The global hyperscale data center market is experiencing massive growth driven by AI. Key drivers include accelerating cloud adoption, AI workload demands, and data center efficiency needs. The market is dominated by major tech players like AWS, Microsoft, and Google.
Chicago, Feb. 09, 2026 (GLOBE NEWSWIRE) — According to recent data from Astute Analytica, the global hyperscale data center market was valued at US$ 111.57 billion in 2023 and is expected to reach US$ 177.58 billion by 2032, growing at a CAGR of 5.3% during the forecast period, 2024–2032.
The hyperscale data center market is experiencing unprecedented expansion, fueled by the surging demand for big data technologies across a wide range of industries. As global data generation skyrockets, reaching an estimated 175 zettabytes (ZB) by 2023, the need for robust infrastructure to store, manage, and process this vast volume of information has become critical. Hyperscale data centers serve as the essential computing backbone that supports this massive data ecosystem, providing scalable and efficient infrastructure that enables enterprises to harness their data assets effectively and achieve optimal operational efficiency.
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Hyperscale data centers are designed to handle enormous workloads by offering extreme scalability and flexibility. They allow businesses to dynamically allocate computing resources, quickly scale up or down, and manage data processing demands with agility. This capability is vital for enterprises aiming to leverage big data analytics, cloud computing, and other data-driven technologies. By providing the necessary infrastructure, hyperscale centers empower organizations to extract actionable insights from their data, improve decision-making, and enhance overall productivity.
Surge in AI-Driven Demand in the Hyperscale Data Center Market
The hyperscale data center market has recently witnessed an unprecedented surge in demand for processing and analyzing vast amounts of information using artificial intelligence (AI) technologies. This growth is driven primarily by the exponential increase in connected devices worldwide, which is expected to reach a staggering 14.4 billion globally.
The continuous growth in data generation has compelled hyperscale data centers to rethink traditional processing methods. By embedding AI directly into their infrastructure, these centers can automate data handling tasks, optimize resource allocation, and enhance system responsiveness. This integration allows for better handling of real-time data streams, enabling faster analysis and decision-making critical for applications ranging from cloud computing to big data analytics.
Real-time analytics and decision-making are becoming increasingly vital as daily content creation is projected to reach 463 exabytes within the next five years. This explosive growth in data volume demands immediate insights and actions, particularly in sectors such as social media, e-commerce, finance, and healthcare. Hyperscale data centers, therefore, are focusing on leveraging AI capabilities to analyze data on the fly, enabling businesses to make timely, data-driven decisions.
Sustained Growth in the Global Hyperscale Data Center Market in 2023
In 2023, the global hyperscale data center market experienced steady growth, driven predominantly by an increasing demand for effective cooling solutions essential to maintaining the optimal performance of IT systems. As data centers continue to expand in size and complexity to accommodate growing digital workloads, the need for reliable temperature and humidity control has become paramount.
Within the cooling solutions segment, Computer Room Air Conditioners (CRAC) and Computer Room Air Handlers (CRAH) units remain the most valuable components in the market cluster. These units are anticipated to generate revenues exceeding US$1.36 billion by 2032, growing steadily at a compound annual growth rate (CAGR) of approximately 2.24%. CRAC and CRAH units are vital in regulating the temperature and humidity within data center environments, ensuring that IT equipment operates within safe parameters.
Maintaining controlled temperature and humidity is crucial for the functionality and dependability of information technology devices housed in hyperscale data centers. Overheating or excessive moisture can lead to hardware malfunctions, reduced lifespan of components, and even catastrophic failures. CRAC and CRAH units contribute by continuously circulating conditioned air and removing excess heat generated by densely packed servers and networking equipment.
Air-Based Cooling: The Leading Segment in Hyperscale Data Centers
The air-based cooling segment is widely regarded as holding the largest market share in the hyperscale data center cooling market, largely due to its cost-effectiveness and adaptability to various data center designs. By 2032, the segment’s revenue is projected to exceed US$ 1.36 billion, underscoring its continued relevance despite emerging alternatives. One of the key advantages driving this dominance is the ease with which existing data center infrastructures can be retrofitted with air-based cooling systems.
As of 2023, more than 60% of data centers worldwide still rely on air-based cooling systems. This widespread adoption is primarily because air cooling solutions are relatively simple to implement and maintain, and they come with lower upfront and operational costs compared to more advanced cooling technologies. For many operators, especially those managing legacy data centers, air cooling remains the go-to method for managing thermal loads, balancing performance with budget constraints.
Air-based cooling’s cost-effectiveness stems from its straightforward design and the use of widely available components such as fans, air handlers, and ventilation systems. These systems can be easily scaled and adapted to different data center layouts, making them suitable for a broad range of facility sizes and configurations.
North America’s Leadership in the Hyperscale Data Center Market
North America continues to assert its dominance as the frontrunner in the global hyperscale data center market, maintaining a significant leadership position. By the end of the forecast period, the region is projected to command over 45% of the total market revenue share. This commanding presence reflects North America’s advanced technological infrastructure and strong investment climate, making it the preferred hub for large-scale data center development and operation.
The United States is the primary driver behind North America’s robust growth in the hyperscale data center sector. Currently, approximately 45 new hyperscale facilities are under development across the country, each boasting power capacities of around 15 megawatts. This surge is fueled by major technology giants such as Microsoft, Facebook, and Apple, which have committed massive capital expenditures to build extensive data center campuses from the ground up.
The expansion of hyperscale data centers in North America is further accelerated by the rising demand for wholesale data center spaces from media, entertainment, and social networking companies. These sectors require vast storage and processing capabilities to manage the exponential growth of digital content, streaming services, and social interactions. Their appetite for scalable, reliable data infrastructure strongly propels the development of new hyperscale facilities, reinforcing the region’s market dominance.
Global Hyperscale Data Center Market:
SanDisk Corporation
IBM Corporation
Hewlett-Packard
Cisco Systems
Cavium Systems
Mellanox Technologies
Broadcom Ltd.
Intel Corporation
Quanta Computer Inc.
Other Prominent Players
Key Segmentation:
By Infrastructure
By Cooling System
By Cooling Technique
Air-based cooling
Liquid-Based Cooling
By General Construction
By Region
North America
Europe
Asia Pacific
Middle East & Africa
South America
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About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.
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