Every time you watch a video, send a message, or save a file online, big facilities work behind the scenes. These are called a hyperscale data center. They store and process huge amounts of data to keep our digital world running.
Research from Mordor Intelligence shows that the need for these centers is growing very fast. Most people do not see them, but they are very important. Without a hyperscale data center, services like Netflix, Facebook, and Gmail would not work. As we use more digital services, these centers become even more important.
What does a hyperscale data center do?
A hyperscale data center helps run large digital services by storing and processing a lot of data. It gives space and power for the biggest online platforms in the world. For example, it supports social media, cloud storage, and apps that millions of people use every day.
A hyperscale data center is a very big building that has at least 5,000 servers. As mentioned in the earlier research, these centers provide more than 20 megawatts of power to run all the computers. To understand this, 20 megawatts can power about 16,000 homes. Companies like Amazon, Google, and Microsoft use these data centers to run their services worldwide. Other big software and content companies also rely on them.
The demand for these facilities is growing fast. The same research shows the market reached USD 167.34 billion in 2025. Experts expect it will grow to USD 602.39 billion by 2030. This means the market will grow about 23.58% each year, making it one of the fastest-growing technology areas in the world.
Why are hyperscale data centers expanding?
The expansion of a hyperscale data center happens because of several factors. These factors include:
- Artificial Intelligence (AI) demand: AI needs much more computing power than normal software. AI training racks now use over 50 kilowatts of electricity, more than older servers.
- Cloud computing growth: Many businesses are moving their work to the cloud. Cloud providers use 75.6% of all hyperscale data centers.
- Government rules: Some countries require data to stay inside their borders. Companies like AWS are spending EUR 7.8 billion in Germany to follow these rules.
Current challenges
According to the previous report, Even though this industry is growing fast, it still faces three main problems:
- Water use: Old cooling systems use almost 7 million gallons of water every year for each megawatt. Places like California now limit water use, so companies must use more expensive cooling methods.
- Chip shortages: AI GPUs for a hyperscale data center can take over 12 months to get. Companies need to plan their growth much earlier.
- Higher energy costs: Countries such as Singapore and the Netherlands added energy taxes. This can make running costs go up by 15% or more.
Connectivity needs in southeast asia
A hyperscale data center needs strong infrastructure to work well, store large amounts of data, and grow when demand increases, especially in Southeast Asia. More people are using digital services, so reliable networks and systems are becoming very important in the region. To support this demand, big cloud companies are investing billions in Malaysia, Indonesia, Thailand, and Singapore. These data centers also need stable and fast connections. ARNet provides dark fiber networks to give them this connectivity. Our network covers over 10,000 kilometers and links 60 data centers across the region, keeping them connected.
We have all the telecom licenses needed in each country, so our customers can work with a single provider. Because we build and maintain our own network, we can provide fast setup and high-quality service for a hyperscale data center. This network focuses on major cities like Bangkok, Kuala Lumpur, Johor Bahru, Singapore, Jakarta, and Batam, where demand is highest.
As Southeast Asia’s digital economy grows, strong connections become even more important. ARNet gives operators the foundation they need for their networks. Companies planning a new hyperscale data center in the region can rely on our solutions to support their growth.
About the Author
Nabila Choirunnisa, Digital Marketing Executive at ARNet