Hyperscale Data Center Market is estimated to be valued at USD 197.08 Bn in 2025 and is expected to reach USD 1,297.84 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 30.9% from 2025 to 2032.
The massive volume of data that is generated by businesses and individuals today is one of the major drivers driving the hyperscale data center market. The hyperscale data center market is expected to continue growing in the future as businesses expand their capacity and need to manage more data. The increasing use of managed services in enterprise IT environments is also driving the market growth.
|
Current Event |
Description and its Impact |
|
AI Revolution and Computing Demand Surge |
|
|
Global Energy Crisis and Sustainability Mandates |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
In terms of IT infrastructure, the server infrastructure segment is expected to dominate the global market with 51.9% share in 2025, attributed to the constant innovations by market vendors driving the adoption of various infrastructure components for server infrastructures. Modern server systems come with internal storage components that can be equipped with SSDs or HDDs or even both. These infrastructures have various advantages, and with increasing innovations adoption of server infrastructure is increasing, which is expected to propel growth of the segment.
For instance, in September 2025, Microsoft launched Fairwater, the world's most powerful AI datacenter, which has the latest server technology. Each rack has 72 NVIDIA GB200 GPU-powered servers, CPUs, memory, and exabyte-scale storage, giving it more computing power than ever before. This hyperscale facility shows how new technologies in server infrastructure are helping data centers grow around the world in 2025.
In terms of electric infrastructure, the UPS systems segment is expected to dominate the global market in 2025, with largest share. This is attributed to the rise in adoption of VRLA battery-powered systems that are being complemented by the procurement of lithium-ion batteries. Vendors are introducing various UPS solutions, which is further driving adoption of these systems. This in turn is likely to aid in growth of this segment.
For instance, in October 2025, ON.energy launched a groundbreaking medium-voltage UPS system designed for AI-driven hyperscale data centers. The solution enhances grid stability while ensuring uninterrupted power for GPU-intensive workloads. By integrating VRLA and lithium-ion battery technologies, the innovation addresses rising energy demands.
Based on mechanical infrastructure, the cooling systems segment is expected to dominate the global market over the forecast period and this is attributed to the increasing innovations in cooling systems for improved operational efficiency and decreasing consumption of power in hyperscale data center facilities. The demand for cooling systems is thus increasing all over the world, which is expected to support growth of this segment.
For instance, in September 2025, Schneider Electric released a new line of liquid cooling products for hyperscale data centers. These products are meant to meet the growing energy needs of AI and high-density workloads. The solutions help the company run more efficiently, use less power, and reach its sustainability goals.
In terms of general construction, the core & shell development segment is expected to dominate the global market over the forecast period and this is attributed to the many benefits of core and shell development method for the construction process. This method speeds up the design and builds process in general by defining the core and shell elements of the building first, with the fittings to be determined at a later point. This allows progress to be made in the construction of other portions of the building while long-lead items for the core and shell are being designed, saving the project time and money.
For instance, in August 2025, Etix completed building the core and shell of a 28MW hyperscale data center in Bangkok, Thailand. The milestone shows how effective the core and shell method is, as it allows for faster construction times and lower costs by allowing interior fit-outs to happen later.
To learn more about this report, Download Free Sample
North America is projected to show strong growth in the global hyperscale data center market with 29.4% share in 2025. The growth of this can be attributed to presence of major companies such as SanDisk Corporation, Cisco Systems, Inc. in the region. Among with this, rise in large firms with their global expansion through collaborations and product launch is also driving growth of the market in this region.
In December 2025, BluWave-ai released the Data Center Autopilot™ from Canada. This platform is meant to lower operating costs and make the electricity grid work better for big buildings. The solution improves energy efficiency and supports AI-driven workloads in hyperscale data centers. It meets the growing demand for power while also promoting sustainability in North America's rapidly growing digital infrastructure market.
Asia Pacific is projected to be the fastest growing region, owing to the fast growth of the cloud, 5G networks, and digital transformation projects in China, India, and Singapore. The demand for hyperscale investments in the region is growing on account of more people using the internet, more people shopping online, and workloads driven by AI. At the same time, government-backed digital infrastructure projects and efforts to be more environmentally friendly speed up these investments.
For instance, in December 2025, Vantage Data Centers opened a 16MW hyperscale facility in Kuala Lumpur, Malaysia. This represents an important leap forward for Southeast Asia's digital infrastructure. The new site is meant to handle the increased need for AI workloads and cloud services.
By 2025, the U.S. hyperscale data center market is booming owing to the growing need for AI workloads, cloud growth, and digital transformation projects. Providers have been investing a lot of funding into scalable, energy-efficient infrastructure since vacancy rates are at an all-time low and power needs are going up. This growth makes the U.S. the world leader in hyperscale development.
For instance, in December 2025, Google is building a new hyperscale data center in the US that functions on fossil fuels but uses advanced carbon capture technology to release almost no emissions. The project shows how new ideas for sustainability are changing hyperscale infrastructure, balancing the huge energy needs of AI and cloud workloads with being good to the environment in 2025.
In 2025, China's hyperscale data center market is expected to expand quickly as more individuals are using the cloud, AI is spreading, and the government is supporting digital infrastructure projects. Chinese companies like Alibaba, Tencent, and Huawei are growing to meet the needs of businesses and consumers. China is a world leader in hyperscale development because it invests an extensive amount of assets and comes up with new ways to use energy.
For instance, in August 2025, Rolls-Royce released a new data center engine in China to help the country's hyperscale market grow swiftly. The advanced power solution is meant to provide reliable, scalable energy for large facilities that need it in response to the growing demand from AI and cloud workloads. This move shows the significance China is becoming in the development of global hyperscale infrastructure.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 197.08 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 30.9% | 2032 Value Projection: | USD 1,297.84 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
Aecom, DPR Construction, Holder Construction, Jacobs, M+W Group (Exyte), Bouygues Construction, Mercury, Arup, and Benthem Crouwel Architects |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Large organizations around the world are increasingly inclining towards cloud solutions for organizing the work on cloud platforms. Different business sectors such as IT & Telecommunication, BFSI, consumer goods & retail, government, manufacturing, and healthcare are adopting cloud computing. In IT sector the adoption of cloud computing is growing for management and storing data. Thus, the demand for hyperscale data center in turn is likely to increase in the coming future, which is expected to propel growth of the global hyperscale data center market over the forecast period.
Growing speed of internet along with rising number of internet users is leading to large amount of data being produced and growing penetration of social media with time. Many industries such as BFSI, healthcare, hospitality, and education are witnessing rise in amount of data generated, owing to technological developments as well as initiatives of digital transformation. Moreover, the fast development of data traffic can be attributed to the Internet of Things (IoT). These factors are therefore driving the need for hyperscale data centers. Thus, the market is anticipated to show substantial growth in the near future.
Rise in adoption of Artificial Intelligence on data center infrastructure to create substantial growth opportunities in the global hyperscale data center infrastructure market over the forecast period. Several countries around the world have begun to adopt AI for various operations. Liquid cooling is the highly adopted cooling technology utilized in High-Performance Computing (HPC) in data centers for supporting AI and ML workloads. As a result, with increasing adoption of AI in data center infrastructure, the market is anticipated to witness various opportunities.
Increasing growth of rack power density is expected to produce business opportunities in the global hyperscale data center market over the forecast period. In data center designing, capacity planning, as well as cooling and power provisioning, the rack power density is one of the most important factors. The rack power density in IT equipment has increased in past few years. Due to rise in adoption of AI, Augmented and Virtual Reality, and IoT, which are compute-intensive workloads and rise in trend of cryptocurrency mining, the data storage and processing needs are growing. This in turn is creating multiple opportunities in the global hyperscale data center market during the forecast period.
The number of colocation and hyperscale data centers is increasing with time. However, along with this, the consumption of energy in data centers has also increased majorly leading to carbon emissions. Thus, government of countries around the world are focused on initiatives to control the emissions and consumption of power by data centers through adoption of renewable energy. This trend is likely to support growth of the global hyperscale data center market during the forecast period.
*Definition: Hyperscale data centers are massive, centralized facilities operated by large technology companies. They support a wide range of services from cloud computing to big data analytics and storage. They also require enormous amounts of electrical power to run their servers and cooling systems.
Share
Share
About Author
Monica Shevgan has 9+ years of experience in market research and business consulting driving client-centric product delivery of the Information and Communication Technology (ICT) team, enhancing client experiences, and shaping business strategy for optimal outcomes. Passionate about client success.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
Schedule a meeting with report Author
