Hyperscale operators now represent nearly half of global data center capacity.

Hyperscale operators now account for nearly half of global data center capacity and could exceed two-thirds of the market by 2031, according to Synergy Research Group. In its latest findings, Synergy said hyperscalers now represent 48% of worldwide data center capacity, with 60% of that total consisting of self-built and self-owned facilities.

Non-hyperscale colocation capacity now represents just 20% of total global data center capacity, while enterprise on-premises facilities account for the remaining 32%. By comparison, in 2018, on-premises enterprise data centers made up more than half of worldwide capacity at 56%.

Overall, total data center capacity is expected to increase, driven by a threefold expansion in hyperscale infrastructure. Under this high-growth scenario, Synergy projects that hyperscale operators will account for 67% of global capacity by 2031, while on-premises capacity is expected to decline to 19% of market share. However, the research firm noted that on-premises data center capacity will still grow, supported by demand from generative AI applications and GPU-based infrastructure.

"Cloud and consumer-oriented digital services have been driving changes in data center deployment patterns for many years now, but over the last three years AI technology has accelerated those changes," said John Dinsdale, a chief analyst at Synergy Research Group.

“We are seeing a different mix of data center usage across the regions, but overall the world is racing towards a situation where hyperscale operators are responsible for the bulk of global data center capacity. There are almost 800 hyperscale data centers in our known future pipeline, enabling hyperscale capacity to double in just three years."