The Register: Hyperscalers to eat 61% of global datacenter capacity by decade’s end

Jun 25, 2025

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Source URL: https://www.theregister.com/2025/06/25/hyperscaler_datacenter_capacity/
Source: The Register
Title: Hyperscalers to eat 61% of global datacenter capacity by decade’s end

Feedly Summary: Cloud and AI demand propel rapid buildout as on-prem share drops to 22%
Hyperscale operators are expected to account for 61 percent of all datacenter capacity by 2030, thanks in part to the growth of cloud services and rising demand for compute to feed AI.…

AI Summary and Description: Yes

Summary: The text addresses the significant impact of cloud and AI demand on the infrastructure landscape, noting a decline in on-premises data center share. The growing reliance on hyperscale operators highlights the ongoing transformation in data center capacity allocation, driven by the need for enhanced compute resources for AI applications.

Detailed Description: The narrative outlines the evolving dynamics in the data center market, emphasizing the transition from on-premises infrastructure to cloud-centric solutions. This shift is crucial for security and compliance professionals in understanding future security architectures and the implications for data protection.

– **Hyperscale Data Centers**: By 2030, hyperscale operators are projected to hold 61% of all data center capacity. Their scale enables them to meet the massive compute demands driven by AI advancements.
– **Decline of On-Premises Infrastructure**: The share of on-premises data centers is expected to drop to 22%, indicating a significant shift in how businesses approach their IT infrastructure.
– **AI Demand**: As organizations increasingly adopt AI technologies, there is a corresponding need for robust and efficient cloud resource utilization for compute power.

Implications for Security and Compliance:
– **Security Challenges**: The transition to cloud environments introduces new security challenges, necessitating a reevaluation of existing security models to accommodate multi-cloud architectures and potential vulnerabilities associated with hyperscalar platforms.
– **Regulatory Considerations**: Compliance professionals will need to adapt governance strategies to align with the evolving data management landscapes shaped by these technological advancements.
– **Investment Strategies**: Infrastructure security must evolve alongside the demands for AI, necessitating investments in newer security practices to protect sensitive data processed in cloud environments.

The analysis underscores the necessity for security practitioners to stay informed about these trends while proactively adapting security frameworks to safeguard against emerging vulnerabilities in cloud computing and AI deployments.

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