Hyperscale Cloud Market Report 2025

The hyperscale cloud market size has grown rapidly in recent years. It will grow from $386.87 billion in 2024 to $461.17 billion in 2025 at a compound annual growth rate (CAGR) of 19.2%. The growth in the historic period was driven by the increasing demand for virtualization technologies, the rise of enterprise mobility trends, greater investments in data center infrastructure, the growing reliance on SaaS-based solutions, and the expanding number of internet-enabled devices.

The hyperscale cloud market size is expected to see rapid growth in the next few years. It will grow to $919.85 billion in 2029 at a compound annual growth rate (CAGR) of 18.8%. The growth in the forecast period is expected to be driven by the rising adoption of edge computing, increasing demand for industry-specific cloud platforms, a stronger focus on energy-efficient hyperscale infrastructure, the growing integration of quantum computing capabilities, and the expanding use of sovereign cloud solutions. Key trends anticipated include advancements in quantum computing, integration for hyperscale systems, the development of advanced orchestration tools for cloud-native applications, the creation of automated compliance and governance solutions, innovation in zero-trust security architectures, and progress in neuromorphic computing for cloud optimization.

The increasing internet penetration is expected to drive the growth of the hyperscale cloud market in the coming years. Internet penetration refers to the share of the population with access to the internet and online services. Its growth is fueled by the rising dependence on digital tools for communication and access to services, enabling people to stay connected in a globalized world. Hyperscale cloud supports this expansion by providing scalable and reliable digital infrastructure that hosts massive volumes of data and computing power across global data centers, ensuring broad access to online services and applications. For example, in November 2022, the International Telecommunication Union, a Switzerland-based organization specializing in communication and information technologies, reported that 5.3 billion people, or 66% of the global population, were using the internet, marking a 6.1% increase from 2021. This surge in connectivity has been a key factor driving the growth of the hyperscale cloud market.

Major companies in the hyperscale cloud market are advancing innovative technologies such as large-scale workloads with auto-scaling to improve efficiency, optimize resource use, and provide seamless scalability for enterprises. Large-scale workloads with auto-scaling are computing tasks that automatically scale resources up or down based on demand, ensuring both performance and cost-effectiveness. For example, in June 2025, Advanced Info Service Public Company Limited (AIS), a telecommunications and digital services provider based in Thailand, introduced a hyperscale cloud service tailored for local artificial intelligence (AI) workloads. This service delivers high-performance computing power and low-latency connections to support AI model training. It is optimized for large-scale data processing and AI applications, enabling businesses and developers to manage compute-intensive workloads effectively. Additionally, it provides local cloud resources that strengthen data sovereignty and ensure compliance with regional data regulations.

In August 2024, Advanced Micro Devices (AMD) Inc., a US-based semiconductor company, acquired ZT Systems Inc. for $4.9 billion. This acquisition is intended to strengthen AMD’s data center artificial intelligence systems by utilizing ZT Systems’ expertise in hyperscale server design and manufacturing. ZT Systems Inc. is a US-based company that provides hyperscale cloud services.

Major players in the hyperscale cloud market are Google LLC, Microsoft Corporation, Alibaba Group Holding Limited, NTT Communications Corporation, Amazon Web Services Inc., Dell Technologies Inc., Huawei Technologies Co. Ltd., Tencent Holdings Limited, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, Fujitsu Limited, Hewlett Packard Enterprise Development LP, Lumen Technologies Inc., Salesforce Inc., DigitalOcean LLC, Altus Group Limited, OVH Groupe SAS, Wasabi Technologies Inc.

North America was the largest region in the hyperscale cloud market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in hyperscale cloud report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the hyperscale cloud market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

Hyperscale cloud is a large-scale online service designed to expand or contract quickly to meet changing demand. It relies on vast networks of computers to store data and run applications for many users simultaneously, enabling companies to serve millions without performance issues. It is built for flexibility, reliability, and the ability to handle very large workloads.

The main types of hyperscale cloud include platform as a service (PaaS), software as a service (SaaS), infrastructure as a service (IaaS), business process as a service (BPaaS), and cloud management and security services. Platform as a service (PaaS) is a cloud computing model that offers developers a ready-to-use platform with tools, infrastructure, and services to build, deploy, and manage applications without dealing with underlying hardware or software. Deployment models include public cloud, private cloud, hybrid cloud, multi-cloud, and community cloud. Hyperscale cloud is used by small and medium-sized enterprises (SMEs) as well as large enterprises, with applications in areas such as the Internet of Things (IoT), cloud computing, big data analytics, and more. It serves industries including manufacturing, energy and utilities, banking, financial services and insurance (BFSI), healthcare, e-commerce and retail, information technology (IT) and telecom, automotive, and others.

The hyperscale cloud market research report is one of a series of new reports that provides hyperscale cloud market statistics, including the hyperscale cloud industry global market size, regional shares, competitors with the hyperscale cloud market share, detailed hyperscale cloud market segments, market trends, and opportunities, and any further data you may need to thrive in the hyperscale cloud industry. This hyperscale cloud market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The hyperscale cloud market consists of revenues earned by entities by providing services such as networking services, security services, storage services, disaster recovery, and backup services. The market value includes the value of related goods sold by the service provider or included within the service offering. The hyperscale cloud market also includes sales of cloud infrastructure systems, high-capacity storage devices, networking equipment, and supporting software tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by their creators.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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