For the period between the first and third quarter of 2019, hyperscale operators accounted for 33 percent of all spending on data center hardware and software, an increase from 30 percent in first three quarters of 2018.
Data center spending
A data center is a network of computing and storage resources that enable the delivery of shared software applications and data. These centers can house large amounts of critical and important data, and therefore are vital to the daily functions of companies and consumers alike. As such, information technology (IT) spending on data center systems worldwide is estimated to amount to 208 billion U.S. dollars in 2020. The evolution of technology, along with the rapid growth in demand for data across the globe, is largely driven by the leading hyperscale data center providers like Google, Microsoft, and Facebook.
Hyperscale data centers
A traditional data center will often support hundreds of physical servers; a hyperscale facility needs to support thousands of physical servers, as well as millions of virtual machines. To meet the demands across industry, firms are rapidly expanding and delivering new infrastructure options, with an expected 628 hyperscale data centers worldwide by 2021. Hyperscale computing is necessary for cloud and big data storage, as well as other applications demanded in the modern, digital world. The capital expenditure (CAPEX) of hyperscale operators equated to over 118 billion U.S. dollars in 2019. Costs involved include servers, network equipment, power, and cooling.
Environmental awareness
With the increased demands now placed on hyperscale data centers also comes an increased demand for energy to support their activities, a trend that has risen dramatically over recent years. Whereas traditional data centers have reduced their demand for energy, hyperscale data centers have more than doubled their energy demands. As a result, hyperscale operators have explored alternative energy sources. An example of this includes Amazon Web Services who have built wind farms in order to supply their data center infrastructure with renewable energy.
Share of spending on data center hardware and software worldwide from 2014 to 2019, by operator type
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Synergy Research Group. (December 13, 2019). Share of spending on data center hardware and software worldwide from 2014 to 2019, by operator type [Graph]. In Statista. Retrieved November 21, 2024, from https://www.statista.com/statistics/1108429/data-center-hardware-and-software-spending-share-world/
Synergy Research Group. "Share of spending on data center hardware and software worldwide from 2014 to 2019, by operator type." Chart. December 13, 2019. Statista. Accessed November 21, 2024. https://www.statista.com/statistics/1108429/data-center-hardware-and-software-spending-share-world/
Synergy Research Group. (2019). Share of spending on data center hardware and software worldwide from 2014 to 2019, by operator type. Statista. Statista Inc.. Accessed: November 21, 2024. https://www.statista.com/statistics/1108429/data-center-hardware-and-software-spending-share-world/
Synergy Research Group. "Share of Spending on Data Center Hardware and Software Worldwide from 2014 to 2019, by Operator Type." Statista, Statista Inc., 13 Dec 2019, https://www.statista.com/statistics/1108429/data-center-hardware-and-software-spending-share-world/
Synergy Research Group, Share of spending on data center hardware and software worldwide from 2014 to 2019, by operator type Statista, https://www.statista.com/statistics/1108429/data-center-hardware-and-software-spending-share-world/ (last visited November 21, 2024)
Share of spending on data center hardware and software worldwide from 2014 to 2019, by operator type [Graph], Synergy Research Group, December 13, 2019. [Online]. Available: https://www.statista.com/statistics/1108429/data-center-hardware-and-software-spending-share-world/