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Home Technology Cloud and Platforms

State of hyperscaler growth in 2025

FutureIoT Editors by FutureIoT Editors
April 11, 2025
Photo by panumas nikhomkhai: https://www.pexels.com/photo/light-on-computer-hardware-17489150/

Photo by panumas nikhomkhai: https://www.pexels.com/photo/light-on-computer-hardware-17489150/

Recent data from Synergy Research Group reveals that hyperscale companies achieved a remarkable revenue growth of over 10% in 2024, reaching $2.65 trillion, driven primarily by digital services. This trend presents both opportunities and challenges for leaders in the region.

1. Surge in digital services

The growth in digital services, which increased by 13% in 2024, is particularly noteworthy. Key segments such as cloud computing, social networking, and Software as a Service (SaaS) saw substantial growth rates of 23%, 20%, and 18%, respectively. This shift underscores the importance of digital transformation initiatives for organisations aiming to remain competitive in the market.

John Dinsdale

John Dinsdale, chief analyst at Synergy Research Group, emphasises the necessity of capital investments in this context: “They operate in capital-intensive infrastructure markets, where huge ongoing investments are essential in order to be leading players”.

For COOs and CIOs, this means prioritising investments in digital infrastructure to support growth in these high-demand areas.

2. The role of AI and GPU services

The report highlights that generative AI platform services and GPU as a Service (GPUaaS) have more than doubled in size in 2024. This rapid expansion indicates a growing reliance on AI technologies across various sectors, making it imperative for organisations to integrate AI capabilities into their operations. As AI continues to fuel growth in digital services, leaders must consider how to leverage these technologies to enhance efficiency and drive innovation.

3. Capital expenditure trends

Despite concerns regarding the rising capital expenditure (capex) among hyperscale companies, the rationale becomes clear when considering the scale of digital services being supported. In 2024, the capex to revenue ratio for these companies increased but remained below 12% on average. This suggests that while investments are rising, they are still manageable relative to revenue growth, allowing for sustained funding of necessary infrastructure.

The insights from Synergy Research Group highlight the critical need to adapt to the accelerating growth of digital services and the increasing importance of AI technologies. By strategically investing in infrastructure and embracing digital transformation, organisations can position themselves to thrive in an increasingly competitive landscape.

Related:  The future of integrated business planning
Tags: data centre trendsSynergy Research Group
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