Hyperscale Data Center Market Size

Hyperscale Data Center Market Size

Hyperscale Data Center Market was valued at USD 37.4 billion in 2022 and is projected to grow at a CAGR of over 25% between 2023 and 2032. Global expansion of the data center industry is propelling the industry growth. As businesses expand internationally, the demand for robust, scalable, and geographically diverse data center facilities increases. Hyperscale data centers offer large-scale, efficient, and flexible solutions, catering to diverse industries across regions. For instance, in September 2023, Princeton Digital Group established a 22MW hyperscale data center in Greater Jakarta, (Indonesia) to provide secure & scalable capacity for hyperscale companies and enterprises in industries such as cloud, content, commerce, AI & fintech. The facility also aims to support the growing data and computational needs of the enterprises with reliable & flexible infrastructure.

Surging investments and initiatives for digital transformation are fueling the hyperscale data center market expansion. As companies embrace digital transformation, the need for high-performance, scalable infrastructure grows. Hyperscale data centers play a pivotal role in supporting this transformation, offering the necessary computational power, storage, and reliability. For instance, in October 2023, Microsoft invested USD 3.2 billion in Australia with a focus on expanding AI and cloud computing infrastructure in the next two years. The new investment will help Microsoft grow its data centers across Canberra, Sydney, and Melbourne by 45%.

Initial high investments and installation costs pose a challenge in the hyperscale data center industry. The substantial capital required for setting up and equipping these large-scale facilities can deter some organizations from entering or expanding in this market. Additionally, the complexity and time-consuming nature of building & deploying these centers result in significant upfront expenditures, making it challenging for some entities to justify or afford the initial high costs associated with hyperscale data center infrastructure.