Data Center Infrastructure Market is Projected to Reach USD 100 Billion by 2027
According to a recent study from market research firm Global Market Insights, The need for data center infrastructure market management among organizations to offer higher energy-efficiencies will be positively driven by the influx of cloud computing, Big Data, and AI solutions. The surge in internet infrastructure activities has led to the generation of large quantities of data by individuals and connected devices.
The rising levels of data traffic have placed an immense power burden on data centers on account of the significant jump in the usage of IoT devices. This has in turn pushed data center operators to increasingly adopt efficient and cost-effective data center infrastructure solutions.
As per a report by Global Market Insights, Inc., the global data center infrastructure market could reach USD 100 billion in annual revenue by 2027.
Owing to the adoption of data analytics, cloud computing, and emerging technologies such as AI, machine learning, and IoT, hyper-scale data centers have seen huge demand lately. Big tech giants like Facebook, Amazon, and Google are investing heavily in the construction of hyper-scale data center facilities.
These data center infrastructures need high capability and modernized infrastructure for supporting critical IT equipment and offer enhanced data protection. High-density networking servers in these data centers demand security management, power and cooling combinations for enabling energy-efficient operation.
Increasing government initiatives regarding the safety of customer data are encouraging businesses to establish their own data center facilities in the Asia Pacific. For instance, China’s Cybersecurity Law states data localization requirements on Critical Information Infrastructure Operators (CIIOs). The Law guides network operators to analyze, store and process customer data within the country. With this, it is estimated that the Asia Pacific data center infrastructure market may speculate sturdy progress over the forecast period. Multiple initiatives such as Smart Cities, Made in China, and Digital India, may also boost the adoption of IoT and cloud computing in the region.
Mentioned below are some of the key trends driving data center infrastructure market expansion:
1) Growing demand for hyperscale data centers
Expansion of hyperscale data centers owing to the usage of cloud computing, data analytics, and emerging technologies like IoT, AI, and machine learning is fueling industry outlook. Hyperscale data centers need high capability and modernized infrastructure to improve protection and support the critical IT equipment.
High-density networking servers in hyperscale data centers demand cooling, security management and power solutions in order to facilitate energy-efficient operation. Major cloud service providers like Facebook Inc., Amazon, and Google LLC are making huge investments in the construction of hyperscale data center facilities.
2) Increasing adoption of data center services
The service segment is anticipated to account for a substantial market share on account of surging demand for scalable infrastructure for supporting high-end applications. Data center services such as monitoring, maintenance, consulting, and design help operators to better manage data centers and their equipment.
Enterprises often need professional, skilled and managed service providers for the management of systems and optimization of data center infrastructure to obtain efficiencies. Professional service providers having the required technical knowledge and expertise in IT management and data center operations allow streamlining of business processes. These services help to significantly decrease the total cost of operations and maintenance of IT equipment.
3) Robust usage of cooling solutions
There is a proliferation of AI, driverless cars, and robots which is encouraging data center service providers to move strategic IT assets nearer to the network edge. These edge data centers are in turn rapidly shifting towards liquid cooling solutions to run real applications having full-featured hardware and lessen energy consumption for the high-density applications.
Key companies operating in the data center infrastructure market are Panduit Corporation, Hewlett Packard Enterprise Company, Black Box Corporation, Vertiv Group Co., ClimateWorx International, Eaton Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., ABB Ltd, Schneider Electric SE, Degree Controls, Inc., and Dell, Inc.