Hyperscale Data Center: Massive Infrastructural Transformations Ensuring Better Connectivity between Devices and Enterprises

Hyperscale Data Center Market

Hyperscale data center are a specialized data center infrastructural offering that are designed to hold multiple storage servers in a single unit, providing different organizations with little or no downtime due to their large-scale high quality component integration. These data centers have multiple power backups to ensure that the facility is not shut down and that no loss of data occurs. This offering can also be customized according to the individual needs and demand of an enterprise/user offering certain performance benefits such as greater efficiency in cooling of data servers, optimal air flow and energy-efficiency.

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The main factor behind the growth of the market is:

  • Decrease in the operational expenditure and capital expenditure: Although, the establishment of hyperscale data centers initially very high but the return on investments in the long term is also something to take into account. This is because the long-term benefits for any business organization outweigh the initial costs of establishing these infrastructures. At the rate at which various organizations are generating data, they will soon run out of storage spaces at their existing on-premise facilities, ensuring that the decision to invest in hyperscale data centers will provide significant benefits in the long run as they will provide different enterprises with massive infrastructural offering
  • Growing demand of cloud based technology at various level of the organization and government agencies: Wide-spread adoption of cloud-based storage solutions in different enterprises have given rise to the need of cloud service providers to be equipped with large-scale storage units or in this hyperscale data centers to ensure high-quality performance levels to their customers. They are focused on developing greater capacity of their businesses and are therefore taking part in availing hyperscale data centers

The market is segmented on the basis of component as solutions, services; end-user as cloud providers, colocation providers, enterprises; data center size is segmented into small & medium-sized data centers, large data centers; industry into BFSI, IT & Telecom, research & academics, government & defense, retail, manufacturing, healthcare, media & entertainment, others.

Some of the recent market developments are as follows:

  • In July 2019, Equinix, Inc. announced that they had established a joint venture with GIC for the development of hyperscale data centers in European region. This joint venture will enable hypserscale consumers and organizations to meet their significant workload needs. These data center offerings will be termed as “xScale” and will be integrated with Equinix’s interconnectivity services helping improve the overall performance of enterprises’. This joint venture will enable that the company has optimal investment capital for the establishment and successful operations of six new xScale data centers
  • In June 2017, Nexans announced the launch of a new business unit “Nexans Data Center Solutions (NDS)”, wherein this unit will provide unique connectivity components and scalable cables that are more resilient than the previous available in the market. These innovative offerings are designed to help data center manufacturers quickly adapt to the growing infrastructural need and any services to better equip them in providing high levels of uninterrupted performances

“According to Data Bridge Market Research, global hyperscale data center market is growing at a healthy CAGR of 26.43% during the forecast period of 2019 to 2026”

Some of the major players operating in the market are Intel Corporation, Cisco Systems Inc., Hewlett-Packard, Ericsson, Cavium Inc., IBM, Mellanox Technologies, Inc., Amazon Web Services, Inc,  Equinix, Inc., Apple Inc., China Unicom (Hong Kong) Limited., NTT Communications Corporation, QTS Realty Trust, Inc., Inspur, Western Digital Corporation,  Nlyte, Broadcom.

The age of IoT is upon us and this essentially means that the interconnectivity of devices has given rise to massive surge of data being generated every second. This data is updated at every command between different interconnected devices and is relatable to the existing information available to these devices. This need for constantly availing this massive information provides an opportunity to hyperscale data center providers to fulfil the storage requirements of different enterprises as they do not have the optimal resources/capital to ensure successful operations of their business models in the long run without availing external storage solutions.