Skip to main content

U.S. Operators Drive Hyperscale Data Center Growth

More enterprise data centers are being impacted by a shift to cloud-based hosted service offerings. CIOs have acknowledged that when it comes to commodity x86 servers, the hyperscale service providers are often much better at delivering IT infrastructure for mainstream workloads.

With the exception of high-performance computing (HPC) systems and purpose-built mainframes or supercomputers, it's becoming increasing difficult to justify maintaining a corporate data center. Meanwhile, the number of large data centers operated by hyperscale service providers reached the 300 mark in December of 2016, after a flurry of year-end data center openings by the leading providers.

One notable feature of the global footprint is that despite a major ongoing push to locate new operations in countries around the world, the U.S. market still accounts for 45 percent of major cloud and internet data center sites, according to the latest worldwide market study by Synergy Research Group (SRG).

Hyperscale Data Center Market Development

The next prominent locations are China and Japan, with 8 percent and 7 percent respectively. The three leading countries are then followed by the UK, Australia, Canada, Singapore, Germany and India, each of which accounts for 3-5 percent of the global total.

The research is based on an analysis of the data center footprint of 24 of the world’s major cloud and internet service firms, including the largest operators in SaaS, IaaS, PaaS, search, social networking and e-commerce.


That said, on average each of the 24 service providers had 13 data center sites. The companies with the broadest data center footprint are the leading cloud providers – AWS, Microsoft and IBM.

Each has 40 or more data center locations with at least two in each of the four regions – North America, APAC, EMEA and Latin America. According to the SRG assessment, Google and Oracle also have a notably broad data center presence.

The remaining firms tend to have their data centers focused primarily in either the U.S. (Apple, Twitter, Salesforce, Facebook, eBay, LinkedIn, Yahoo) or China (Tencent, Baidu).

Previously Alibaba also was focused mainly in China, but it has now opened data centers in the U.S. market, Hong Kong, Singapore, Japan and the UAE.

Global Outlook for Data Center Expansion

"Hyperscale growth goes on unabated and we are forecasting that hyperscale operators will pass the 400 data center mark by the end of 2018," said John Dinsdale, research director at Synergy Research Group.

What is remarkable is that the U.S. still accounts for nearly half of all hyperscale data centers, reflecting the American vendor dominance of cloud computing and internet-based technologies.

While other countries are now featuring more prominently due to either their scale or the unique characteristics of their local markets, the major players continue to invest heavily in U.S. based data center operations.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d