Amazon, Microsoft and Google now represent 60 percent of all hyperscale data center capacity, while doubling their capacity over the last four years, says Synergy Research. The firm expects total hyperscale data center capacity will double again in the next four years.
Synergy Research sees non-hyperscale colocation data centers accounting for 22 percent of worldwide capacity, with on-premise data centers rounding out 37 percent of the total.
In turn, that capacity drives demand for connectivity as well, as a huge portion of global long-haul capacity is used to connect data centers. Estimates peg the percentage of “data center to data center” capacity between 30 percent to 50 percent of total. Add in connections to internet points of presence and as much as 75 percent of total global backbone networking capacity connects data centers with other data centers and internet points of presence.
The advent of artificial intelligence is likely to drive capacity trends.
The AI "data center to data center" interconnection services market is expected to grow from $4.2 billion in 2023 to $9.1 billion by 2027, a CAGR of 16.8 percent, according to analysts at Gartner.
Gartner also forecasts the overall "data center to data center" capacity market is forecast to grow from $48 billion in 2023 to $72 billion by 2027, a CAGR of 10.6 percent.
According to IDC, the AI-driven "data center to data center" interconnection services will account for 22 percent of the total "data center to data center" capacity market by 2025, up from 15 percent in 2023.
The global "data center to data center" capacity market is projected to reach $64 billion by 2025, growing at a CAGR of 12.7 percent from 2023, IDC also believes.
Forrester researchers believe the market for AI-enabled "data center to data center" interconnection services will grow at a CAGR of 19 percent from 2023 to 2027, reaching $8.5 billion by 2027.
Forrester also estimates the overall "data center to data center" capacity market will grow at a CAGR of 11 percent from 2023 to 2027, reaching $68 billion by 2027.
Markets and Markets predicts the AI "data center to data center" interconnection services market will grow from $4.6 billion in 2023 to $10.2 billion by 2027, at a CAGR of 17.3 percent .The global "data center to data center" capacity market is forecast to grow from $51 billion in 2023 to $78 billion by 2027, at a CAGR of 11.2 percent, the firm says.
The point is that if data center capacity keeps doubling every four years, then “data center to data center” connections are going to grow as well. The issue is “how much” growth will be needed and how long the trend might last.
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