Hyperscale Operators to Dominate Data Center Capacity by 2031
Hyperscale operators currently control 48% of global data center capacity, projected to increase to 67% by 2031. The rise is attributed to substantial growth in hyperscale facilities, while on-premises data centers are expected to decline significantly.
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As of Q4 2025, hyperscale companies operate 1,360 large data centers, representing 48% of global capacity. Of this, 60% are owned and built facilities. By 2031, projections indicate hyperscale operators will increase their market share to 67%, while on-premises capacity will fall to 19%.
Non-hyperscale colocation capacity is currently 20% of the total. Despite a decrease in market share, colocation capacity is expected to grow annually at nearly double-digit rates. Generative AI and GPU infrastructure are driving growth in on-premises data centers, which will still see a gradual decline in overall market share. The total data center capacity is anticipated to triple, with nearly 800 hyperscale data centers planned.
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