The "Hyperscale Data Center Market - Global Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.
The hyperscale data center market is expected to grow at a CAGR of over 9% during the period 2018-2024
Hyperscale construction in terms of area and power will be high in the US, the UK, Germany, China & Hong Kong, Ireland, Brazil, Canada, the Netherlands, Singapore, Japan, South Korea, Australia, India, France, Denmark, Sweden, and Norway. Adoption of Cloud-based Services and & big data driving hyperscale data center surge.
Tax incentives offered by regulatory agencies worldwide are likely to play an important role in the development of hyperscale facilities construction. A majority of development over the past few years has been concentrated in those regions that offer tax incentives. These tax breaks yield high savings for service operators. For instance, Google negotiated a 100%, 15-year sales tax exemption for a $600-million data center in New Albany, Ohio, the US in 2018.
Similarly, Facebook is likely to receive about $150 million through property tax incentives for building a facility in Utah. Tax incentives are being offered to grow the digital economy through multi-million-dollar investments. Many developing countries are looking to allure investors by providing incentives and land for development during the forecast period. Tax incentives, which are a major criterion for the site selection process, help to generate business opportunities for local sub-contractors. Hence, the availability of attractive tax incentives is expected to drive the hyperscale data center market.
Hyperscale Data Center Market: Segmentation
This research report includes detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and geography. The demand for servers in the cloud environment is likely to grow during the forecast as service providers are expanding their presence globally. The server market is expected to witness demand for servers with multicore processors. Storage capacity will grow as the average number of virtual machines per physical server continues to grow. The US is likely to witness growth in the server segment and shipment is projected to increase during the forecast period.
The use of Lithium-ion UPS systems will continue to grow among hyperscale data center operators during the forecast period. Vendors are continually innovating their UPS solutions to increase efficiency and reduce cost. Diesel generators are likely to witness growth in the US. However, gas and bi-fuel generators are expected to witness steady growth due to the increased awareness of carbon emissions, especially in the US.
The adoption of switchgears will grow because of the increased construction of large and mega facilities that require medium and high-voltage switchgears. The adoption of basic rack PDUs is expected to decline with the higher adoption of metered, monitored, switched, and metered-by outlet PDUs.
The use of indirect evaporative cooler and air/water-side economizers is likely to continue as most hyperscale facilities are being developed in countries that experience cold climate for more than 4,000 hours per year. The facilities in Southeast Asia, China, India, the Middle East, Africa, and Latin America are likely to prefer chilled water systems.
A majority of the existing development in the US is being carried in locations that offer free cooling of a minimum of 4,000 hours. The facilities established in the South Western US are incorporated with energy-efficient water-based cooling systems, with on-site water treatment plants saving a minimum of 30% of water consumed. In the US, a majority of states provide tax incentives for data centers; also, they provide job-based tax incentives.
The growing hyperscale construction will be a major boost to contractors and sub-contractors operating in the market. Most projects established in MEA are of greenfield development type.
Key Vendor Analysis
The competition in cloud service providers to establish multiple cloud regions and increase the customer base for their service offerings is increasing the investment in hyperscale facilities construction. The market for infrastructure suppliers is becoming competitive YOY.Infrastructure suppliers are continuously innovating their product portfolio to increase their revenue shares. The competition will be high in infrastructure providers supplying mission-critical and high-performance infrastructure solutions.
Schneider Electric, Eaton, Vertiv, and ABB are leading the electrical infrastructure market. Cummins, Caterpillar, and MTU On Site Energy have a strong presence in the generator market.
Market Growth Enablers
- Cloud Services & Big Data Driving Hyperscale Data Center Surge
- IoT & 5G Deployment to Drive Hyperscale Development
- Tax Incentives to Boost Hyperscale Investment
- Wholesale Colocation Demand Fuels Facilities Development
- Data Regulation to Increase Hyperscale Data Center Investment
Market Growth Restraints
- Location Constraints for Hyperscale Data Center Construction
- Data Center Security Challenges
- Dearth of Skilled Workforce
- Increased Carbon Emissions from Data Centers
- Increase in Outages among Cloud Data Centers
Market Opportunities & Trends
- Increasing Procurement of Renewable Energy for Data Centers
- Software-defined Power to Monitor & Automate Power Infrastructure
- Increasing Deployment of Software-Defined Data Center (SDDC)
- Increased Adoption of OCPs & Hyperscale-specific Infrastructure
- Innovative Concepts such as Underwater & Tropical Data Centers
- Increasing Penetration of 200GbE & 400GbE Switch Ports
Key Company Profiles
- Amazon Web Services (AWS)
- Alibaba Group
- NTT Communications
Other Prominent Vendors
- Aligned Energy
- Canberra Data Centers
- COPT Data Center Solutions
- Data Foundry
- Digital Realty
- EdgeCore Internet Real Estate
- GDS Services Ltd
- GIGA Data Centers
- Global Switch
- Reliance Communications
- Sabey Data Center
- Scaleway Datacenter (Iliad Data Center)
- STT GDC (Virtus)
- Telia Company (TeliaSonera)
- VADS BERHAD
- Vantage Data Centers
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