Hyperscale Data Centers: Who Builds Them and How Much Do They Cost

By the end of 2018, the number of hyperscale data centers reached 430. Analysts predict that this year their number will increase to 500. Currently, construction is underway for another 132 hyperscale data centers. Together, they will process 68% of the data generated by humanity. These data center capacities are needed by IT companies and cloud providers.

Hyperscale Data Centers: Who Builds Them and How Much Do They Cost
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Who Builds Hyperscale

Most (40%) of the hyperscale data centers holds are in the USA. At the beginning of summer, plans were announced to convert two power plants in New York State – in the city of Somerset and the village of Cayuga – into hyperscale data centers with capacities of 250 and 100 MW, respectively. A new data center is also being built in the country planning to by Google. It will be constructed in Phoenix, where other data centers are being built with a total capacity of over a gigawatt.

Hyperscale data centers are also being developed in Europe. Over the past year, cloud providers increased data center capacities in Frankfurt, London, Amsterdam, and Paris by 100 MW. According to investors from CBRE, this number will increase by another 223 MW by the end of 2019.

In Norway, one of the most famous data centers is Green Mountain. It is located in an underground bunker and is cooled with water from the nearby fjord. Soon this data center will receive will receive new equipment that will increase its capacity by 35 MW.

How much does this cost

For the upgrades of the European data centers mentioned above, providers spent $800 million (the equipment that boosts data center capacity by one megawatt costs between $6.5 million and $17 million). For the upgrade of power plants in New York State (by preliminary estimates), they plan to attract $100 million. Building hyperscale data centers from scratch is even more expensive. In 2017, representatives from Google

reported , that over the past three years, the company has spent $30 billion on expanding its data center network. Since then, this figure has only increased.Recently, it became known that the IT giant

plans to invest another $1.1 billion in the development of Dutch data centers. As for other organizations, Microsoft and Amazon spend about $10 billion annually on data center infrastructure development. an additional $1.1 billion for the development of Dutch data centers. As for other organizations, Microsoft and Amazon spend $10 billion annually on the development of data center infrastructure.

In addition to the costs of expanding and building new data centers, companies spend money on their maintenance. It is expected that by 2025, data centers will consume one-fifth of the electricity produced on the planet.

According to According to estimates According to experts from the U.S. Natural Resources Defense Council, American data center operators spend about $13 billion annually on electricity.

Hyperscale Data Centers: Who Builds Them and How Much Do They Cost
Photo - Ethen Rera — CC BY-SA

Almost half of the consumed energy account for is used for air conditioning systems. Therefore, new technologies are being developed today to optimize cooling processes in data centers. Examples include immersion cooling and intelligent algorithms for managing airflow. We discussed them in one of our previous articles.

An alternative trend is edge computing.

Hyperscale data centers require significant investments in infrastructure. Therefore, not all companies have the capability to build them. There is also an opinion in the IT industry , that large data centers are not flexible enough to address the needs of financial and educational sectors, where data needs to be processed at the edge.This is why, in parallel with hyperscale data centers, another trend — edge computing — is developing in the IT industry. Edge computing data centers often take the form of modular systems. They possess relatively modest computing capabilities but are cheaper than their hyperscale counterparts and consume less electricity. Edge computing additionally reduces costs for processing and transferring data by bringing their source closer, compared to traditional data centers.

The technology is already

being utilized in retail, banking, and the Internet of Things industry. According to use expert estimates , the number of data centers located at the edge is expected to triple by 2025. Meanwhile, Markets Insider reports that in three years, the volume of the edge computing marketwill reach $6.7 billion. We provide private and hybrid cloud services and assist companies in managing IT services. This is what we discuss in our corporate blog:

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Source: habr.com

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