Growth Of Data Pushing Increase of Hyperscale Data Centers

by Josh Biggs in Tech on 4th February 2021

The Internet is bigger than most people think. As technology continues to grow and change at a rate that is nearly incomprehensible, the demand for data storage to improve also increases. This has been made even more important by the IoT (Internet of Things). 

That’s where hyperscale data centers come in. They might sound like something from the future, but hyperscale data centers are used as an actual space for website hosting and data storage. They are mostly used by businesses to improve data speed and security as demands continue to increase. 

As stated above, hyperscale data centers are growing. That’s due to the impact of data growth. 

So, what are the factors causing the data center industry to experience continued growth? Will hyperscale centers continue to grow, or will things level out over time?

The Growth of Data 

By 2024, it’s expected that the data center market will reach revenues of over $69 billion. Obviously, this is a projection that suggests the market will continue to grow. Hyperscale data centers owned by major corporations like Google and Apple will see the biggest growth, as they are where investors are willing to place their money and who businesses are willing to trust. 

Hyperscale data centers are causing smaller-scale operations to shut down, but that isn’t necessarily a bad thing. Smaller data centers simply aren’t equipped to handle the demands coming in on a constant basis from computers, mobile devices, and everything in between. 

So, what’s causing this growth? 

The Biggest Factors

If you want to what the key players are in driving the increase of hyperscale data centers, you have to consider what people want. The main reason for these centers to exist is so business performance can continue to keep up with consumer demands. With that in mind, the key growth factors include: 

  • The Internet of Things  – Everything from artificial intelligence to security falls underneath the IoT category, and all of it requires an exponential amount of data. Did you know that even your Amazon Echo or Google Dot are contributing to this growth? 
  • Cloud storage – While cloud storage has made life safer and more convenient for individuals and businesses alike, it obviously increases the need for data space. 
  • Tax perks – In certain areas, tax incentives are offered to businesses and even area governments that work with hyperscale data centers. This usually occurs when those centers focus on “green” or sustainable business. 

Because the IoT and cloud storage will continue to grow, you can expect that hyperscale data centers will do the same. In fact, major data businesses are already starting to prepare for the future. Equinix recently purchased 29 data center buildings from Verizon to use as hyperscale centers. The price tag was $3.6 billion. Obviously, Equinix and other companies like it are looking at hyperscale data centers as a long-term investment. As stated above, major corporations seem to have a monopoly on them right now. So, more companies like custom data center cabinet solution provider Gaw Technology are vying to get their share of the wealth as the demand continues to grow. 

Of course, it’s not just in the U.S. where these centers are seeing continued growth. Huge hyperscale data centers are currently being developed in places like China, Australia, and Hong Kong. There is a demand for data growth across the globe. 

The Future of Data Centers

So, what does the future look like if the demand for data storage and security continues to go up?

The reality is, data centers will continue to grow and more hyperscale centers will continue to be constructed. But, at the rate things are moving, it will be impossible to keep up with demand. Machine learning is changing every day, along with artificial intelligence. The more advanced they become, the more that data demand will increase, and centers will have a hard time keeping up. 

Data centers will need to create larger operations and utilized automation whenever possible to free up employees. Automating things is one of the only ways to keep up with that demand, since there simply isn’t enough manpower to get it done. 

In the future, there may need to be a change in how data is stored and managed. But, that’s a discussion for another time, and l likely won’t happen for many years. For now, hyperscale data centers will continue to grow, and hopefully provide smooth sailing for businesses that need to utilize it most. 

Categories: Tech