Thursday, January 10, 2019

11% More Hyperscale Data Centers Added in 2018

The number of large data centers operated by hyperscale providers rose by 11 percent in 2018 to reach 430 by year end, says Synergy Research Group. And that could continue to reshape wide area network communications, as most global traffic now is generated by the hyperscale data centers.

Amazon, Microsoft, Google and IBM each have 55 or more data center locations with at least three in each of the four regions of North America, APAC, EMEA and Latin America.

Most  data traffic these days is generated by cloud computing, but most of the actual data communications--as much as 72 percent--happens within data centers, according to Cisco.


As you likely would guess, hyperscale data centers represent a large portion of overall data, traffic, and processing power in data centers, accounting for 34 percent of total traffic within all data centers and driving 53 percent of in-data-center traffic by 2020.

Hyperscale data centers will also represent 57 percent of all data stored in data centers and 68 percent of total data center processing power.

At the same time, the huge amount of wide area network traffic between hyperscale data centers is causing disintermediation (substitution, or taking out the middleman) in the wide area networking business.

More than half of all WAN traffic now moves on private networks built and operated directly by enterprises, especially app, commerce and content providers.


Alibaba and Oracle also have a notably broad data center presence. The remaining firms tend to have their data centers focused primarily in either the United States (Apple, Facebook, Twitter, eBay, Yahoo) or China (Baidu, Tencent).

In 2018 the Asia-Pacific and Europe-Middle East-Africa  regions featured most prominently in terms of new data centers that were opened.

Among the hyperscale operators, Amazon and Google opened the most new data centers in 2018, together accounting for over half of the total.

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