North American Hyperscale Data Center Market revenue to hit $20 Bn by 2027

Published Date: 2022-03-29

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North American Hyperscale Data Center Market size is projected to surpass USD 20 billion by 2027, according to a latest forecast report by Graphical Research.

The market is witnessing a surge in sales through e-commerce channels as retailers are investing in digital platforms to reach consumers globally and enhance the shopping experience. According to the Census Bureau of the Department of Commerce, U.S. retail e-commerce sales for the fourth quarter of 2021 was USD 218.5 billion, an increase of 1.7% (±0.7%) from the third quarter of 2021. The increasing number of online transactions will drive the requirement for high-quality data storage for fast data processing. The growing penetration of digitalization across the retail sector with increasing use of technologies, such as Artificial Intelligence (AI) and Augmented Reality (AR), will propel the market demand.

The ongoing COVID-19 pandemic had moderately impacted the hyperscale data center industry growth in 2020. Several companies witnessed a decline in their revenue in the first half of 2020 due to supply chain disruptions. Delays in raw material procurement impacted the production capability of data center component providers. With relaxations on pandemic-related restrictions in the second half of 2020 coupled with the resumption of industrial activities, the global supply chains were streamlined. The market witnessed a sudden rise in automation, digital transactions, and remote software utilization. The penetration of digital technologies increased in 2021 as it offers high-quality data storage and processing capabilities to various industries including BFSI and government.

The rising development of hyper-scale data centers to store massive amounts of data is increasing the demand for data center cooling. Companies are heavily investing in cutting-edge data center cooling technology to ensure optimal and efficient operating conditions. The in-row cooling technology is used in hyper-scale data centers to increase serviceability, reliability, and energy economy. Increasing government initiatives to decrease carbon footprints from high-power density facilities are fuel the industry growth. For instance, in August 2021, the U.S. Environmental Protection Agency (EPA) announced new guidelines to improve energy efficiency in data centers around the country. It mandates an energy-efficiency target for data centers with a 20% reduction in carbon footprints.

Browse detailed statistical insights from the report, “North America Hyperscale Data Center Market Forecast 2027 By End-use (Cloud Providers, Colocation Providers, Enterprises), By Component (Solution {Cooling, Power, IT Racks & Enclosures, LV/MV Distribution, Networking Equipment, DCIM}, Service {Installation & Deployment, Maintenance & Support, Monitoring Services}), By Application (BFSI, Government, IT & Telecom, Entertainment & Media, Retail & E-commerce), Research Report, Country Outlook, COVID-19 Impact Statistics, Price Trends, Historic Data, Growth Prospects, Competitive Industry Share” along with the table of contents (ToC) @

Colocation service providers are expanding their market presence in the region owing to the high demand for effective data traffic management solutions. For instance, in October 2020, Equinix, Inc. acquired 13 data centers and their operations in Canada from BCE, Inc. (Bell). The agreement aimed to boost the company's position as a provider of digital infrastructure in the country. Hyper-scale data centers provide connectivity, security, and dependability that colocation service providers require while scaling efficiently with expanding operational requirements. Hyper-scale data centers facilitate large-scale installations with ideal Power Usage Effectiveness (PUE) through geothermal cooling and containment advancements.

The IT & telecom industry is witnessing an increasing demand for hyper-scale data centers due to rising digitization and penetration of technologies such as big data & cloud. These technologies pose an increasing demand for data storage and availability. Government authorities are focusing on developing robust IT & telecom infrastructures to support the growing demand for digital transformation from citizens. The growing penetration of 5G is resulting in higher data traffic, which will further fuel the demand for hyper-scale data centers that ensure efficient data traffic management. For instance, in January 2022, Telus Communications Inc. announced that it was able to offer its 5G network service offerings to 70% of the population of Canada as a part of its USD 54 billion investment made in infrastructure & operation development through 2024.

The North American hyperscale data center market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

North America Market, By Component

  • Solution
    • Cooling
    • Power
    • IT Racks & Enclosures
    • LV/MV Distribution
    • Networking Equipment
    • DCIM 
  • Service
    • Installation & Deployment
    • Maintenance & Support
    • Monitoring Services

North America Market, By End-use

  • Cloud Providers
  • Colocation Providers
  • Enterprises

North America Market, By Application

  • BFSI
  • Government
  • IT & Telecom
  • Entertainment & Media
  • Retail & E-commerce
  • Others

The above information has been provided for the following countries:

  • North America 
    • U.S.
    • Canada