Boom in hyperscale data centres: The future of digital infrastructure

The global hyperscale data centre market, valued at USD 58.3 billion in 2024, is anticipated to grow at a CAGR of 26.3%, reaching approximately USD 591 billion by 2034, as per a report from Global Market Insights Inc.

This remarkable growth is largely attributed to the increasing demand for digital services, cloud computing, artificial intelligence (AI), and big data analytics. Hyperscale data centres offer massive scalability and energy efficiency, making them indispensable for technology providers, corporations, and government agencies. The rise in data consumption from sources like social media, IoT devices, and enterprise applications further amplifies the need for these advanced systems globally.

While the COVID-19 pandemic initially disrupted construction and equipment supply in 2020, it subsequently accelerated market growth. The global shift to remote work, e-learning, and increased use of online services in 2021 prompted hyperscale providers to expand networks, edge computing, and hybrid cloud infrastructures. Moreover, automation and remote management tools have become essential in operating efficiently amid workforce challenges, underpinning services such as AI-powered data management and workload orchestration.

In 2024, the market's solutions segment accounted for 78.8% and is projected to grow at a rate of 27.1% through to 2034. The segment's lead is due to the demand for scalable, high-performance IT infrastructure, encompassing servers, storage, networking hardware, and power and cooling solutions, needed for hyperscale settings. The burgeoning sectors of cloud computing, AI, and data analytics drive investments in robust, energy-efficient systems.

Enterprises held the largest market share of 55% in 2024, forecasted to grow at a CAGR of 24.8% until 2034. This is driven by the adoption of private and hybrid cloud infrastructures, supporting mission-critical workloads. Key sectors, including banking, healthcare, and telecom, leverage hyperscale systems for modernisation, agility, and cybersecurity.

The United States dominates the hyperscale data centre market, holding an 81.6% share in 2024, generating USD 17.5 billion. The country's advantage is supported by its strong cloud computing framework, extensive digital infrastructure, and substantial investment from major technology firms. It remains the pivotal hub for hyperscale operations and cloud adoption.

Leading companies in the hyperscale data centre market include Microsoft, IBM, Amazon Web Services, and Huawei Technologies. These firms are bolstering their market presence by expanding globally, investing in innovative technologies, and diversifying services. Emphasis is placed on automation, AI-driven data management solutions, and edge computing, aiming to optimise efficiency, reduce costs, and meet the growing demand for flexible, scalable solutions.