July 25, 2024

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

4 min read

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The get-off of video-led social networking big TikTok has led to its Chinese mum or dad organization, ByteDance, getting categorised as a hyperscale datacentre operator, Synergy Investigation has confirmed.

The analyst house’s quarterly hyperscale datacentre marketplace tracker information exhibits that in just 3 decades, ByteDance has risen from obscurity to grow to be the world’s seventh-most significant datacentre spender.

According to Synergy’s next-quarter knowledge, Amazon remains the world’s largest datacentre trader and spender, followed by Google, Microsoft, Facebook and Apple.

ByteDance is one particular of three Chinese gamers whose datacentre expense and expansion plans have been flagged as noteworthy by Synergy in its second-quarter sector tracker, with Alibaba rated sixth and Tencent eighth in conditions of datacentre devote.

“The simple fact that Amazon, Microsoft and Google proceed to account for more than half of the world’s installed base of hyperscale datacentres is not definitely new information,” said John Dinsdale, main analyst at Synergy Study Group.

“However, what we are viewing is a major thrust from the Chinese hyperscale operators, with a ton of new datacentres staying opened. ByteDance is specifically noteworthy as it is practically a new entrant to the hyperscale scene.

“It was tiny regarded three yrs in the past, but has turn into a significant player, thanks in significant component to the achievements of TikTok.”

The short-sort online video-sharing web-site has risen to prominence more than the past a few several years, with industry estimates suggesting it currently has almost 690 million active every month buyers.

In accordance to Synergy’s details, China – along with the US – is house to much more than half of the world’s hyperscale datacentres, of which there are now 659 in existence as of the conclusion of the 2nd quarter. This is much more than double the amount that had been live and operational in mid-2016.

“The following most common destinations are Japan, Germany, the United kingdom, Australia, Canada, Eire and India, which collectively account for 25% of the complete,” stated the organization in a statement.

In accordance to Dinsdale, Synergy’s information demonstrates that, on typical, 16 new datacentres have come on the internet each individual quarter through the previous a few years.

“The development of hyperscale datacentres is really a great deal on a straight-line trajectory,” he claimed. “On best of that new datacentre develop, the hyperscale operators are also including potential at present services and are on a regular basis ripping out and replacing server hardware that has attained the stop of its operational lifespan. That all provides up to large and escalating quarterly investments in datacentres.”

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Supply url In the last few months, a seemingly unstoppable force has changed the face of social media and entertainment – the video sharing platform TikTok. The app, owned by Chinese tech giant ByteDance, has seen astronomical growth with over 800 million active users worldwide – and it’s having a major impact on its parent company.

Most businesses rely on the Internet to function, meaning they need capacity to store and manage their data. By leveraging its growing user base, ByteDance is able to devote a greater share of its revenue towards data centre investments. This trend is seeing the firm ramping up its investment in hyperscale data centres at an unprecedented rate – and leading the charge for others to follow suit.

Hyperscale data centres have become popular amongst tech companies in recent years. These offer more server space and are built for the purpose of providing a secure environment for the storage and management of data. For ByteDance, these data centres are integral in ensuring the smooth operation of services such as TikTok and Douyin, its Chinese equivalent – while allowing it to meet the explosive demand created by its rapid user growth.

ByteDance’s hyperscale data centre investments are not just confined to China. In June 2019, the firm opened its first data centre outside of mainland China. This was located in Singapore and was the first of four hubs that the tech giant is building across Asia, with the other three located in Indonesia, Malaysia, and South Korea.

ByteDance is also planning to invest in data centres in Europe, which is an indication of the firm’s long-term goals and its belief that there is more potential for growth outside of China. This is positive news for ByteDance and its ability to manage a large and ever-growing user base.

In conclusion, ByteDance is investing heavily in hyperscale datacentres due to the success of TikTok and its Chinese counterpart, Douyin. This shows a commitment from the firm to ensure that its services are able to meet the increased demand from its users, while also expanding its data centre capacity to countries outside of mainland China. All of this, combined with its plans for more data centre expansions in Europe, demonstrates ByteDance’s commitment to ensure its services are delivered as efficiently as possible.