Hyperscale Data Center Market is expected to exceed USD 65 billion by 2025. Rapid technological advancements and innovations in the industry are accelerating the adoption of different IT solutions such as power, UPS, cooling, and DCIM. The manufacturers in the hyperscale data center market are continuously engaged in introducing advanced technologies that allow businesses to implement sustainable business techniques and reduce their overall carbon footprint. For instance, Aligned Energy offers data center cooling solution that removes heat instead of forcing cool air into the data hall. The cooling technology is highly-efficient in any climate with a PUE of 1.15. Similarly, DCIM solutions offered by hyperscale data center industry players allow businesses to manage the effectiveness of their IT power & cooling devices to ensure sustainable IT operations.
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Moreover, increasing inclination of businesses toward colocation services will drive the hyperscale data center market growth over the forecast timespan. Enterprises are moving towards cost-effective techniques to reduce the overall capital expenditure of the business, encouraging them to depend on colocation facilities. High maintenance & installation costs of mega facilities will increase the total IT budget of businesses. Colocation facilities offer these enterprises IT space & solutions, reducing the high maintenance costs of hyperscale devices. These colocation providers are highly investing to construct mega facilities for managing their customers IT equipment. For instance, in February 2019, CtrlS invested around USD 300 million to construct a mega IT facility in India.
The hyperscale data center market is expected to witness high growth due to the rapid adoption of solutions in the IT & telecom sector. The increasing penetration of smartphones and high internet usage are encouraging telecom operators to implement mega facilities for the storage & processing of large telecom data. The companies are investing highly to construct these IT facilities for their business expansion and global coverage. For instance, in December 2018, Liquid Telecom announced its investment of around USD 400 million in Egypt as a part of its major partnership with Telecom Egypt for constructing network infrastructure & IT facilities.
The demand for rack-based Power Distribution Units (PDUs) is growing rapidly in the hyperscale data center market due to their high availability and high-power ratings features. These PDUs can be incorporated with all types of rackmount equipment without interrupting the power supply. It helps organization to reduce power consumption, thereby enhancing the efficiency of an IT facility. These solutions also help in reducing an organization's carbon footprint. It is being widely adopted by businesses for enhancing the business efficiency. For instance, in February 2019, Eaton Corporation launched its high-density rack PDU platform in North America with advanced configurability features for customers.
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The North America hyperscale data center market is predicted to grow substantially over the coming years due to the increased interest of global companies such as Amazon, Facebook, and Google to establish and expand their business base in the region. Rapid urbanization and technological adoption are the major factors that are attracting these multinational companies to set up their large-scale facilities here. Moreover, the increased business competition in the region makes it necessary for global businesses to serve their customers effectively with better infrastructure technologies, augmenting the hyperscale data center market. Microsoft Corporation established mega facilities in Illinois, Washington, and Texas. Similarly, Facebook has its IT facilities in Oregon, Iowa, and North Carolina.
Key players operating in the hyperscale data center market include Broadcom Ltd., Cavium, Inc., Cisco Systems, Inc., Dell, Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Lenovo Group Ltd., Microsoft Corporation, NVIDIA Corporation, Sandisk LLC, and Schneider Electric SE, among others. Players in the industry are manufacturing business-specific solutions which enables customers to customize solutions based on enterprise requirements. Moreover, increasing technological advancements and innovations in various industry sectors are expected to be a major contributor for the market size.
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