Hyperscale Data Center Market Analysis by Solution (Software, Storage, and Server); by User Type (Cloud, Colocation, and Enterprise); and by Industry (IT and Telecom, BFSI, Government, Energy, and Utilities, Retail & Manufacturing, Healthcare, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035

Buy Now Report ID: 4912 | Published Date: May 02, 2023

Global Hyperscale Data Center Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Hyperscale Data Center Market size is estimated to reach ~USD 1786.7 Billion by the end of 2035 by growing at a CAGR of ~29.32% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of the hyperscale data center market was ~USD 81.67 Billion. The growth of the market can be attributed to the growing volume of digital businesses worldwide owing to augmenting investment in digital transformation together with the rising need for data centers to enhance productivity, reduce operational costs and increase customer experiences. For instance, as per estimations, the direct digital transformation investment is anticipated to hit nearly USD 7 trillion with a CAGR of 18% from 2020 to 2023 as companies have been strategizing & investing to become future enterprises that are digital at scale.

Furthermore, factors that are believed to fuel the market growth of hyperscale data centers include the unprecedented growth in storage demand, driven by the increasing amount of video-intensive content, collaboration, multi-generational investments, and many other digital transformation applications together with developing infrastructure that is scalable and can maintain a high level of security. For instance, Broadcom Inc., the market leader in hyperscale video storage connectivity, in October 2022 announced the expansion of its silicon, software, and hardware storage connectivity products with enhanced performance, capabilities, and power. This expanded product portfolio is intended to aid hyperscale data centers to manage and maintain the storage connectivity they need to deliver video storage at scale. Additionally, the growing demand for hyperscale data centers over enterprise data centers by large companies owing to its economies of scale and custom engineering is predicted to present the potential for market expansion over the projected period.

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Global Hyperscale Data Center Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 81.67 Billion

Forecast Year Market Size (2035)

~ USD 1786.7 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global Hyperscale Data Center Market: Growth Drivers and Challenges


Growth Drivers

  • Increasing Demand & Utilization of Hyperscale Data Centers – which are massive business-critical facilities designed to efficiently support robust, scalable applications and can support thousands of individual servers that operate via high-speed internet connectivity. The increasing number of companies associated with big data production are favoring the development of such data centers which is why there is an increase in the number of hyperscale data centers worldwide. For instance, in 2021, the number of large data centers operated by hyperscale providers rose to over 700.
  • Radically Increasing Volume of Data – and the development of data-driven technologies such as artificial intelligence (AI), machine learning (ML), IoT, blockchain, and metaverse are anticipated to boost the growth of the hyperscale data center market worldwide. It is observed that approximately 2.5 quintillion bytes of data are generated worldwide every day.
  • Growing IT & Telecom Industry and the Expanding Data Centre Industry – is responsible for the rapid growth of the hyperscale data center market over the period of time. The data center industry was found to reach a valuation of around USD 1.2 billion in 2021, a 216% rise from USD 385 million in 2014.
  • Rise in the Use of Big Data Technologies - and an increasing number of big data-producing companies who are responsible for the evolution of hyperscale data centers as they have the ability to share the processing load and quickly add or remove servers or other resources as needed to meet capacity demands are propelling the market growth. As per recent data, more than 24% of companies use big data analytics worldwide.


  • Requirement of huge capital investment – As hyperscale data centers support thousands of servers, they tend to be much larger than the facility size of the average data center. Moreover, it also requires a number of specialized high-density server racks to accommodate more components, like power suppliers and hard drives, with enough space for engineers to swap them out and customize them as needed. With so much equipment to support, hyperscale facilities need a massive amount of power. Furthermore, the ability to customize and swap out components which are key to the flexibility of hyperscale facilities and equipment needs a commitment to personalized configuration. All these requirements to build a hyperscale data center are expensive, time-consuming, hampering the market growth.
  • High Cost of Implementation
  • Heavy Reliability on Automation Tools

Global Hyperscale Data Center Market Segmentation

The global hyperscale data center market is segmented and analyzed for demand and supply by user type into cloud, colocation, and enterprise. Out of the three types of users hyperscale data centers, the cloud segment is estimated to gain the largest market share of about ~58% in the year 2035. The growth of the segment can be attributed to the rising growth in the field of cloud computing as it facilitates data backup, disaster recovery, software development and testing, big data analytics, and many other advantages to large and small enterprises worldwide. For instance, it was observed that cloud computing spending rose by ~35% year-over-year in 2021. The spending in 2020 was recorded to be around USD 140 billion whereas it reached around USD 191.5 billion in 2021. Moreover, over 50% of enterprises are expected to use industry cloud platforms to accelerate their business initiatives by 2027. Hence, all these factors are anticipated to boost the segment growth in the upcoming years.

The global hyperscale data center market is also segmented and analyzed for demand and supply by solution into software, storage, and server. Amongst these three segments, the server segment is expected to garner a significant share of around ~46% in the year 2035, owing to the increasing focus placed by digital businesses on achieving optimized workload management with speed, agility, and security without having to deal with the challenges of training, integration and deployment, support, and maintenance. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

Our in-depth analysis of the global hyperscale data center market includes the following segments:

  By Solution

  • Software
  • Storage
  • Server

  By User Type

  • Cloud
  • Colocation
  • Enterprise

  By Industry

  • IT and Telecom
  • BFSI
  • Government
  • Energy, and Utilities
  • Retail & Manufacturing
  • Healthcare
  • Others

Global Hyperscale Data Center Market Regional Synopsis


The market share of hyperscale data centers in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the growing digitalization in the region as well as the strong existence of companies with the broadest data center footprint together with the increasing investment in advanced technologies in the North American region. It was found that over 50% of the world's hyperscale data centers were located in the U.S. in 2021. Moreover, the base of many large bid-data producing companies, including Microsoft, Amazon, Google, IBM, and Meta along with their expanding facilities of cloud provision is further expected to boost the market growth.

The Asia Pacific hyperscale data center market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The growth of the market can be attributed majorly to the growing base of big data-producing companies in the region together with the rising need to store, manage and process these vast volumes of data. As per research, it was found that in 2021, China was the next biggest contributor to hyperscale data center capacity after the US across the globe, and accounted for nearly 15% of the overall hyperscale data centers operated in that year.

Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The increasing investment in the field of technology as well as the growing development of IT infrastructure to promote digital transformation and growth of the region besides the rise in the number of data centers is estimated to boost the regional market growth in the upcoming years.

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Top Featured Companies Dominating the Global Hyperscale Data Center Market

    • Chindata Group
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • NVIDIA Corporation
    • Yotta Infrastructure
    •, Inc.
    • SanDisk Corporation
    • Hewlett Packard Enterprise Company
    • Cisco Systems, Inc.
    • Telefonaktiebolaget LM Ericsson
    • Intel Corporation
    • Broadcom, Inc.
    • Cavium, Inc.
    • Nlyte Software Limited


In The News

  • A subsidiary of Chindata Group and a leading data center provider across Malaysia, India, and Thailand, the Bridge Data Centres (BDC) together with ByteDance announced the opening of BDC’s first phase hyperscale data center (MY06) in Sedenak, Johor, Malaysia.
  • NVIDIA Corporation, a technology company known for designing and manufacturing graphics processing units (GPUs) announced about NVIDIA Spectrum-4. It is the next generation of its Ethernet platform which enables the extreme networking performance and robust security needed for data center infrastructure at scale.


Global Economic Impact

Request Insights
Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Author Credits:  Abhishek Verma, Hetal Singh

Key Questions Answered in the Report

1) What are the major factors driving the growth of the hyperscale data center market?

Ans: The increasing digital transformation of businesses, as well as the increasing adoption of technologies such as big data, cloud computing, AI, and others with prospering data centers, are the major factors driving the market growth

2) What would be the CAGR of hyperscale data center market over the forecast period?

Ans: The market size of hyperscale data centers is anticipated to attain a CAGR of ~29.32% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the hyperscale data center market growth?

Ans: The need for a huge amount of capital investment as well as high reliability on automation are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of hyperscale data center market in future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the hyperscale data center market?

Ans: The major players in the market are Chindata Group, NVIDIA Corporation, Yotta Infrastructure,, Inc., SanDisk Corporation, and Hewlett Packard Enterprise Company.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity, and the new products being launched into the market by the company.

7) What are the segments in the hyperscale data center market?

Ans: The market is segmented by solution, user type, industry, and by region.

8) Which segment captures the largest market size in the user type segment in the hyperscale data center market?

Ans: The cloud segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

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