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Hyperscale Data Center Market - Global Outlook and Forecast 2019-2024

Hyperscale Data Center Market - Global Outlook and Forecast 2019-2024

  • November 2019
  • 374 pages
  • ID: 5628212
  • Format: PDF
  • By Arizton

Summary

Table of Contents

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.

The following factors are expected to contribute to the growth of the hyperscale data center market during the forecast period:
•Data Regulation to Increase Facilities Investment
•Increasing Procurement of Renewable Energy for New Facilities
•Increase in Deployment of Software-Defined Data Center (SDDC)

The report considers the present scenario of the hyperscale data center market during the forecast period and its market dynamics for the period 2018'2024. It covers a detailed overview of several market growth enablers, restraints, and trends. The report profiles and examines leading companies and several other prominent companies operating in the 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. The labor cost is high in the Middle East due to the availability of a skilled workforce. However, the labor cost in Africa is low, with the growing need for skilled professionals as construction activities increase. The use of renewable energy such as solar panels will grow across the region because of the extreme climatic conditions. In terms of general construction, China is leading in the greenfield construction of data centers in APAC. China has strong landmass and favorable climatic conditions to develop multiple hyperscale facilities across the country. Beijing and Shanghai are the leading hubs for data center operations. However, it is expected that most hyperscale development will be carried out in rural areas during the forecast period.

Market Segmentation by IT Infrastructure
•Server
•Storage
•Network
Market Segmentation by Electrical Infrastructure
•UPS Systems
•Generators
•Transfer Switches and Switchgears
•Rack PDUs
•Others
Market Segmentation by Mechanical Infrastructure
•Cooling Systems
•Racks
Market Segmentation by General Construction
•Building Development
•Installation and Commissioning Services
•Building Designs
•Physical Security
•DCIM

Geographical Insights
In the Americas region, the US is the primary market for hyperscale data center development due to high investments from the cloud, internet, and wholesale colocation service providers. Canada is witnessing an increased growth from global colocation and cloud service providers. The growth in Latin America is largely dependent on the strength of internet connectivity in the continent. There will be a large investment by hyperscale developers, and the high adoption of modular facilities is likely to boost the Latin America market during the forecast period.

Market Segmentation by Geography
•Americas
oUS
oCanada
oLatin America
•APAC
oChina and Hong Kong
oAustralia and New Zealand
oIndia
oSoutheast Asia
oRest of APAC
•EMEA
oWestern Europe and Nordic
oMiddle East and Africa

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.

Key Company Profiles
•Apple
•Amazon Web Services (AWS)
•Alibaba Group
•Facebook
•Google
•Microsoft
•NTT Communications
•OVH
•Tencent

Other Prominent Vendors
•Aligned Energy
•Ascenty
•Canberra Data Centers
•Chayora
•COPT Data Center Solutions
•CyrusOne
•Data Foundry
•Digital Realty
•EdgeConnex
•EdgeCore
•Equinix
•Fujitsu
•GDS Services
•GIGA Data Centers
•Global Switch
•Reliance Communications
•Sabey Data Center
•Scaleway Datacenter (Iliad Data Center)
•STT GDC (VIRTUS)
•Telia Company (TeliaSonera)
•T-Systems
•VADS Berhad
•Vantage Data centers

Key Market Insights Include
The report provides the following insights into the hyperscale data center market for the forecast period 2019–2024.
1.It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the hyperscale data center market.
2.The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
3.It offers a complete overview of segments and the regional outlook of the hyperscale data center market.
4.The report offers a detailed overview of the vendor landscape, competitive analysis, and key strategies to gain a competitive advantage.

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