Hyperscale data centers are growing rapidly in capacity to meet the soaring demand for computing power from AI workloads. Right now, we have about 1,136 hyperscale data centers worldwide. That number has doubled in just five years, according to Synergy Research Group.
Synergy’s latest analysis shows that there are at least 504 more data centers in the planning or construction phases. They’re looking at the major players in the industry, including Amazon, Microsoft, Google, Meta, Tencent, and ByteDance.
Impressively, the total capacity of these operational data centers has doubled in less than four years, and it shows no signs of slowing down. Synergy predicts this capacity could double again in the next four years. Each year, we can expect about 130 to 140 new data centers to come online, but the real driver of growth is the increasing size of these facilities. Generative AI is fueling the demand for larger spaces.
In terms of location, the US leads the way, housing 54% of global hyperscale data center capacity, while Europe and China make up 15% and 16%, respectively. AWS, Microsoft, and Google dominate the landscape, collectively holding 59% of the market share. They each have a strong presence in both the US and Europe, followed by companies like Meta, Alibaba, Tencent, Apple, and ByteDance.
John Dinsdale, Synergy’s chief analyst, pointed out that the demand for AI has significantly changed the way we think about data center growth. The average size of new data centers is increasing much faster than it used to. While compiling their data, Synergy focused only on significant facilities, excluding smaller locations that some companies refer to as cloud data centers.
The data shows a clear trend toward larger facilities. The US will continue to lead the world by a substantial margin when it comes to hyperscale infrastructure.