The rise of Hyperscale Data Centers

25 November 2019

The demand for high-speed data is at an all-time high, with no signs of slowing down any time soon. But keeping up with this traffic is operationally expensive, especially for data centers. There is a growing trend for developers, operators and suppliers to switch to hyperscale data centers; this refers to a facility with more 15,000+ servers inside.

Hyperscale data centers are changing up the data center industry due to their scalability. These facilities are large enough to serve thousands of organisations all at once and benefit greatly from economies of scale. Having fewer implementations decreases complexity and the running costs of having many smaller data center operations.


Market potential

There’s huge market potential for hyperscale data centers. For example, data giants like Netflix and Facebook require some of the world’s largest amounts of data. These businesses benefit from data centers that operate with little or no direct human control. For example, a reliable service which automatically detects and recovers from failures. This is imperative with the amount of people relying on this data. In addition, hyperscale data centers need to be able to operate at fibre optic speed. A necessity for achieving these speeds are high-speed optical transceivers, such as 400G modules. TXO Optics can support you by providing premium, compatible high data-rate optical transceivers.



Although there are numerous benefits to large-scale data centers, smaller companies cannot afford to run them by themselves. Instead, colocation data centers will play a role here. Colocation consists of one data center owner selling space, power and cooling to other customers in a specific location. Typically the customer owns their equipment and retains control over its design and useage, but the daily management of the data center is overseen by the colocation provider. Colocation allows the customer to save on operational costs (OPEX) and complexity by sharing these expenses rather than paying for everything themselves. This arrangement will be seen more in the industry going forward. Gartner predicts that by 2025, 80% of enterprises will shut down smaller data centers and migrate to third-party hyperscale data centers.


Benefits of Hyperscale data centers

There are many benefits for enterprises migrating to shared enterprises, including:

  • Space An obvious benefit to choosing a hyperscale data center is for its huge amount of space. These operations can house 15,000+ servers, so storing huge amounts of equipment here is easy.
  • Lower costs – Other than paying for rent, those who use colocation hyperscale data centers cut their operational costs massively. The amount of power they use is huge and so the cost to run them is expensive. This can be avoided by sharing the site costs between several parties.
  • Improved security – Hyperscale data centers are a great option for securing assets. They are usually manned with security guards at all times and have a reliable security system installed. This is beneficial for many companies that use these premises for storing legacy equipment safely too.
  • Environmental benefits – Reducing the amount of data centers and opting for a large-scale data center has great environmental benefits.


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