The global data center market is projected to generate $343.6 billion revenue in 2030, advancing at a CAGR of 5.1% during 2021–2030. This can be attributed to the rising adoption of hyperscale data management centers and the increasing awareness of the cloud services provided by them.
The COVID-19 pandemic has contributed to a surge in data center investments all around the world. Government-imposed restrictions resulted in an increase in remote working and e-commerce activities, which led to higher data generation at the local level. To reduce latency, several edge data management centers were installed at various places. The use of cloud-based services by government organizations, as well as contactless payments and online learning platforms by the common folk, helped the market flourish during the pandemic.
Growing IT and telecom industry is key driver for third-party data storage demand
The IT and telecom industry is expected to grow with a CAGR of 5.6% in the market during the forecast period. This can be ascribed to the quick adoption of advanced technologies, such as cloud computing, artificial intelligence (AI), and the internet of things (IoT), which is why huge amounts of data is being generated. Mobile phones, personal records, networking equipment, server logs, billing activities, and social media are all sources of internet data. Companies in the IT and telecom sector rent data management center facilities to store this massive volume of information. These solutions enable IT and telecom organizations to securely handle and store massive volumes of data, while also allowing them to scale their storage capacity as needed. As a result, the industry generates more than half the data center market revenue.
With over 40% market share in 2021, North America was the greatest contributor to the global data center industry. The U.S. has around 2,600 such establishments, with northern California serving as the hub for many IT businesses (Google, Facebook, Uber, Twitter, Yelp). Additionally, the IT infrastructure of North America is the most-advanced in the world, which creates the need for migration to the next generation of such centers.
Launch of advanced products is most-effective strategic measure taken by market players
Players in the market are extensively involved in the launching of advanced solutions to gain a significant position. For instance, In September 2021, Huawei Technologies launched Indirect Evaporative Cooling solution to upgrade air handling units (AHU) to environment handling units (EHU), to reduce the power usage effectiveness (PUE) and carbon emissions of data centers.
Similarly, in March 2021, Vertiv Group, in collaboration with Green Revolution Cooling, launched Vertiv’s first liquid immersion cooling solution, to cater to the needs of hyperscale data centers, as it can support a load of up to100 kW per rack.
Major players operating in the global data center market are Alphabet Inc., IBM Corporation, Amazon.Com Inc., Equinix Inc., Hewlett Packard Enterprise, Microsoft Corporation, NTT Communications Corporation, and Oracle Corporation.