Petroc Taylor
Research expert covering global developments in the use of data
Get in touch with us nowHyperscale operators continue to expand
A key driver in the data center market has been the broad adoption of cloud computing, which enables organizations to make use of data storage and computing power via the internet. Users can purchase these services via a subscription model, allowing them to rapidly scale up their usage with ease. To offer these services, leading providers such as Microsoft Azure and Amazon Web Services (AWS) operate vast facilities known as hyperscale data centers, which generally exceed 1,000 square meters. A second factor has been the adoption of emerging technologies such as AI (artificial intelligence) and the IoT (internet of things), which have contributed to a surge in global data use, and thus increased demand on data center infrastructure.Northern Virginia remains the world’s largest market
Hyperscale operators have generally grouped around several key markets with favorable conditions regarding local infrastructure, energy costs, proximity to end-users, and the price of land. The Northern Virginia region is undoubtedly the world’s most important data center hub, offering the most inventory of any region, though also ranking among the most expensive, pushing operators to consider alternative markets. Another key consideration is energy efficiency, with the industry under pressure to deliver sustainability targets. Although many providers do not publish efficiency metrics, survey data indicates that efficiency gains across the market have leveled off in recent years, with further improvements requiring significant investment. Many industry players are exploring nuclear energy as a solution, with small, on-site nuclear reactors known as Small Modular Reactors (SMRs) able to secure energy independence.
