U.S. Hyperscale Data Center Market Industry Outlook & Forecast 2024-2029: AI & HPC Applications Drive Liquid Immersion & Direct-To-Chip Cooling - ResearchAndMarkets.com

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The U.S. hyperscale data center market by investment is expected to grow at a CAGR of 7.75% from 2023 to 2029.

The U.S. hyperscale data center market is experiencing a surge in demand due to the needs of hyperscale companies, AI, and the growth of edge computing. Data center operators are modifying their infrastructure and developing innovative cooling and energy-efficient solutions to meet sustainability targets in response to the increasing demands of AI. For example, Meta has introduced a new data center design specifically tailored for an AI-driven future, and it is transitioning its data centers to utilize liquid cooling as part of a redesign focused on AI.

Hyperscale data centers are typically designed with flexible power capacity, ranging from 15 to 100 MW, and occupy spaces ranging from 50,000 to over a million square feet. Building such facilities can often incur costs exceeding USD 1 billion.

The trend of data center operators procuring renewable energy to power data center facilities will likely continue during the forecast period. Several operators are signing power purchase agreements with renewable energy companies.

The US government will promote data center investments through various initiatives such as increasing the availability of land for development, reducing electricity tariffs, offering sales and tax incentives, and enabling the procurement of renewable energy. Such initiatives will drive U.S. hyperscale data center market growth during the forecast period.

The primary submarkets face land and power limitations, restricting opportunities for new companies to enter the U.S. hyperscale data center market. However, operators prefer several new submarkets across the states due to higher tax incentives and the availability of power and land.

SEGMENTATION INSIGHTS

• Advanced network storage solutions in U.S. data centers aim to improve data transfer speeds and reduce latency. Hybrid storage models, combining on-premises and cloud storage, are adopted to optimize performance, cost, and accessibility.
• The use of modular power infrastructure in data centers is expected to result in cost savings over time. These systems are more efficient, leading to space savings and the need for less maintenance.
• Numerous innovative power and cooling systems have recently been launched in the U.S. hyperscale data center market, emphasizing sustainability. Infrastructure providers are increasingly prioritizing the creation of products that minimize environmental impact.
• The adoption of HVO fuel as an alternative to diesel for powering generators is anticipated to rise in the U.S. hyperscale data center market, driven by its environmental benefits. Numerous operators are transitioning from diesel to HVO fuel for their backup generators to enhance sustainability.
• In regions with suitable climates, cooling methods such as evaporative coolers are increasingly being used to efficiently cool data centers.
• In addition to constructing data centers, the company prioritizes improving physical security and oversees the facilities through real-time monitoring with a DCIM system.
• The significance of real-time monitoring software, enhanced with automation and AI capabilities, is increasingly recognized. This technology can forecast maintenance requirements, detect component failures, and execute automatic switchovers to maintain continuous operations.

GEOGRAPHICAL ANALYSIS

• Virginia, Texas, California, Utah, Iowa, Oregon, and Georgia are considered top states for attracting hyperscale investments in the U.S. hyperscale data center market. Major operators such as Microsoft, Google, Amazon Web Services, Meta (Facebook), Switch, QTS Realty Trust, NTT DATA, Tract, and others are constructing large data centers in these states. These facilities are anticipated to be further expanded in the future.
• Northern Virginia is considered the data center capital of the world, with the highest concentration of data center facilities. However, due to increased demand, it is currently experiencing power constraints. As a result, nearby states are being considered alternative locations for data center development.
• In Dallas-Fort Worth, power availability from ERCOT and Oncor Electric has led to a faster development timeline than many other major markets. In contrast, other markets are experiencing delays due to supply chain and power supply challenges. South Dallas has seen the most significant demand from developers.
• Historically, the data center market in California has expanded at a slower rate compared to other key markets such as Virginia and Texas. This slower growth is attributed to challenges in securing a power supply and acquiring land for development. This trend is anticipated to persist throughout the forecast period.
• Chicago and Phoenix are experiencing a significant increase in interest in the hyperscale market, indicating that they are gaining traction. Arizona is recognized as one of the most vibrant and active markets for hyperscale demand and development. The state boasts cities such as Phoenix, Mesa, and Goodyear, all experiencing a surge in data center development activities.
• New York and New Jersey rank higher as leading data center hubs in the Northeastern US. Despite their status, these states are not expected to see the development of hyperscale projects due to limited available space for constructing such large-scale facilities, particularly in high-demand areas such as New York and New Jersey.
• Other nearby states, such as Connecticut, Pennsylvania, and others, will likely witness a few hyperscale data center investments during the forecast period.

Key Data Center IT Infrastructure Providers

• Arista Networks
• Atos
• Broadcom
• Cisco Systems
• DataDirect Networks
• Dell Technologies
• Extreme Networks
• Fujitsu
• Hewlett Packard Enterprise (HPE)
• Hitachi Vantara
• IBM
• Intel
• Infortrend technology
• Inspur
• Lenovo
• MiTAC Holdings
• Micron technology
• NetApp
• Nimbus Data
• Oracle
• Pure Storage
• Seagate Technology
• QNAP Systems
• Quanta Cloud Technology (Quanta Computer)
• Supermicro
• Synology
• Western Digital
• Wiwynn (Wistron Corporation)

Key Data Center Support Infrastructure Providers

• ABB
• Caterpillar
• Cummins
• Delta Electronics
• Eaton
• Legrand
• Rolls-Royce
• Schneider Electric
• STULZ
• Vertiv

Other Data Center Support Infrastructure Providers

• Airedale
• Alfa Laval
• Asetek
• Bloom Energy
• Carrier
• Condair
• Cormant
• Cyber Power Systems
• Enlogic
• FNT Software
• Generac Power Systems
• Green Revolution Cooling (GRC)
• HITEC Power Protection
• Johnson Controls
• KOHLER
• KyotoCooling
• Mitsubishi Electric
• Natron Energy
• NetZoom
• Nlyte Software
• Rittal
• Siemens
• Trane (Ingersoll Rand)
• Tripp Lite
• Yanmar (HIMOINSA)
• ZincFive

Key Data Center Contractors

• AECOM
• Arup
• Corgan
• DPR Construction
• Fortis Construction
• Holder Construction
• Jacobs
• Rogers-O'Brien Construction
• Syska Hennessy Group
• Turner Construction

Other Data Center Contractors

• AlfaTech
• BlueScope Construction
• Brasfield & Gorrie
• Balfour Beatty
• Bell/Knott & Associates
• Burns & Mcdonell
• CallisonRTKL
• Clark Construction Group
• Climatec
• Clune Construction
• EMCOR Group
• EYP MCF
• Fitzpatrick Architects
• Fluor Corporation
• Gensler
• Gilbane Building Company
• Gibbens Drake Scott
• HDR
• HITT Contracting
• Hoffman Construction
• JE Dunn Construction
• JHET Architects
• kW Engineering
• WSP (kW Mission Critical Engineering)
• Linesight
• M+W Group (Exyte)
• Morrison Hershfield
• Mortenson
• Morgan Construction Company
• PCL Construction
• Rosendin
• Salute Mission Critical
• Sheehan Nagle Hartray Architects
• Skanska
• Southland Industries
• Sturgeon Electric Company
• Structure Tone
• The Mulhern Group
• The Walsh Group
• The Weitz Company
• TRINITY Group Construction
• TGRWA

Key Data Center Investors

• Apple
• Key News
• Amazon Web Services (AWS)
• CyrusOne
• DataBank
• Digital Realty
• Equinix
• Google
• Meta (Facebook)
• Microsoft
• NTT Global Data Centers
• Vantage Data Centers

Other Data Center Investors

• Aligned Data Centers
• Key News
• American Tower
• AUBix
• Centersquare (Evoque)
• CloudHQ
• Cologix
• Compass Datacenters
• COPT Data Center Solutions
• CoreSite
• DartPoints
• DC BLOX
• EdgeConneX
• EdgeCore Digital Infrastructure
• Element Critical
• Flexential
• fifteenfortyseven Critical Systems Realty (1547)
• H5 Data Centers
• Iron Mountain
• Netrality Data Centers
• Novva Data Centers
• PowerHouse Data Centers
• Prime Data Centers
• QTS Realty Trust
• Sabey Data Centers
• Skybox Datacenters
• Stream Data Centers
• STACK Infrastructure
• Switch
• T5 Data Centers
• TierPoint
• Yondr
• 365 Data Centers

New Entrants

• Corscale Data Centers
• Crane Data Centers
• Edged Energy
• NE Edge
• Quantum Loophole
• Tract
• Rowan Digital Infrastructure

Key Attributes:

Key Topics Covered:

Market Opportunities & Trends

• AI to Reshape Landscape of Data Center Market
• Rise in Rack Power Density
• Data Centers Shift Toward Sustainability
• Adoption of Advanced Ups Batteries
• Sustainable & Innovative Data Center Technologies
• AI & HPC Applications Drive Liquid Immersion & Direct-To-Chip Cooling

Market Growth Enablers

• Significant Development of Data Center Facilities with Over 15 Mw Power Capacity
• Hyperscale Self-Built Data Centers on Rise in US
• Tax & Sales Incentives Boost Growth of Data Center
• Increase in Adoption of Cloud-based Services & Shift from On-Premises to Cloud Platform
• Positive Impact of Big Data, IoT, AR, & VR on Data Centers

Market Restraints

• Market Growth Hindered by Disruption in Supply Chain
• Shortage of Skilled Workforce & Discrimination
• Challenges in Choosing the Right Location for Building Data Centers
• Security Issues Affect Expansion of Data Centers
• High Power and Water Consumption by Data Centers
• Rise in Concerns for Carbon Emissions

SEGMENTATION ANALYSIS

Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Infrastructure

IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Cooling Techniques

• Air-based Cooling
• Liquid-based Cooling

General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• DCIM/BMS Solutions

Tier Standards

• Tier I & Tier II
• Tier III
• Tier IV

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Fonte: Business Wire