Description
The hyperscale cloud sector continues to push forward and things are accelerating materially. Hyperscale clouds are signing multi-billion dollar deals at a steady pace and this is set to move the needle aggressively in the next few years as things come online. The demand profile continues to be robust and hyperscalers continue to see demand outpacing supply. This situation is not expected to change in the foreseeable future.
The RPO backlog is a strong indication for how much cloud infrastructure uptake has been committed to and coming through the pipeline. But it should be kept in mind that constraints will determine how much of the accumulating backlog will be recognised as revenue and on what kind of timeline. The early signs are that progress is being made as hyperscalers are procuring unprecedented volumes of capacity and also disclosing projections for when they expect certain portions of the RPO backlog to come online. The hyperscalers also continue to make elevated CapEx commitments, signaling ongoing momentum.
The rise of AI is a global phenomenon, but as with most technology adoption cycles, the US is seeing the bulk of early activity, while Europe and APAC are following behind it. Things are playing out this way again, and in the hyperscale world that means the growth surge from Chinese hyperscalers is not quite underway in full force. The growth set to come from APAC presents significant upside that will create more momentum for the sector on a global basis.
This report provides comprehensive growth rate projections and total revenue estimates for the world’s eight hyperscale cloud platforms (up from seven in previous years) on a five-year basis. We recently added ByteDance’s public cloud service BytePlus to these numbers. Included are geographic splits and a total market summation. Hyperscale cloud continues to be on an aggressive growth trajectory and will cross the two trillion-dollar mark and reach $2.612t in value in 2031, growing at a five-year CAGR of 42.6%. These numbers have been climbing throughout the year as AI continues to push the pace of growth.
