Italy Data Center Market Size
Italy Data Center Market Analysis
The Italy Data Center Market size is estimated at 0.55 thousand MW in 2025, and is expected to reach 1.39 thousand MW by 2030, growing at a CAGR of 20.24%. Further, the market is expected to generate colocation revenue of USD 998 Million in 2025 and is projected to reach USD 2,652.5 Million by 2030, growing at a CAGR of 21.59% during the forecast period (2025-2030).
The Italian data center market is experiencing significant transformation through industry consolidation and new market entrants, reshaping the competitive landscape. Major data center infrastructure providers are actively expanding their presence through strategic partnerships and greenfield developments. A notable example is the joint venture between Compass Data Centers and Hines, which plans to construct a substantial 48 MW data center facility. Stack Infrastructure has also announced plans for mega-sized hyperscale data center facilities, demonstrating the market's shift toward larger, more sophisticated installations. These developments reflect the industry's response to growing enterprise demands for advanced computing capabilities and enhanced operational efficiency.
The market is witnessing a clear shift in data center infrastructure preferences, with operators increasingly focusing on higher-tier facilities to meet evolving business requirements. Tier 4 facilities are emerging as the preferred choice for enterprises requiring maximum reliability and uptime. This trend is particularly evident in the financial services and digital content sectors, where operational continuity is crucial. The gaming industry's projected growth from EUR 90 million in 2021 to EUR 357 million by 2026 exemplifies the increasing demand for robust data center infrastructure to support digital entertainment services.
Infrastructure development is extending beyond traditional urban centers, with providers actively addressing the rural-urban digital divide. In January 2023, WindTre and Iliad launched their joint venture, Zefiro Net, specifically focused on infrastructure sharing in rural areas. This initiative represents a significant step toward ensuring comprehensive digital coverage across Italy. Simultaneously, established providers like Aruba are expanding their footprint, with plans to develop a new 30 MW facility in Rome, demonstrating continued investment in key metropolitan areas.
The market is being shaped by the rapid evolution of smart city initiatives and increasing digitalization across various sectors. Cities like Milan, Florence, and Bologna are implementing advanced digital infrastructure to support smart city applications, from traffic management to public services. The significant increase in Video-on-Demand (VOD) subscribers, which reached 15 million users in 2021, illustrates the growing demand for digital content delivery infrastructure. This digital transformation is driving data center operators to enhance their capabilities in edge data center computing and local content delivery to support these emerging use cases while maintaining optimal performance levels.
Italy Data Center Market Trends
Increment in the subscriber penetration rate is boosting the market demand
- Italy has increasing smartphone usage in the country, with a smartphone adoption rate expected to increase from 77% in 2021 to 81% in 2025. Despite a decreasing population, the expected increment in the subscriber penetration rate from 89% in 2021 to 90% by 2025 reflects a promising scenario for adoption.
- However, the decreasing population with a negative growth rate and higher average age play a crucial role in determining device usage in the country. The data from ISTAT highlighted the average age of the population in 2021 to be 45.9 years, compared to 44.9 years in 2017.
- Italy has a unique demographical scenario regarding digitalization and adopting the latest telecommunications technology. The country was among the initial ones to deploy a 3G network and has been ahead of the international timeline. The government legislation on the 'Right To Repair' and 'Planned Obsolescence Law' would allow users to repair their phones more, which may help them avoid expenditure on new smartphones. This may further hamper the growth of the number of new smartphones in the market. This may further lead to a decrease in data generation due to lesser data-generating points in Italy, affecting the demand for data centers in the region.
Investments in the country's FTTH broadband service is boosting the market demand
- Italy has been a significant consumer of broadband services, with companies offering broadband and ultra-broadband services. The overall broadband connections in the country increased from about 62.4% in 2011 to about 93.5% by the end of 2021. The pandemic influenced the restructuring of the services, creating significant demand to utilize the infrastructure for broadband services in Italy. This was also evident in the increase in data traffic by about 150%, from 17,700 to more than 44,200 PB from 2017 to 2021, which further highlights the future growth prospects.
- Fiber connectivity in the region increased from 1.3% in 2011 to 64.4% in 2018, including FTTH and FTTC services. The data from AGCOM highlighted the monthly data consumption per broadband line from 96.6 GB in 2017 to about 210 GB in 2019. Broadband access through residential and business ultra-broadband services by the end of 2021 reached 18.7 million units, accounting for about 31.7 lines for every 100 inhabitants.
- The investments in the country's FTTH broadband services would shape the market during the forecast period. With the significant investments in the past, the infrastructure was greatly benefitted, which would be carried forward by the operators accordingly. In April 2022, prominent players like Telecom Italia's FiberCop and TLC Telecomunicazioni signed an agreement to develop FTTH access jointly. The deep penetration of broadband services availed by the Italian population may help data center facilities to deliver data faster and leverage the network to interact with internet exchanges and telecommunication operators, as required.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Surge in 5G smartphones is boosting the market growth
- Increase in fiber deployment and significant number of internet exchanges is driving the market demand
- Increase in network infrastructure in rural and urban area of the region drives the market demand
Segment Analysis: By Data Center Size
Mega Segment in Italy Data Center Market
The Mega data center segment dominates the Italian data center market, commanding approximately 46% market share in 2024. Currently, there are three mega data center facilities operating in the country, all strategically located in the Greater Milan region. Leading players in this segment include Data 4 with an IT load capacity of 67 MW, while Aruba SpA and Vantage Data Centers maintain facilities with capacities of 60 MW and 64 MW, respectively. The segment's prominence is further reinforced by its advanced infrastructure capabilities and ability to handle large-scale operations, making it particularly attractive for enterprises requiring substantial computing power and storage capabilities.
Massive Segment in Italy Data Center Market
The Massive data center segment is experiencing remarkable growth in the Italian market, projected to expand at approximately 36% during the forecast period 2024-2029. This exceptional growth is primarily driven by local governments offering attractive incentives and benefits on tax, electricity, and land costs. The Greater Milan region remains the preferred hotspot, hosting over 76% of massive data centers, followed by Rome with about 24% market share. Stack Infrastructure leads this segment with its Tier 3 massive facility offering 22 MW capacity in the Greater Milan region, while IT Net follows with a combined capacity of 20 MW across its two Tier 4 facilities in the Greater Milan and Rome regions.
Remaining Segments in Data Center Size Market
The market also encompasses Large, Medium, and Small data center segments, each serving distinct business requirements and operational scales. The Large segment caters to enterprises requiring substantial but not massive computing power, with facilities predominantly concentrated in the Greater Milan region. The Medium segment serves mid-sized businesses and organizations, offering balanced capabilities and cost-effectiveness. The Small segment, while present in the market, shows minimal activity due to the increasing preference for larger, more sophisticated data center facilities. These segments collectively contribute to the market's diversity, offering various options to meet different organizational needs and operational requirements.
Segment Analysis: By Tier Type
Tier 4 Segment in Italy Data Center Market
Tier 4 data centers dominate the Italian data center market, commanding approximately 51% market share in 2024, driven by the increasing demand from large enterprises requiring maximum uptime and reliability. These facilities offer the highest level of redundancy and fault tolerance, with features like fully redundant power and cooling systems, multiple independent distribution paths, and an expected downtime of just 26.3 minutes annually. The segment's prominence is further strengthened by the growing adoption among competitive businesses that require instant operation recovery and cannot afford system failures. Major operators are actively expanding their Tier 4 certified facilities, particularly in the Greater Milan region, to cater to the increasing demand from sectors like banking, cloud services, and content delivery networks.
Tier 3 Segment in Italy Data Center Market
The Tier 3 segment is experiencing the fastest growth trajectory in the Italian data center market, with an expected growth rate of approximately 16% during 2024-2029. This robust growth is primarily driven by medium and large enterprises seeking a balance between high availability and cost-effectiveness. These facilities are particularly attractive to growing enterprises as they provide numerous features at an affordable price point, including 72-hour power outage protection and concurrent maintainability. The segment's expansion is further supported by the rising number of startups and technology companies in Italy that require reliable infrastructure without the premium costs associated with Tier 4 facilities. The development of new Tier 3 facilities is concentrated in emerging technology hubs across Italy, catering to the growing demand from cloud service providers and digital businesses.
Remaining Segments in Tier Type Market
The Tier 1 and Tier 2 segments represent the basic level of data center infrastructure in the Italian market. These facilities, while offering fundamental data center services, are primarily utilized by small businesses with minimal uptime requirements and basic computational needs. However, their market impact is diminishing as businesses increasingly prioritize higher reliability and uptime guarantees. The limited redundancy and higher annual downtime associated with these tiers have led to reduced demand, with most new developments focusing on higher tier certifications. These segments mainly serve as backup facilities or for non-critical applications where occasional downtime is acceptable.
Segment Analysis: By Absorption
Utilized Segment in Italy Data Center Market
The Utilized segment dominates the Italian data center market, commanding approximately 84% market share in 2024. This significant market position is driven by the increasing adoption of cloud services, digital transformation initiatives, and the growing demand from key sectors like BFSI, manufacturing, and media & entertainment. The segment's strength is further reinforced by the presence of major data center operators like Aruba SpA, Data4, and Vantage Data Centers, who maintain high utilization rates across their facilities. The segment's robust performance is supported by the rising demand for colocation services, particularly in the Greater Milan region, which serves as the primary data center hub in Italy. Additionally, the increasing deployment of 5G technology and the evolution of smart cities have contributed to higher utilization rates across data center facilities.
Non-Utilized Segment in Italy Data Center Market
The Non-Utilized segment in the Italian data center market is projected to demonstrate significant growth potential between 2024 and 2029, with an expected growth rate of approximately 13%. This growth trajectory is primarily attributed to the ongoing expansion of data center facilities and the strategic approach of operators in maintaining optimal capacity reserves for future demand. The segment's evolution is closely tied to the industry's practice of phased capacity deployment, where operators gradually bring new capacity online to match market demand. This approach helps maintain operational efficiency while ensuring readiness for future growth. The segment is particularly relevant in emerging data center locations outside the Greater Milan region, where operators are establishing new facilities with planned capacity expansions. The growth is further supported by the increasing number of new market entrants and ongoing construction projects, including significant developments by companies like Compass and Hines.
Italy Data Center Industry Overview
Top Companies in Italy Data Center Market
The Italian data center market is characterized by continuous innovation in infrastructure development and service offerings, with providers focusing on expanding their footprint through new facility construction and upgrades. Companies are increasingly adopting sustainable practices and energy-efficient technologies while enhancing their interconnection capabilities through partnerships with cloud providers and telecom operators. Strategic expansion initiatives are primarily concentrated in the Greater Milan region, though some providers are exploring opportunities in emerging hubs like Rome. Operational agility is demonstrated through the development of scalable facilities that can accommodate varying power densities and customer requirements. Market leaders are differentiating themselves through advanced cooling designs, enhanced security measures, and comprehensive managed data center services portfolios, while also pursuing certifications to strengthen their market positions.
Market Dominated by Mix of Global-Local Players
The Italian data center market exhibits a balanced mix of international conglomerates and domestic specialists, with global players leveraging their technological expertise and domestic operators capitalizing on their local market knowledge and established relationships. The market structure is moderately consolidated, with the top three players accounting for a significant portion of the market share, while still maintaining healthy competition among various tier levels of providers. The competitive dynamics are shaped by strategic partnerships between local and international players, enabling comprehensive service delivery and market penetration.
The market is witnessing increased consolidation through strategic acquisitions and joint ventures, particularly as global players seek to establish or strengthen their presence in the Italian market. Notable transactions include acquisitions of local operators by international investment firms and infrastructure funds, reflecting the market's attractiveness for long-term investments. This consolidation trend is reshaping the competitive landscape while driving improvements in service quality and operational efficiency through knowledge transfer and resource optimization.
Innovation and Sustainability Drive Future Success
Success in the Italian data center market increasingly depends on providers' ability to deliver innovative data center solutions while maintaining operational excellence and environmental sustainability. Incumbent providers can strengthen their market position by expanding their service portfolios to include advanced cloud connectivity options, edge computing capabilities, and specialized solutions for key industry verticals such as manufacturing, banking, and media. Market leaders must also focus on developing strong relationships with local authorities and utility providers while maintaining high service quality standards and operational transparency.
For contenders seeking to gain market share, differentiation through specialized services and strategic location selection will be crucial. New entrants must consider factors such as power availability, connectivity options, and proximity to business centers while developing their market entry strategies. The regulatory environment, particularly concerning data protection and environmental standards, will continue to influence market dynamics, while the growing adoption of cloud services and digital transformation initiatives across industries will create new opportunities for both established players and new entrants. Success will ultimately depend on providers' ability to balance technical innovation with operational efficiency while meeting evolving customer requirements. Effective data center management and efficient data center operations will be key to achieving these objectives.
Italy Data Center Market Leaders
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Aruba SpA
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Data4
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Equinix, Inc.
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Irideos SpA
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Vantage Data Centers LLC
- *Disclaimer: Major Players sorted in no particular order
Italy Data Center Market News
- December 2022: Aruba launched two new data centers on its Bergamo campus in Lombardy. The company reported that its IT3 technology campus in Ponte San Pietro outside Milan is home to two ‘future-proof’ data centers. According to the company, the new facilities will cost EUR 500 million (USD 521.9 million).
- July 2022: Stack Infrastructure launched its third data center facility in Italy. The company announced the opening of its third data center in Siziano. The new MIL02 facility spans around 9,000 sq. m (97,000 sq. ft) with a power of 10 MW.
- July 2022: Aruba plans to build a 30 MW data center campus in Rome in 2023. According to the company, its IT4 hyper cloud data center has a surface area of 74,000 square meter in the East of Rome. It has five data centers of 6 MW each.
Free With This Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, ITALY, 2018 - 2030
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), ITALY, 2018 - 2030
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, ITALY, 2018 - 2030
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, ITALY, 2018 - 2030
- Figure 5:
- RACK SPACE UTILIZATION, %, ITALY, 2018 - 2030
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, ITALY, 2018 - 2030
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, ITALY, 2018 - 2030
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, ITALY, 2018 - 2030
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, ITALY, 2018 - 2030
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, ITALY, 2018 - 2030
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, ITALY, 2018 - 2030
- Figure 12:
- VOLUME OF HOTSPOT, MW, ITALY, 2018 - 2030
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, ITALY, 2018 - 2030
- Figure 14:
- VOLUME SIZE OF GREATER MILAN, MW, ITALY, 2018 - 2030
- Figure 15:
- VOLUME SHARE OF GREATER MILAN, MW, HOTSPOT, %, ITALY, 2018 - 2030
- Figure 16:
- VOLUME SIZE OF REST OF ITALY, MW, ITALY, 2018 - 2030
- Figure 17:
- VOLUME SHARE OF REST OF ITALY, MW, HOTSPOT, %, ITALY, 2018 - 2030
- Figure 18:
- VOLUME OF DATA CENTER SIZE, MW, ITALY, 2018 - 2030
- Figure 19:
- VOLUME SHARE OF DATA CENTER SIZE, %, ITALY, 2018 - 2030
- Figure 20:
- VOLUME SIZE OF LARGE, MW, ITALY, 2018 - 2030
- Figure 21:
- VOLUME SIZE OF MASSIVE, MW, ITALY, 2018 - 2030
- Figure 22:
- VOLUME SIZE OF MEDIUM, MW, ITALY, 2018 - 2030
- Figure 23:
- VOLUME SIZE OF MEGA, MW, ITALY, 2018 - 2030
- Figure 24:
- VOLUME SIZE OF SMALL, MW, ITALY, 2018 - 2030
- Figure 25:
- VOLUME OF TIER TYPE, MW, ITALY, 2018 - 2030
- Figure 26:
- VOLUME SHARE OF TIER TYPE, %, ITALY, 2018 - 2030
- Figure 27:
- VOLUME SIZE OF TIER 1 AND 2, MW, ITALY, 2018 - 2030
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, ITALY, 2018 - 2030
- Figure 29:
- VOLUME SIZE OF TIER 4, MW, ITALY, 2018 - 2030
- Figure 30:
- VOLUME OF ABSORPTION, MW, ITALY, 2018 - 2030
- Figure 31:
- VOLUME SHARE OF ABSORPTION, %, ITALY, 2018 - 2030
- Figure 32:
- VOLUME SIZE OF NON-UTILIZED, MW, ITALY, 2018 - 2030
- Figure 33:
- VOLUME OF COLOCATION TYPE, MW, ITALY, 2018 - 2030
- Figure 34:
- VOLUME SHARE OF COLOCATION TYPE, %, ITALY, 2018 - 2030
- Figure 35:
- VOLUME SIZE OF HYPERSCALE, MW, ITALY, 2018 - 2030
- Figure 36:
- VOLUME SIZE OF RETAIL, MW, ITALY, 2018 - 2030
- Figure 37:
- VOLUME SIZE OF WHOLESALE, MW, ITALY, 2018 - 2030
- Figure 38:
- VOLUME OF END USER, MW, ITALY, 2018 - 2030
- Figure 39:
- VOLUME SHARE OF END USER, %, ITALY, 2018 - 2030
- Figure 40:
- VOLUME SIZE OF BFSI, MW, ITALY, 2018 - 2030
- Figure 41:
- VOLUME SIZE OF CLOUD, MW, ITALY, 2018 - 2030
- Figure 42:
- VOLUME SIZE OF E-COMMERCE, MW, ITALY, 2018 - 2030
- Figure 43:
- VOLUME SIZE OF GOVERNMENT, MW, ITALY, 2018 - 2030
- Figure 44:
- VOLUME SIZE OF MANUFACTURING, MW, ITALY, 2018 - 2030
- Figure 45:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, ITALY, 2018 - 2030
- Figure 46:
- VOLUME SIZE OF TELECOM, MW, ITALY, 2018 - 2030
- Figure 47:
- VOLUME SIZE OF OTHER END USER, MW, ITALY, 2018 - 2030
- Figure 48:
- VOLUME SHARE OF MAJOR PLAYERS, %, ITALY
Italy Data Center Industry Segmentation
Greater Milan are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.Hotspot | Greater Milan | |||
Rest of Italy | ||||
Data Center Size | Large | |||
Massive | ||||
Medium | ||||
Mega | ||||
Small | ||||
Tier Type | Tier 1 and 2 | |||
Tier 3 | ||||
Tier 4 | ||||
Absorption | Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | ||
Retail | ||||
Wholesale | ||||
By End User | BFSI | |||
Cloud | ||||
E-Commerce | ||||
Government | ||||
Manufacturing | ||||
Media & Entertainment | ||||
Telecom | ||||
Other End User |
Greater Milan |
Rest of Italy |
Large |
Massive |
Medium |
Mega |
Small |
Tier 1 and 2 |
Tier 3 |
Tier 4 |
Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | |
Retail | |||
Wholesale | |||
By End User | BFSI | ||
Cloud | |||
E-Commerce | |||
Government | |||
Manufacturing | |||
Media & Entertainment | |||
Telecom | |||
Other End User |
Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword | Definition |
---|---|
Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms