RENO,
Nev., Aug. 15, 2024 /PRNewswire/ -- New data
from Synergy shows that just twenty state or metro markets account
for 62% of the world's current hyperscale data center
capacity. Northern Virginia and
the Greater Beijing Area alone
make up 22% of the total. They are followed by Dublin, the US states of Oregon and Iowa, and then Shanghai. Of the top 20 markets, 13 are in the
US, four in the APAC region and three in Europe. After the top 20, the next twenty
largest state or metro markets account for another 18% of the
market, with Europe and the APAC
region featuring more prominently in that batch. The prevalence of
US markets in the top twenty is mainly down to two factors – almost
60% of the world's hyperscale operators are headquartered in the
US, including the four biggest; and the US accounts for almost half
of all cloud market revenues. Looking ahead, the US and
China will continue to dominate
the numbers, though countries like Malaysia, India and Spain start to feature much more
prominently.
The research is based on an analysis of the data center
footprint of 19 of the world's major cloud and internet service
firms, including the largest operators in SaaS, IaaS, PaaS, search,
social networking, e-commerce and gaming. The companies with the
broadest data center footprint are the leading cloud providers –
Amazon, Microsoft and Google. In addition to a huge data center
footprint in their home US market, each also has multiple data
centers in many other countries around the world. In aggregate the
three now account for 60% of all hyperscale data center capacity.
They are followed in the ranking by Meta/Facebook, Alibaba,
Tencent, Apple, ByteDance and then
other relatively smaller hyperscale operators. Synergy's forecast
growth numbers are based in large part on its tracking of
hyperscale operators' pipeline of future data centers. Synergy's
known pipeline of future hyperscale data centers currently stands
at 510 facilities, which are at various stages of being planned,
developed or fitted out.
"A range of factors influence the choice of location for
hyperscale infrastructure, including proximity to customers,
availability and cost of real estate, availability and cost of
power, networking infrastructure, ease of doing business, local
financial incentives, political stability, and minimizing the
impact of natural hazards," said John
Dinsdale, a Chief Analyst at Synergy Research Group. "When
you weigh up those factors it tends to mitigate against some of the
world's biggest economic hubs, like London and New
York, while favoring some sparsely populated US states like
Oregon, Iowa and Nebraska. That makes for a different mix of
leading markets compared to retail colocation data centers, which
hyperscale companies often use to house their edge-oriented
infrastructure. While the general location decision criteria will
remain the same over the coming years, the mix of top market will
change driven mainly by high growth in emerging markets such as
parts of Southeast Asia and
Latin America."
About Synergy Research Group
Synergy Research Group provides quarterly market share analysis
and forecasts for Communications and Cloud related industries. Our
data and analysis is provided to clients through Synergy's unique
research SaaS platform, SIA™, which enables intuitive access to
complex and fast-moving data sets.
Synergy's Competitive Matrix™ and CustomView™ take this research
capability one step further, enabling our clients to receive
on-going quantitative market research that matches their internal,
executive view of the market segments they compete
in. Synergy's data analytics and analysis have been widely
recognized worldwide for over 20 years and are frequently used by
global industry leaders, governments, and financial
institutions.
To speak to an analyst or to find out more about how to
access Synergy's in-depth market data, please contact Heather Gallo
@ hgallo@srgresearch.com or at
775-785-3113.
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SOURCE Synergy Research Group