Hyperscale Data Centers Market to Reach USD 203.05 Billion By 2027; CAGR of 22.5% | Reports And Data 1
Rising investments in hyperscale data centers by cloud companies driving market growth to a significant extent.

Market Size – USD 39.41 Billion in 2019, Market Growth – at a CAGR of 22.5%, Market Trends –Growing demand for decreasing operational expenditure

The global hyperscale data centers market is forecast to reach a market size of USD 203.05 Billion by 2027, and register a significantly high revenue growth rate over the next seven years, according to a latest report by Reports and Data. Hyperscale data centers are transforming the global IT landscape, moving data from on-premises computer centralized data center hubs that provide economies of scale, and allowing hyperscale data centers to quickly scale-out server capacity. As a result, hyperscale data centers are garnering substantial investment from companies such as Google, Microsoft, Amazon, and Facebook. In 2018, capital expenditures on hyperscale data centers by the 20 largest hyperscale providers across the world increased by 43.0% to around USD 120 Billion. Furthermore, investors across the globe are investing significantly into hyperscale data centers, due to strong belief in a long-term growth prospect in digital infrastructure.

The COVID-19 impact:

Hyperscale data centers market witnessed a setback amid the COVID-19 pandemic, which was a key factor resulting in production and procurement delays till June 2020, and in postponement in construction of hyperscale data centers due to lack of workforce and supply chain disruptions.  The pandemic has also affected new hyperscale data center projects that were expected to start post-Q2 2020.

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Further key findings in the report

  • By industry vertical, the healthcare segment is projected to register the highest CAGR during the forecast period. Hyperscale data center services, such as installation, consulting, and maintenance, provide faster data center connections and improved scalability as healthcare organizations continue to progressively gather and store medical data and records. Also, growing use of electronic health records are also causative of the high demand for hyperscale data centers in the healthcare sector.
  • As colocation hyperscale data center is a multi-tenant arrangement, colocation providers reduce the overall costs associated with deploying latency, purchase of land, and security & power management. The cost benefits provided by collocation providers can be use by enterprises, especially SMEs, in business expansion.
  • The hyperscale data centers market in North America, led by the US, accounted for largest revenue share in the global market in 2019, owing to growth in hyperscale data center infrastructure solutions. Also, rapid adoption of cloud-based computing and increase in IT spending by various industry verticals in the region drive the market growth.
  • Key market participants include IBM Corporation, Cisco Systems Inc., Marvell, Hewlett Packard Enterprise, Huawei Technologies Co. Ltd., Dell Inc., NVIDIA Corporation, Ericsson, Lenovo, and Broadcom.


To identify the key trends in the industry, click on the link below: https://www.reportsanddata.com/report-detail/hyperscale-data-centers-market

For the purpose of this report, Reports and Data has segmented the global hyperscale data centers market on the basis of offering, industry vertical, end-use, and region:

  • Offering Outlook (Revenue, USD Billion; 2017-2027)
    • Solution
    • Service
  • Industry Vertical Outlook (Revenue, USD Billion; 2017-2027)
    • BFSI
    • IT & Telecom
    • Government & Defense
    • Manufacturing
    • Research & Academics
    • Retail
    • Media & Entertainment
    • Healthcare
    • Others
  • End-Use Outlook (Revenue, USD Billion; 2017-2027)
    • Cloud Providers
    • Colocation Providers
    • Enterprise
  • Regional Outlook (Revenue, USD Billion; 2017-2027)
    • North America
  1. U.S.
  2. Canada
  • Europe
  1. Germany
  2. UK
  3. France
  5. Rest of Europe
  • Asia Pacific
  1. China
  2. Japan
  3. South Korea
  4. Rest of APAC
  • MEA
  1. Saudi Arabia
  2. UAE
  3. Rest of MEA
  • Latin America
  1. Brazil
  2. Rest of LATAM


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