Market Trends of Hyperscale Datacenter Industry
This section covers the major market trends shaping the Hyperscale Datacenter Market according to our research experts:
Growing Demand for Cloud Computing and Other Hight Performance Technologies Driving the Market
- The demand for cloud-based solutions is surging, owing to the growing application of technology and consumer propensity towards the cloud. This technology allows the user to access the data from remote locations. The increasing realization among companies about the importance of saving money and resources by moving their data to the cloud rather than building and maintaining on-premise infrastructure is driving the demand for cloud-based solutions.
- Owing to these benefits, large enterprises and SMEs are increasingly adopting cloud-based solutions. Over the next few years, cloud computing and virtualization will be able to save the setup cost of software by dividing it, ultimately leading to decreasing the use of hardware.
- Enterprises and government organizations worldwide are moving from test environments to placing more work-critical workloads and compute instances into the cloud. Similarly, for consumers, cloud services offer anywhere and easy access to content and services on multiple devices.
- The demand for data storage and managed hosting services is expected to increase dramatically across Indonesia. Jakarta's two Data Centers will accommodate clients' needs, particularly cloud service providers and the financial industry, which require flexible facility designs to help them achieve their business objectives. In April this year, NTT Ltd, one of the leading IT infrastructure and services companies, expanded its hyperscale data center footprint by launching the largest data center in Indonesia (Jakarta's third data center) to support the growing digital economy in Southeast Asia.
- One of the most common methods for businesses to use cloud computing is to use the numerous "as-a-service" alternatives provided by many major global technology corporations. These services give businesses access to computing power, software, and other cloud-related operations without the need for on-premises infrastructure. According to Flexera Software, as of March this year, 46% of respondents are already running significant workloads on Amazon Web Services.
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Germany is Expected to Hold Major Market Share
- European digital traffic increased tremendously due to the surge in electronic transactions, systems, and digital information during the global pandemic. When paired with the rapid rise of new firms and the ever-increasing population, this boosts demand for hyperscale data centers.
- Over the past few years, the German data center market has grown notably with the rise in the development of hyperscale data centers, and owing to the implementation of GDPR, which has been driving investments and the regional cloud network development in Germany.
- The growing usage of the cloud and investments encourage many players in the country to improve cloud infrastructure in Germany, which drives the market's growth. For instance, in August 2021, Google announced it would invest EUR 1 billion by 2030 to enhance renewable energy use and develop its cloud computing infrastructure in Germany.
- In June this year, Vantage data centers announced the start of operations at two greenfield campuses in Berlin and Warsaw. The new sites are part of Vantage's USD 2 billion European expansion to offer hyperscalers and cloud providers with data center campuses in two sought-after markets.
- Moreover, in February this year, A 112-megawatt, 1.2 million sqft (108k sqm), hyper-scale data center campus is being built by Cloud HQ, a hyper-scale data center developer and operator in the US and Europe, in Offenbach, Germany, a city that borders Frankfurt to the southeast. With a total investment of EUR 1.1 billion (USD 1.15 billion), CloudHQ's Frankfurt data center campus will be one of Germany's biggest hyperscale data centers once fully constructed.
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