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In 2023, the global data center market witnessed investments of over $248 billion, owing to investments from colocation operators, such as Equinix, Digital Realty, Vantage Data Centers, STACK Infrastructure, Iron Mountain, QTS Realty Trust, NTT DATA, DataBank, ST Telemedia Global Data Centres, and several others. Hyperscalers, such as Meta (Facebook), Microsoft, Amazon Web Services (AWS), and Google, also aid the market with investments. These companies expand their global presence, focusing on emerging locations across Europe and APAC. The US data center market is booming due to the demand from hyperscale companies, Artificial Intelligence (AI) needs, and the growth of edge computing. To keep up with the AI demands, data center operators are adjusting their infrastructure and developing innovative cooling and energy efficiency solutions to meet sustainability targets.

Key Investors & Investments

1. In March 2024, Google announced its plan to develop a new data center campus in Kansas City, Missouri, with an investment of around $1 billion. The campus will be built over four phases, with the first phase likely to be online by 2025-2026.
2. In April 2023, Amazon Web Services (AWS) acquired around 234 acres of land in Pickaway County, Ohio, with an investment of over $49 million for its data center expansion across the state.

Surge in Cloud-Based Services Drives Growth in Hyperscale Data Centers Worldwide

The increasing demand for digital transformation has rapidly boosted the adoption of cloud-based services. This surge is accelerating the development of extensive hyperscale cloud data centers and reshaping the data center market through innovations and advanced infrastructure. Major cloud service providers such as Google, Amazon Web Services, Microsoft, Alibaba Cloud, Oracle, Tencent Cloud, and IBM are at the forefront, enabling organizations to store data, operate software, and access computing resources over the Internet. This shift offers significant benefits, including enhanced flexibility, scalability, and cost-effectiveness, making cloud platforms a preferred choice across various sectors, including IT, telecommunications, manufacturing, retail, logistics, healthcare, and government.

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