Immense concentration continues apace in the cloud industry, with hyperscalers expected to comprise 67% of global datacentre capacity by 2031, or 14 times the capacity they had in 2018. Back then, enterprise datacentres accounted for 56% of all datacentre capacity.

That’s according to figures from US-headquartered research organisation Synergy Research Group, which says artificial intelligence (AI) is driving huge and accelerated growth, with hyperscaler capacity expected to double in the next three years.

By the fourth quarter of 2025, Synergy found that hyperscaler-operated datacentres accounted for 1,360 of total sites and 48% of worldwide capacity. Datacentres built by hyperscalers form the bulk of that capacity – 60% of it – with the remaining capacity leased. 

Non-hyperscale colocation capacity accounts for 20% of current totals, while enterprise datacentres account for 32%. 

Synergy expects hyperscaler datacentre capacity to comprise 67% of all capacity in 2031. The share of colocation is expected to drop, although it is still increasing at double-digit rates.  

Enterprises’ on-premise datacentre capacity is expected to drop to 19% of the total by 2031, at a rate of about 2% per year, although even here that decline is not so rapid, largely due to the deployment of AI hardware. 

Synergy’s data is based on several quarterly tracking research services in hyperscale, colocation and enterprise datacentres, and based on datacentre footprint and operations of the world’s major cloud colocation firms, plus tracking the datacentre hardware market.

John Dinsdale, a chief analyst at Synergy Research Group, said AI is driving the world’s datacentre market towards increased concentration in favour of the hyperscalers.

“Cloud and consumer-oriented digital services have been driving changes in datacentre deployment patterns for many years now, but over the last three years, AI technology has accelerated those changes,” he said. 

“We are seeing a different mix of datacentre usage across the regions, but overall, the world is racing towards a situation where hyperscale operators are responsible for the bulk of global datacentre capacity. There are almost 800 hyperscale datacentres in our known future pipeline, enabling hyperscale capacity to double in just three years,” Dinsdale added.

By the third quarter of 2025, worldwide spend on cloud services had reached $107bn, up from $68bn two years before that, in 2023. 

Among the big three, Amazon’s market share has been in a state of gradual decline since 2022. In the third quarter of 2025, it had a 29% market share, down from just under 34% in the third quarter of 2022. 

Meanwhile, the third-quarter 2025 market share for Microsoft was 20%, and 13% for Google Cloud. Both of these are seeing increases in market share, with Microsoft up from 13% in the fourth quarter of 2020. 

Meanwhile, so-called neocloud providers – those that specialise in AI datacentre capacity – have a market share of 2.5%.

Dinsdale said: “Beyond the three market giants, a wide mix of smaller players is competing for traction, but the reality is that third-placed Google remains nearly four times the size of fourth-placed Alibaba, underscoring the widening gulf between the market leaders and the rest of the field.”

Looking to boost the adoption of physical artificial intelligence (AI) across several key applications areas for industrial automation, which the company believes will become the new norm, XCOM RAN by Globalstar has announced the launch of an end-to-end private 5G solution.

The company believes that its mission is to provide the next generation of private 5G infrastructure, which is designed to support “tomorrow’s mission-critical industrial automation requirements”. XCOM RAN claims that it is delivering “unprecedented” performance by taking a new approach to private 5G, increasing capacity by more than four times over current private 5G offerings for “flawless” connectivity in the densest automation environments.

XCOM RAN runs on private 5G shared spectrum allocated around the world, and it can use Globalstar’s licensed Band n53 as a dedicated band for “worry-free” private 5G deployments. Its Supercell architecture is designed to reduce the need for site surveys and RF network design, leading to a private 5G solution that “deploys quickly, is easy to manage, and provides full capacity and coverage” in industrial environments.

The company predicted that the amount and types of physical AI optimisations that can be applied will increase exponentially. It noted that its customers are asking for an underlying wireless network architecture that is comprehensive, can adapt and grow with their automation strategies, and can address the needs of customers and for partners.

The launch introduces an orchestration layer for managing private 5G environments, which the company said speaks to the operational complexity enterprises are running into as deployments scale in the AI era.

The company’s offerings include XCOM RAN’s Supercell architecture, based on O-RAN standards, with XCOM Radio Series with indoor and outdoor options; XCOM Core, which is now offered in addition to private 5G cores from partners; and the XCOM Orchestrator, a multi-tenant management and orchestration system designed to streamline operations and minimise the learning curve for enterprise teams new to private 5G.

XCOM RAN is designed to offer spectrum flexibility with support for Band n48 shared spectrum in the US and Band n78 allocated for private 5G and industrial use in Europe and parts of Asia, while it uses Globalstar Band n53 for licensed, dedicated use. The solution includes the XCOM Industrial Router, an Industry 4.0 CPE device that supports all three spectrum bands, enabling customers to integrate XCOM RAN private 5G into their AI-driven industrial automation environments.

XCOM RAN also works with a set of industry partners to offer a private 5G solution and services that are described as “thoroughly tested, integrated and ready for deployment”. The expanding network of partners is said to be intended to ensure customers benefit from “proven technology, seamless integration” and an end-to-end solution built to scale with their business.

A number of these partners have declared support for the new tech, such as ruggedised industrial solutions provider Zebra Technologies.

“We are at the forefront of adding new technology and spectrum options to our devices to support our customers as they rapidly move toward AI-driven intelligent operations,” said James Poulton, senior vice-president and general manager of enterprise mobile computing at Zebra Technologies.

“We have recently added support for Globalstar Band n53 to our ET 401 Enterprise tablets, giving our customers the opportunity to securely run their most sensitive applications over private, dedicated spectrum on these devices.”

Michiel Lotter, CEO of smart signal booster manufacturer Nextivity, added: “One of the latest trends in enterprise wireless deployments is combining modern DAS systems with private 5G to deliver pervasive indoor and outdoor capacity and coverage.

“These solutions are on the cutting edge of development, and we’re grateful to have a partner like the XCOM RAN team who is working with us to address our customers’ requirements.”