US Hyperscale Market is Expected to Grow in the next few years at a CAGR of 10%:Ken Research

data center

More than 300 hyper scale data centres were being operated in 2022 in USA.

Increasing requirement of power density: The rack density in the most used hyper scale data centers has increased significantly over the past three years. Therefore, there are major gaps for power supply which will be fulfilled by Hyper scale data centers in the future.

Submarine cable projects along the East Coast: Hyperscale users experience huge traffic so they have invested largely in subsea cables, which connects data centers across continents, especially along the East Coast. This helps in avoiding huge traffic and lessens dependency on the nearest data center.

The roll out of 5G: A cellular network with significantly greater bandwidth compared to predecessors, will provide the infrastructure required for smart cities, advanced health services, sophisticated national security systems, drone delivery systems and autonomous vehicles. This foster data transfer from data centre to the clients.

Soaring Establishment Costs: Rising demand is causing capacity problems, challenges with land availability, and electric power supply delays. Because of the historically large volume of releasing activities, market absorption in the United States reached 1,087 MW in H1 2022, accounting for more than 95% of total demand in 2021.

Data Privacy Laws: State wise data privacy laws need to be followed by data centers that are built in the USA. The CCPA, modelled after the General Data Protection Regulation (GDPR), is aimed at protecting California residents’ consumer rights, ensuring stronger privacy, and increased transparency.

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