North America Hyperscale Data Center Market size crossed USD 9 billion in 2020 and is predicted to observe over 14% growth rate between 2021 and 2027.
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Rising data traffic and the need for efficient systems to manage massive data are increasing the demand for hyper-scale data centers. The rising adoption of connected devices and wearable computing technologies in the region is driving the need for real-time data storage, processing, and access facilities. IoT-enabled devices are witnessing an increased adoption among enterprises to enhance visibility and mobilize actionable insights. This has led to the increasing demand for computing power in various industry verticals. These factors are also increasing the demand for hyper-scale data centers to efficiently manage the data traffic.
The COVID-19 pandemic has adversely impacted the economic conditions in the U.S. and Canada. According to Statistics Canada, the country’s economy declined by 9% in March 2020. The temporary closure of industrial plants in both the U.S. and Canada negatively impacted the hyperscale data center industry in the first half of 2020 due to supply chain disruptions and the limited availability of components used in data centers. The industry regained traction in the second half of 2020 with the gradual streamlining of supply chains. The increasing penetration of technologies, such as online banking, video-on-demand, e-learning & online retailing, resulted in high data traffic in 2020 and 2021, encouraging market players to offer high-quality data center services.
North America Market, By Component
The hyperscale data center market is witnessing a surge in demand for maintenance & support services. The market players offer cost-effective services to optimize hardware reliability and uptime. They maintain IT flexibility for rapid response to dynamic business needs. For instance, AWS monitors and conducts preventative maintenance on electrical & mechanical equipment to ensure that systems within AWS data centers remain operational. It examines electrical & mechanical systems and equipment to detect problems. This enables in achieving improvements in IT productivity and agility. Service providers can map devices to multiple firmware baselines and selectively update non-compliant firmware.
North America Market, By End-use
The increasing penetration of cloud computing solutions enabling easy data accessibility to boost organizational productivity and efficiency is propelling the industry growth in North America. Cloud services improve business performance through flexible deployment, security & storage management, the inexpensive total cost of ownership, utility-based sharing models, and high-level processing. Leading cloud service providers including AWS, Microsoft Azure, and Google Cloud are investing in hyper-scale data centers projects for technology development and low operation costs.
North America Market, By Application
The government sector is adopting digital technologies to offer better services to residents. Government organizations collect and store massive volumes of sensitive & personal data that must be protected and managed to avoid data breach & loss. As municipal and state government services become increasingly digital, IT specialists are required to manage complex systems, boosting the demand for hyper-scale data centers that enable high-speed data processing. The increasing use of digital technology will drive the demand for efficient hyperscale data centers for data management.
Competitive Industry Landscape
Major players involved in the North America hyperscale data center market include ABB Ltd., Alphabet Inc., Amazon Web Services, Broadcom Ltd., Cisco Systems, Inc., Corning Incorporated, Dell Inc., Equinix Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Lenovo Group Ltd., Marvell Technology Group Ltd., Microsoft Corporation, Nlyte Software, NVIDIA Corporation, Schneider Electric SE, Telefonaktiebolaget LM Ericsson, and Western Digital Corporation.
The companies are undertaking strategic mergers and acquisitions to offer advanced products for data centers. For instance, in November 2021, Broadcom Inc. partnered with Meta to implement the Broadcom StrataXGS Tomahawk 4 switch series, a high bandwidth Ethernet switch chip, in its data center network fabric. The Tomahawk4 switch series requires a minimal amount of power per bit of bandwidth, enabling considerable cost-savings and ultra-high-density networking devices.