Hyperscalers will own two-thirds of data center capacity by 2031

Enterprise AI demand has driven leading providers to boost infrastructure investments, according to a Synergy Research Group report.

Dive Brief: 

• Hyperscalers including Google, Microsoft and AWS will account for 67% of data center capacity by 2031, driven by significant AI infrastructure investments, according to a report from Synergy Research Group published Tuesday. Enterprise on-prem data centers will drop from 56% of total data center capacity in 2018 to 19% by 2031, the firm said.
• “Almost 60% of that hyperscale capacity is now in own-built, owned data centers with the balance being in leased facilities,” according to the report. “With non-hyperscale colocation capacity accounting for another 20% of total capacity, that leaves on-premise data centers with just 32% of the total.” 
• On-prem data center’s share of total capacity remained relatively constant over the last eight years, even seeing a boost from enterprise AI deployments and GPU servers, according to the ...