Hyperscale data center cloud capacity will triple

Forecasts indicate that hyperscale data centers are gearing up for massive expansion, nearly tripling their cloud computing volumes and storage capacity over the next six years. The findings, based on an analysis of 19 global cloud and internet services companies, reveal a significant upward trend in hyperscale enterprise data center expansion and upgrades.

Generative AI workloads drive accelerated expansion

Despite steady growth in cloud storage capacity, the expected surge in high-intensity generative AI workloads is accelerating key drivers of growth. As organizations become increasingly reliant on generative AI technologies and services, cloud service providers are adapting their strategies to meet growing demand. These changes include not only building new data centers, but also increasing the capacity and power density of existing facilities, especially with the large-scale deployment of graphics processing units (GPUs)

The current data center landscape And future expansion

The hyperscale cloud providers it studied were operating 926 major data centers globally by mid-2023, with plans to open an additional 427 facilities. This number has doubled in the past five years, highlighting the rapid growth of data center infrastructure.

The growth of the data center industry is also reflected in the employment data. A report commissioned by the Data Center Alliance and conducted by PwC showed that employment in the U.S. data center industry grew by 17% from 2017 to 2021. This growth is attributed to the proliferation of cloud services, data-intensive applications, and digital technologies.

While scaling cloud capacity is critical to meeting growing demand, it also creates challenges. Introducing more powerful computing technologies for AI workloads consumes additional energy and may result in higher operating costs for data center operators.

The cloud industry will see significant growth as large enterprises continue to invest in infrastructure upgrades and expansions. At the same time, the cloud industry will also meet the energy and cost challenges of emerging technologies such as generative artificial intelligence

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