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Hyperscale Data Center Growth: Upside for Public Cloud MSPs?

The total number of large data centers operated by hyperscale providers — names like Amazon Web Services (AWS), Microsoft Azure and Google Cloud — increased to 541 at the end of the Q2 2020, more than double the mid-2015 count, according to Synergy Research Group.

That expansion could be good news for the Top 200 Public Cloud MSPs — many of which provider multi-cloud managed services for various infrastructure, platform and on-demand applications.

John Dinsdale, vice president, chief analyst, Synergy Research

“There were 100 new hyperscale data centers opened in the last eight quarters, with 26 of those being the first half of this year,” said John Dinsdale, a chief analyst at Synergy Research Group. “COVID-19 has caused some logistical issues but these are robust numbers, demonstrating the underlying strength of the services that are driving these investments. We have visibility of a further 176 data centers that are at various stages of planning or building, which is good news for data center hardware vendors and wholesale data center operators.”

It could also be good news for hardware partners to capitalize on the need for equipping these facilities with technology, if they can make inroads into the lucrative — and ever-expanding — install base of data center technology. And a growing number of MSPs might find great sales and support opportunities delivering data center, cloud services and capacity to end-user customers.

Amazon AWS, Microsoft Azure, Google: Cloud Expansion

The research analyzed the data center footprint of 20 global cloud and internet service firms, including the largest operators in SaaS, IaaS, PaaS, search, social networking, e-commerce and gaming. The companies with the broadest data center footprint are the leading cloud providers: Amazon, Microsoft, Google and IBM.

Each has 60 or more data center locations with at least three in each of the four regions – North America, APAC, EMEA and Latin America. Oracle also has a notably broad data center presence. The remaining firms tend to have their data centers focused primarily in either the US (Apple, Facebook, Twitter, eBay) or China (Alibaba), Baidu, Tencent).

Among the hyperscale operators, Amazon and Google opened the most new data centers in the last 12 months, accounting for over half of the total, with Microsoft and Oracle being the next most active companies. Synergy research indicates that over 70 percent of all hyperscale data centers are located in facilities that are leased from data center operators or are owned by partners of the hyperscale operators.

Regional Growth

The EMEA and Asia-Pacific regions continue to have the highest growth rates, though the US still accounts for almost 40 percent of the major cloud and Internet data center sites, according to the research.

The next-most-popular locations are China, Japan, the UK, Germany and Australia, which collectively account for another 30 percent of the total. Over the last four quarters new data centers were opened in fifteen different countries, with the US, South Korea, Switzerland, Italy, South Africa, and Bahrain having the largest number of additions.

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