New data from Synergy Research Group shows that large data centres operated by hyperscale companies now account for 41% of the worldwide capacity of all data centres and have recently surpassed 1,000.
Hyperscale operators
More than half of that hyperscale capacity is now in own-built, owned data centres, with the balance being in leased facilities.
Another 22% of capacity is non-hyper scale colocation capacity, while on-premise data centers account for 37%. This starkly contrasts with six years ago, when almost 60% of data centre capacity was in on-premise facilities.
Looking ahead
Synergy predicts hyperscale operators will account for over 60% of all capacity in 2029, while on-premise will drop to just 20%.
The rapid growth of hyperscale capacity, projected to almost triple over the next six years, will significantly impact the total capacity of all data centres, causing it to rise rapidly.
The colocation share of total capacity will slowly decrease while colocation capacity will continue to rise steadily.
While the on-premise share of the total capacity is projected to drop by almost three percentage points per year, the actual capacity of on-premise data centres will remain relatively stable.

John Dinsdale, a chief analyst at Synergy Research Group, said, “Enterprises are also choosing to house an ever-growing proportion of their data centre gear in colocation facilities, further reducing the need for on-premise data centre capacity. The rise of generative AI technology and services will only exacerbate those trends over the next few years, as hyperscale operators are better positioned to run AI operations than most enterprises.”