Hyperscale data center market is expected to grow at a CAGR of more than 11 percent from 2017-2021, according to Technavio.
“The increase in the construction of data centers is driven by the rise in demand for cloud-based services and big data analytics. The demand for these offerings is rising because of the increase in data generated through connected devices in the form of the Internet of Things,” said Sunil Kumar Singh, a lead analyst at Technavio for data center research.
The report said the adoption of cloud-based storage by enterprises, increase in business operational needs and emergence of government data centers are contributing to the growth of the global hyperscale data center market.
Many enterprises have started moving their data to the cloud storage by selecting service providers, such as Microsoft Azure, Amazon Web Services, and Google Cloud Platform. The demand for storage as a service (STaaS) has also increased because of the reduced cost, better scalability, and high availability of storage.
The global STaaS market is expected to reach around $30 billion by 2020. CSPs are focusing on the construction of cloud data centers because of the adoption of cloud-based storage by enterprises. CSPs are building such data centers with advanced storage infrastructures, such as flash and hybrid arrays.