‘No End In Sight for Global Hyperscale Data Center Market Growth’

hyperscale dcs 20181The number of large data centers operated by hyperscale providers rose by 11% in 2018 to reach 430 by year-end, according to new data from Synergy Research Group. In addition to the 430 current hyperscale data centers Synergy Research has the visibility of a further 132 that are at various stages of planning or building. There would be no end in sight to the data center building boom.

The global hyperscale data center count jumped to 43 in 2018, while another 132 hyperscale data centers are in the pipeline. In 2018, the Asia-Pacific and EMEA regions featured most prominently in terms of new data centers that were opened, but despite that the US still accounts for 40% of the major cloud and Internet data center sites. The next most popular locations are China, Japan, the UK, Australia and Germany, which collectively account for another 30% of the total. Among the hyperscale operators, Amazon and Google opened the most new data centers in 2018, together accounting for over half of the total.

The research is based on an analysis of the data center footprint of 20 of the world’s major cloud and Internet service firms, including the largest operators in SaaS, IaaS, PaaS, search, social networking, ecommerce and gaming.

AWS, Microsoft, Google, IBM, Alibaba, Oracle

On average each of the 20 firms had 22 data center sites. The companies with the broadest data center footprint are the “leading” cloud providers – Amazon (AWS), Microsoft, Google and IBM. Each has 55 or more data center locations with at least three in each of the four regions – North America, APAC, EMEA and Latin America.

Alibaba and Oracle also have a notably broad data center presence. The remaining firms tend to have their data centers focused primarily in either the US (Apple, Facebook, Twitter, eBay, Yahoo) or China (Baidu, Tencent).

“Hyperscale growth goes on unabated, with company revenues growing by an average 24% per year and their capex growing by over 40% – much of which is going into building and equipping data centers,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “There is no end in sight to the data center building boom.”