Solmar Insights
The global hyperscale data center market is set to climb from $80.9 billion in 2025 to $624.2 billion by 2035, according to a report by Global Market Insights Inc. The projected compound annual growth rate of 22.2% is fueled by surging demand for AI-driven compute, high-performance computing, and accelerated public cloud migrations worldwide.
Key figures
$624.2 billion projected market size by 2035
22.2% compound annual growth rate 2025 to 2035
93.9% share hardware segment in 2025
42.8% North American market share in 2025
Drivers of explosive market growth
The primary forces behind projected market expansion are continued advancements in AI infrastructure and the migration of enterprise workloads to public cloud platforms. Hyperscale operators are deploying large numbers of GPU-intensive servers to meet the computational needs of AI model development and high-performance data processing, substantially increasing rack power densities beyond those of conventional facilities. These trends are accelerating investments in hyperscale data center construction worldwide and boosting associated demand for network, storage, and power management equipment.
As businesses digitize core functions and shift to SaaS and public cloud environments, hyperscale providers are responding with new, larger-scale facilities. This transformation is also intensifying competition among operators and equipment vendors to deliver highly efficient, scalable digital infrastructure that supports both AI and traditional enterprise applications.
Hardware and cooling technology trends
Hardware dominates hyperscale spending, comprising 93.9%, or $76 billion, of the market in 2025. Investment is focused on servers, storage arrays, network devices, uninterruptible power supplies, and, increasingly, advanced cooling systems that can handle new thermal loads associated with clustered GPUs for AI workloads.
In 2025, air-based cooling remained the largest segment, with a 52.8% share valued at $42.7 billion, as facilities adapted existing designs to higher power densities. However, the rapid rise of direct-to-chip (DTC) liquid cooling signals an accelerating shift in thermal management practices. DTC approaches enable efficient removal of heat by circulating liquid coolant through cold plates connected directly to processors and memory chips, making them attractive for retrofitting and new builds alike without requiring a complete infrastructure overhaul.
Renewable energy and sustainability measures
As hyperscale operators drive massive capacity growth, energy procurement and sustainability have become integral to strategy. In 2025, the technology sector was responsible for almost 40% of corporate renewable power purchase agreements (PPAs), highlighting the role of major cloud providers in the clean energy transition.
To support the expansion of power-hungry data centers and assure long-term energy reliability, leading hyperscale companies are signing large-scale renewable PPAs and integrating solar, wind, and other renewables into their operations. These power arrangements not only help operators achieve climate goals but also provide rate stability and improve the economic case for new capacity deployments in regions with mature renewable markets.
North America’s leading role in capacity expansion
North America accounted for 42.8% of the global hyperscale data center market in 2025, underscoring its position as the primary region for large-scale digital infrastructure investment. Major hubs continue to benefit from significant capital spending by Amazon Web Services, Microsoft Azure, Google Cloud, Meta Platforms, and Oracle, each growing its data center footprint in response to AI and cloud demand.
Spending in the region is focused on new greenfield facilities, expansions of existing campuses, modernizations for advanced cooling, and renewable energy integration. These investments, clustered around both established and emerging data center markets, affirm North America’s foundational position in global digital infrastructure provisioning.
Competitive strategies among operators
The competitive landscape for hyperscale data center construction and operations is defined by sustained infrastructure expansion, cross-industry partnerships, and a focus on technological and sustainability innovation. Leading players named in the report, Schneider Electric, Vertiv Group, Dell Technologies, HPE, Cisco Systems, Huawei Technologies, and others, are investing in proprietary cooling, high-density compute platforms, and integrated energy solutions to meet new workload and sustainability requirements.
Operators are actively growing their global footprints through greenfield builds, acquisitions, and collaborations with equipment vendors and construction firms. The speed and scale of expansion is expected to intensify, with specialization in AI compute, green power procurement, and modular building practices shaping the next phase of hyperscale growth worldwide.
What this means for buyers
Data center capacity, hardware, and renewable energy in North America will see intensified competition and deal activity. The $624.2 billion projected global market size by 2035 signals a need for buyers to secure new capacity and sustainable energy supply earlier and at larger scale. Buyers will move faster on pre-leasing, long-term PPAs, and advanced cooling retrofits this quarter to align with operators’ aggressive expansion timelines.
Reporting via the original publisher
