Are hyperscalers moving away from self-build?
The data centre industry has watched the share of hyperscaler capacity served by colocation operators grow steadily over the past decade. A common view across the industry is that hyperscalers are increasingly moving away from owning their own data centres and towards leasing capacity from third-party operators. Or, to put it more simply, that colocation is becoming the preferred hyperscaler strategy
But does the data bear that out?
Our new Trends in Hyperscaler Build Strategies Report tests the hypothesis against DC Byte data.
Why This Report Matters: Strategic Insight for Operators, Suppliers and Investors
This report helps senior teams understand which hyperscalers favour colocation over self-build and differences in approach across markets. It provides a data-led snapshot of the current state of hyperscaler build trends.
The answers the questions:
- Which hyperscalers lean on colocation in which markets, versus building their own?
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Where, and how fast, has colocation’s share of hyperscaler capacity been growing?
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Which colocation operators are winning the new hyperscaler demand?
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Which markets are absorbing the most new capacity?
Exclusive Highlights from the Report
- 100% or near colocation among Oracle, ByteDance, Alibaba, CoreWeave and Tencent.
- 44% of pipeline capacity is colocation.
- 6/8 of the markets with most new colocation capacity are in the US.
- 100% increase in colocation’s share of hyperscale in the last eight years.
- Just 21% of Virginia’s pipeline capacity is colocation.
- Less than 50% of Google, AWS, Meta, and Microsoft’s capacity is colocation.
This report is informed by DC Byte’s Market Analytics, providing aggregated information on over 8,300 data centre facilities around the world, including hyperscale, self-build and colocation facilities.
Download Your Complimentary Report Today
Whether you are an operator benchmarking market conditions, an investor evaluating long-term risk or a supplier planning ahead of demand, this report provides the clarity needed to act with confidence.
