Paris Data Center Market Size

Paris Data Center Market Analysis

The Paris Data Center market was valued at 725.2 MW in the previous year, and it is expected to witness a CAGR of 4.16% during the forecast period to become 1004.2 MW. 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.
• Paris has various artificial intelligence applications, including healthcare, fashion, and sciences. For example, the Radiology Department in Groupe Hospitaller Cochin Broca Hôtel-Dieu - Université Paris Descartes uses artificial intelligence in thoracic imaging and lung cancer applications, such as detecting and segmenting pulmonary nodules. Moreover, at Paris Fashion Week, artificial intelligence machines were used to picture conceptual apparel in a showroom. Such a wide range of AI in various industries would drive the market's demand.
• Moreover, telcos will require more servers and low-latency connectivity alternatives as more individuals spend time online. The size and connectivity of hyperscale data centers will be required to handle rising demand. In 2023, services will continue to be delivered as a single service or set of services using various resources, including networks, devices, private and public cloud services, and cloud deployment and operation platforms. Public clouds have enormous processing capacity, whereas private clouds give more security and control.
• For instance, in June 2022, Oracle announced the launch of a second cloud region in France to provide public cloud services to businesses looking to modernize their operations. In addition to the Oracle Cloud Marseille area, the new La Courneuve, Paris region will provide Oracle's European customers and partners with access to a broad spectrum of cloud services with built-in security, disaster recovery, and industry-leading price performance. Oracle's one-of-a-kind dual-region cloud architecture allows French customers to deploy resilient applications in several geographical regions.
• On the flip side, development centers have conducted extensive research on energy efficiency in data centers, focusing on optimal QoS, efficient utilization of resources, and operation cost reduction. They aim to minimize brown energy utilization by proposing a load-balancing approach utilizing the available green energy. Load balancing is based on available renewable energy and has been installed in multiple data centers. A workload and energy management scheme was introduced to decrease the operational cost of the network and energy costs. Combined cooling, heating, and power (CCHP) systems also can reduce carbon emissions and air pollution and significantly increase resource energy efficiency.
• Moreover, coronavirus had a minimal influence over the Paris data center market as it is an essential infrastructure. Data centers remained open during the coronavirus-related shutdowns as the government deemed the operation and maintenance of data centers as a critical service. However, pricing came under pressure during the pandemic owing to macroeconomic slowdowns due to extended shutdowns and prolonged economic slowdowns in the country caused by the pandemic. The demand for data centers has seen a positive rise, augmented by technology demand growth due to shutdowns. Companies upgrading IT infrastructures to support remote working amid shutdowns may shift workloads to the public and private cloud.