Atlanta Data Center Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 21.83 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Atlanta Data Center Market Analysis
The Atlanta Data Center market is a volume of 357.13 MW in the previous year and is expected to reach a CAGR of 21.83 % during the forecast period to become a volume of 1348.54 MW by the next six years. The main drivers anticipated to drive the market expansion are the increasing demand for energy-efficient data centers, considerable investment by colocation service and managed service providers, and expanding hyperscale data center building. Additionally, the development of big data, cloud computing, and the Internet of Things (IoT) has made it possible for businesses to invest in new data centers to preserve business continuity. Additionally, industrial development is expected to prosper due to the rising need for security, operational efficiency, improved mobility, and bandwidth. Software-based data centers boost industry growth by providing a higher level of automation.
- Artificial intelligence (AI) with machine learning (ML) necessitates the development of brand-new data center infrastructure more than any other application. Artificial intelligence (AI) and machine learning (ML) may require three times the power density of traditional data processing, necessitating a revolution in data center architecture. This is also dependent on sophisticated cooling systems to support the larger output. The intense nature of AI and ML computations may also result in a significant dispersion of computational, memory, and storage resources among many processors in a computational cluster.
- A data center must adhere to the following specification as a Tier III facility. The facility should offer N+1 (the amount required for operation plus a backup) fault tolerance. Also, the Tier III facility providers can undergo routine maintenance without a hiccup in the overall operations. However, unplanned maintenance and emergencies may cause problems affecting the system. These problems could affect customer-facing operations.
- These data center facilities provide a 99.982% uptime. The companies using these Tier III facilities are often growing companies or businesses that are considerably larger than the average SMBs (Small to Medium Businesses). These Tier III facilities also offer most of the features of a Tier IV infrastructure facility without some elite protection. For instance, enterprises can leverage the advantage of dual power sources and redundant cooling as the network streams are fully backed up.
- The BFSI industry has been one of the most influenced by enterprises' digital transformation, allowing for more cost-effective revenues. The rising Paris adoption of mobile phones and high-speed internet has pushed individuals to choose digital banking, which has also integrated robust CRM and cloud technologies to store and analyze data, which is projected to boost market growth.The rapid expansion of electronic banking, digital storage, and virtualization in the BFSI sector will likely drive demand for cost-effective and energy-efficient data center solutions. It enables the consistent and reliable availability of IT and digital banking services in a highly protected environment. It can also connect and encrypt all device communications while controlling user access to protect against errors and bad intent.
- On the flip side, the country's commercial real estate has been constantly evolving and changing due to the continued integration of technology at all levels of the industry and across all property types. As more companies have been transitioning toward cloud computing with major vendors expanding their capacities has been influencing land prices; for instance, Amazon Web Services (AWS) currently has cloud infrastructure in 22 regions and has predicted that new data centers may be needed in hundreds of regions to keep up with demand.
- According to North American Data Centers Report, the strong leasing activity during the second quarter of COVID-19 stemmed from hyperscale companies, as many of these tenants pulled forward their requirements due to the distributed workforce and the work-from-home lifestyle. In addition to remote work, online gaming, social media, video streaming, and e-commerce drove leasing activity during the COVID-19. Colocation service providers and cloud were benefactors of rising SaaS and network customer demand from the pandemic response necessitating remote working and educating. In addition, these services are particularly recession-resistant, and demand for services has been increasing, translating to data center construction projects remaining in progress to ensure they could meet demand.
Atlanta Data Center Market Trends
Mega Size Data Center are Expected to Hold Significant Share
- Mega or hyperscale data centers are designed to handle large amounts of data and support various applications. These applications include IT and telecom services, government services, healthcare, e-commerce, media and entertainment, and more. The scalability of mega data centers allows businesses and organizations to quickly and efficiently add capacity to meet their growing needs. These data centers also play an important role in cloud computing, enabling businesses to store and access their data anywhere easily. Overall, mega data centers are a critical component in the digital infrastructure that supports the modern economy, providing the capacity and reliability that businesses and consumers need to stay connected and productive.
- Mega data centers are large-scale industrial activities hosting computer systems using vast electricity. As the size and density of these data centers have increased, industry think tanks have recommended guidelines for their size and density. The Telecommunications Infrastructure Standard for Data Centres, developed by the Telecommunications Industry Association, specifies the minimum requirements for data center and computer room telecommunications infrastructure, including single-tenant enterprise data centers and multi-tenant Internet hosting data centers. Furthermore, the Uptime Institute provides a data center Tier Classification Standard, which defines four tiers ranging from basic capacity to fault-tolerant and covers redundancy, power, and cooling criteria.
- There are several mega-scale data centers located in Atlanta. One such data center is operated by QTS Realty Trust, which has two regional campuses spanning more than 100 acres, including a new 495000 gross square foot mega data center. QTS' data center campuses in Atlanta offer more than 1033 Jefferson Street NW site in Central Atlanta and 495,000 square feet of raised floor space with 72 MW of power capacity at their first phase. Other data centers are operated by different companies, such as Digital Realty and Equinix, both of which have a significant presence in the Atlanta metro area.
- Government agency servers, data center facilities, and networks in the United States must adhere to strict regulations. The two organizations that publish data center standards in the US are the Telecommunications Industry Association (TIA) and the Uptime Institute. The TIA's Telecommunications Infrastructure Standard for Data Centers sets the minimum requirements for telecommunications infrastructure in data centers, including those for enterprise or multi-tenant Internet-hosting data centers. The Uptime Institute's Data Center Tier Classification Standard defines four tiers of data centers, with Tier IV being the highest in fault tolerance and Tier I being the most basic capacity with a UPS (uninterruptible power source). Data centers' energy efficiency and water usage are regulated by regulatory and voluntary schemes, such as those set by the US Energy Act of 2020.
- According to US Census Bureau, a rise in the sales value of smartphones sold in the United States of USD 1.7 billion in 2022, for a total of USD 74.7 billion in sales in 2022. data center use for smartphones. Data centers are a critical part of the infrastructure that enables smartphones and other mobile devices. Data centers provide the storage, processing, and networking capabilities that enable the transmission and processing of the vast amounts of data generated by mobile devices. Such a huge rise in the sales of smartphones would drive the market.
Retail Colocation Center is Expected to Hold Significant Share
- Retail colocation is where the customer takes the space for lease within the data center, such as rack space within the caged-off area. Owing to various advantages, such as economics and ease of maintenance, smaller enterprises generally prefer retail colocation. Owning a data center is not a viable option due to the cost of land leasing. Also, maintenance of a colocation center is often outside budget constraints.
- The retail colocation market is likely driven by the high demand for colocation services from developing countries. Compared to wholesale colocation services, retail colocation services are highly suitable for enterprises requiring lesser computing power at one site or across multiple locations to benefit local and global customers. The retail colocation market is anticipated to grow significantly during the forecast period. About 100 kW of energy is typically needed to power retail data centers, while wholesale customers usually need more than 100 kW, owing to their business scale. Many facilities, such as security provision, customer support, cooling facilities, etc., are provided by colocation suppliers.
- Typically, retail customers have many partners to maintain connectivity. Therefore, a diverse set of carriers with good speeds are necessary. Additionally, as retail data center providers work with more clients than wholesale providers, their facilities usually offer a multitude of networks and services. Retail providers offer various services, such as smart hands and remote hands, for technical assistance, managed services, and network monitoring. Therefore, resolving issues can be as simple as raising a service ticket. Such services help exploit various other benefits, such as locating data centers away from disaster-prone areas that can be remotely operated. Due to this remote hand's technology, tax benefits in different states can be used to avail certain tax benefits.
- Many new technologies, including 100% green data centers, have been deployed in retail colocation. Aruba SPA has built a 100% green data center facility. This facility uses underground flowing rivers to turn turbines, solar panels, and underground water pumped to the surface for cooling purposes. The need for interconnectivity is also increasing, increasing the demand for retail colocation. It has been identified that the leading providers of colocation services offer as many as 230,000 interconnection possibilities. Many SME industries constitute a large part of the economy. Such SMEs can only afford part of the space for utility, as the IT staff and operations are included in this scale of operation.
- According to SurfShark, in 2022, the United States E-infrastructure index amounted to 0.1944. By contrast, the Internet affordability index was only 0.0326. Since retail colocation facilities have become old and outdated, their customers are choosing to leave these facilities to find other, newer, multi-tenant data center providers. When retail colocation facilities lose customers, this presents itself in their customer churn metrics. Indeed, public data center companies report churn metrics quarterly, with higher churn implying that more customers are leaving.
Atlanta Data Center Industry Overview
The Atlanta Data Center market is moderately consolidated with major players like Equinix, Switch, Cyxtera Technologies, etc. The companies continuously invest in strategic partnerships and product developments to gain substantial market share. Some of the recent developments in the market are:
In May 2023, DataBank started constructing a new data center in Atlanta, Georgia and finished an extension project in San Diego, California. The business announced the groundbreaking of its ATL4 data center in Atlanta. The colocation facility at 200 Selig Drive will have 200,000 square feet (18,580 sqm) of raised floor space and 4MW of capacity, extendable to 40MW. DataBank paid USD10.9 million for the 18-acre land in May 2022. Lathem Time Corporation, clocks, time cards, and personnel monitoring systems manufacturer, originally owned the website.
In January 2023, Edged Energy, a data center company, reportedly aims to build a data center in Atlanta's Fulton County. A building permit was filed in Atlanta, Georgia, for a nearly 210,000-square-foot (19,500 sq ft), two-story data center at Tilford Yard, a former railway depot. The project is referred to as 'Edged' in the plans. Edged Energy is a newcomer that claims to provide "net-zero digital infrastructure" for the Edge. The company intends to build low-power waterless buildings with a PUE of 1.15 that will rely on local renewable energy, particularly rooftop and ground-mounted PV arrays.
Atlanta Data Center Market Leaders
Equinix Inc.
Switch, Inc.
Cyxtera Technologies, Inc.
Flexential Corp
Sungard Availability Services
*Disclaimer: Major Players sorted in no particular order
Atlanta Data Center Market News
- December 2022: Equinix, Inc., the world's digital infrastructure firm, announced the first pledge by a colocation data center operator to reduce overall power consumption by increasing operating temperature ranges within its data centers. Equinix will begin defining a multi-year global roadmap for thermal operations within its data centers immediately, aiming for much more efficient cooling and lower carbon footprints while maintaining the premium operating environment for which Equinix is recognized. This program is expected to help thousands of Equinix customers to reduce the Scope 3 carbon emissions connected with their data center operations over time as supply chain sustainability becomes an increasingly essential aspect of today's enterprises' total environmental activities.
- June 2022: CoreSite, a hybrid IT solutions provider and part of American Tower Corporation, announced its entry into the Atlanta and Orlando markets with the integration of three American Tower assets into CoreSite's data center ecosystem: Atlanta AT1, Atlanta AT2, and Orlando OR1. All three data centers, which total more than 250,000 square feet, now have access to the Open Cloud Exchange, CoreSite's software-defined networking platform that delivers fully managed, direct, and secure connectivity to all major cloud service providers.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
4.1 Smartphone Users
4.2 Data Traffic per Smartphone
4.3 Mobile Data Speed
4.4 Broadband Data Speed
4.5 Regulatory Framework
4.6 Value Chain Analysis
5. MARKET OUTLOOK
5.1 IT Load Capacity
5.2 Raised Floor Space
5.3 Number of Racks
6. MARKET SEGMENTATION
6.1 DC Size
6.1.1 Small
6.1.2 Medium
6.1.3 Large
6.1.4 Massive
6.1.5 Mega
6.2 Tier Type
6.2.1 Tier 1 & 2
6.2.2 Tier 3
6.2.3 Tier 4
6.3 Absorption
6.3.1 Utilized
6.3.1.1 Colocation Type
6.3.1.1.1 Retail
6.3.1.1.2 Wholesale
6.3.1.1.3 Hyperscale
6.3.1.2 End User
6.3.1.2.1 Cloud & IT
6.3.1.2.2 Telecom
6.3.1.2.3 Media & Entertainment
6.3.1.2.4 Government
6.3.1.2.5 BFSI
6.3.1.2.6 Manufacturing
6.3.1.2.7 E-Commerce
6.3.1.2.8 Other End User
6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
7.1 Company Profiles
7.1.1 Equinix Inc.
7.1.2 Switch, Inc.
7.1.3 Cyxtera Technologies, Inc.
7.1.4 Flexential Corp
7.1.5 Sungard Availability Services
7.1.6 DC Blox Inc.
7.1.7 H5 Data centers
7.1.8 Hivelocity Inc
7.1.9 Colocrossing
7.1.10 Stack Infrastructure
7.1.11 Cogent Communication
7.1.12 EdgeConneX, Inc.
- *List Not Exhaustive
7.2 Market share analysis (In terms of MW)
7.3 List of Companies
Atlanta Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The Atlanta Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), Tier Type (Tier 1&2, Tier 3, Tier 4), Absorption (Utilized (Colocation Type (Retail, Wholesale, Hyperscale), End User ( Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)), Non-Utilized). The market sizes and forecasts are provided in terms of volume (MW) for all the above segments.
| DC Size | |
| Small | |
| Medium | |
| Large | |
| Massive | |
| Mega |
| Tier Type | |
| Tier 1 & 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| |||||||||||||||||
| Non-Utilized |
Frequently Asked Questions
What is the current Atlanta Data Center Market size?
The Atlanta Data Center Market is projected to register a CAGR of 21.83% during the forecast period (2024-2029)
Who are the key players in Atlanta Data Center Market?
Equinix Inc., Switch, Inc., Cyxtera Technologies, Inc., Flexential Corp and Sungard Availability Services are the major companies operating in the Atlanta Data Center Market.
What years does this Atlanta Data Center Market cover?
The report covers the Atlanta Data Center Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Atlanta Data Center Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Atlanta Data Center Market Industry Report
Statistics for the 2024 Atlanta Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Atlanta Data Center analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
