HYPERSCALE DATA CENTER MARKET ANALYSIS

Market Challenges And Opportunities

Global Hyperscale Data Center Market Drivers:

Increase in adoption of cloud services to boost market growth

Large organizations around the world are increasingly inclining towards cloud solutions for organizing the work on cloud platforms. Different business sectors such as IT & Telecommunication, BFSI, consumer goods & retail, government, manufacturing, and healthcare are adopting cloud computing. In IT sector the adoption of cloud computing is growing for management and storing data. Thus, the demand for hyperscale data center in turn is likely to increase in the coming future, which is expected to propel growth of the global hyperscale data center market over the forecast period.

Rise in adoption of Big Data & IoT to fuel the market pace

Growing speed of internet along with rising number of internet users is leading to large amount of data being produced and growing penetration of social media with time. Many industries such as BFSI, healthcare, hospitality, and education are witnessing rise in amount of data generated, owing to technological developments as well as initiatives of digital transformation. Moreover, the fast development of data traffic can be attributed to the Internet of Things (IoT). These factors are therefore driving the need for hyperscale data centers. Thus, the market is anticipated to show substantial growth in the near future.

Global Hyperscale Data Center Market Opportunities:

Rise in adoption of Artificial Intelligence on data center infrastructure to create substantial growth opportunities in the global hyperscale data center infrastructure market over the forecast period. Several countries around the world have begun to adopt AI for various operations. Liquid cooling is the highly adopted cooling technology utilized in High-Performance Computing (HPC) in data centers for supporting AI and ML workloads. As a result, with increasing adoption of AI in data center infrastructure, the market is anticipated to witness various opportunities.

Increasing growth of rack power density is expected to produce business opportunities in the global hyperscale data center market over the forecast period. In data center designing, capacity planning, as well as cooling and power provisioning, the rack power density is one of the most important factors. The rack power density in IT equipment has increased in past few years. Due to rise in adoption of AI, Augmented and Virtual Reality, and IoT, which are compute-intensive workloads and rise in trend of cryptocurrency mining, the data storage and processing needs are growing. This in turn is creating multiple opportunities in the global hyperscale data center market during the forecast period.

Global Hyperscale Data Center Market Restraints:

Rise in carbon emissions to limit the market growth

As the complexity of data centers increases, the energy efficiency of these data centers will grow causing high emissions of carbon. Furthermore, the demand for data centers is increasing owing to rise in cloud-based computing and IoT, which also leads to rise in carbon emissions. The carbon emissions from data centers account for nearly 0.3% of the global carbon emissions. Thus, this factor is expected to hinder growth of the global hyperscale data center market over the forecast period. However, adoption of renewable energy by data center operators is likely to aid in growth of the market.

Security concerns of data centers to impede the market growth

The security threats have worsened over time with rise in use of technology for simplifying and speeding up the service offerings. The data center security is classified in two types, physical and logical security. Physical security consists of protecting data center assets from physical damage and logical security involves securing or protecting IT infrastructure from cyber-attacks. With increasing adoption of data centers, the rate of cyber-attacks are increasing all over the world. This in turn is hindering growth of the global hyperscale data center market over the forecast period.

• Rise in carbon emissions    
• Security concerns of data centers