November 30, 2022


The Internet Generation

TikTok’s take-off fuels hyperscale datacentre spend by parent company ByteDance


The consider-off of video clip-led social networking huge TikTok has led to its Chinese parent corporation, ByteDance, being categorized as a hyperscale datacentre operator, Synergy Study has confirmed.

The analyst house’s quarterly hyperscale datacentre marketplace tracker data shows that in just three yrs, ByteDance has risen from obscurity to develop into the world’s seventh-biggest datacentre spender.

In accordance to Synergy’s 2nd-quarter data, Amazon remains the world’s major datacentre trader and spender, followed by Google, Microsoft, Facebook and Apple.

ByteDance is a single of three Chinese players whose datacentre financial investment and expansion designs have been flagged as noteworthy by Synergy in its next-quarter market place tracker, with Alibaba rated sixth and Tencent eighth in terms of datacentre spend.

“The actuality that Amazon, Microsoft and Google continue on to account for more than 50 % of the world’s mounted base of hyperscale datacentres is not genuinely new news,” stated John Dinsdale, chief analyst at Synergy Investigation Team.

“However, what we are viewing is a big push from the Chinese hyperscale operators, with a whole lot of new datacentres getting opened. ByteDance is particularly noteworthy as it is almost a new entrant to the hyperscale scene.

“It was very little known three decades back, but has become a main player, many thanks in massive component to the achievement of TikTok.”

The small-sort online video-sharing site has risen to prominence more than the past three several years, with market estimates suggesting it at this time has pretty much 690 million energetic monthly users.

According to Synergy’s details, China – together with the US – is property to far more than half of the world’s hyperscale datacentres, of which there are now 659 in existence as of the close of the next quarter. This is far more than double the variety that ended up stay and operational in mid-2016.

“The upcoming most well-liked spots are Japan, Germany, the Uk, Australia, Canada, Eire and India, which collectively account for 25% of the complete,” explained the corporation in a assertion.

In accordance to Dinsdale, Synergy’s data shows that, on common, 16 new datacentres have arrive on the internet every single quarter for the duration of the earlier 3 several years.

“The development of hyperscale datacentres is quite a great deal on a straight-line trajectory,” he stated. “On best of that new datacentre build, the hyperscale operators are also including capability at current amenities and are consistently ripping out and changing server hardware that has reached the conclusion of its operational lifespan. That all adds up to massive and increasing quarterly investments in datacentres.”