructures.

U.S. Hyperscale Data Center Market Revenue, 2021 -2032, (USD Billion)

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North America held a dominant market share of over 35% in 2022. Technological advancements, high demand for cloud services, increasing digital transformation initiatives, and the presence of major tech companies in North America drive the need for large-scale, efficient data centers. Favorable regulatory environments and rising investments in infrastructure are boosting the expansion of hyperscale data centers, positioning North America as a key hub for further market expansion. For instance, in September 2023, Scala Data Centers launched its first hyperscale data center in Tepotzotlan, Mexico. This move aims to enhance Scala's footprint and cater to the growing demand of large cloud & content providers in the region.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Market size for hyperscale data center was worth USD 37.4 billion in 2022 and is estimated to expand at over 25% CAGR from 2023 to 2032 driven by the global expansion of several businesses along with surging demand for robust, scalable, and geographically diverse data center facilities.

Hyperscale data center solutions industry is set to expand at 25.5% CAGR from 2023-2032 owing to the ongoing expansion of hyperscale facilities and the propelling need for tailored solutions including security, networking, and managed services.

North America held more than 35% revenue share of the hyperscale data center industry in 2022 and is estimated to expand at robust pace through 2032 attributed to the increasing digital transformation initiatives in the region

Some of the leading hyperscale data center companies are Alphabet Inc., Amazon Web Services, Broadcom Ltd., Cisco Systems Inc., Dell Inc., Equinix Inc., Huawei Technologies Co., Ltd., IBM Corporation, Microsoft Corporation, and Schneider Electric SE.