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


The take-off of video-led social networking giant TikTok has actually led to its Chinese moms and dad company, ByteDance, being classified as a hyperscale datacentre operator, Synergy Research study has validated.

The analyst house’s quarterly hyperscale datacentre market tracker information shows that in just 3 years, ByteDance has actually increased from obscurity to become the world’s seventh-biggest datacentre spender.

According to Synergy’s second-quarter information, Amazon remains the world’s most significant datacentre investor and spender, followed by Google, Microsoft, Facebook and Apple.

ByteDance is one of three Chinese players whose datacentre financial investment and growth plans have been flagged as noteworthy by Synergy in its second-quarter market tracker, with Alibaba ranked sixth and Tencent eighth in regards to datacentre spend.

“The reality that Amazon, Microsoft and Google continue to account for over half of the world’s set up base of hyperscale datacentres is not truly brand-new news,” stated John Dinsdale, primary analyst at Synergy Research study Group.

“Nevertheless, what we are seeing is a big push from the Chinese hyperscale operators, with a lot of new datacentres being opened. ByteDance is particularly noteworthy as it is virtually a new entrant to the hyperscale scene.

“It was unknown 3 years back, however has actually become a significant player, thanks in large part to the success of TikTok.”

The short-form video-sharing website has risen to prominence over the previous 3 years, with industry price quotes recommending it currently has almost 690 million active monthly users.

According to Synergy’s data, China– together with the US– is house to over half of the world’s hyperscale datacentres, of which there are now 659 out there since the end of the second quarter. This is more than double the number that were live and functional in mid-2016.

“The next most popular places are Japan, Germany, the UK, Australia, Canada, Ireland and India, which jointly account for 25% of the total,” said the business in a statement.

According to Dinsdale, Synergy’s data shows that, usually, 16 brand-new datacentres have actually come online every quarter during the past three years.

“The growth of hyperscale datacentres is pretty much on a straight-line trajectory,” he stated. “On top of that brand-new datacentre build, the hyperscale operators are likewise including capacity at existing centers and are routinely ripping out and replacing server hardware that has actually reached the end of its operational life expectancy. That all adds up to substantial and growing quarterly investments in datacentres.”


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