Market Trends of Paris Data Center Industry
Tier 1 and 2 Segment Expected to Hold Significant Market Share
- Datacenter tiers are an effective way of characterizing the infrastructure components used in a company's data center. The tier 1 data center has a single power and cooling channel, and there are few redundant backup components. It is predicted to have an uptime of roughly 99.671% (28.8 hours of downtime per year). This solution may be adequate for hosting a small business, website, or blog, but it is unsuitable for a corporation with mission-critical applications.
- For tier 1, the center provides businesses with a dedicated space for IT systems, an Uninterrupted Power Supply (UPS), cooling equipment, and an engine generator to meet basic backup needs in case of system failure. For a small business, Tier I may be the ideal solution. The Tier-1 infrastructure is designed for start-up companies needing a colocation data center. This is the easiest budget-conscious option for the small business. The infrastructure consists of a single uplink, a single path for power, and non-redundant servers.
- A Tier-1 colocation center offers dedicated site infrastructure to enable information technology beyond the confines of an office setting. Tier-1 infrastructure contains a separate location for IT systems, a UPS for filtering power surges and brief outages, dedicated cooling equipment that will not be turned off at the end of normal office hours, and an engine generator to safeguard IT services from extended power outages.
- A Tier II data center, on the other hand, includes a single power and cooling line and some redundant and backup components. It is predicted to have an uptime of roughly 99.741% (22 hours of downtime per year). As a failover, redundancy refers to alternative systems such as power, HVAC, and network that are used temporarily in the event of a disturbance. The continuous operation of IT server hardware and related networking equipment is the cornerstone of redundancy. Tier II data centers are often targeted for SMB (small and medium) sized business clients. Tier II providers are also able to handle more clients. Small business servers typically use this level in the region. There is a massive decline in features from levels III to II.
- Further, according to the innovative city index, Paris has the highest score among the other European cities; Paris has a score of 55 out of 60 in 2022 and stands in 4th position in the innovative global cities. Such developments towards innovations would create an opportunity for the market players to establish their data centers in this city and expand their service portfolio to firms in other cities.
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BFSI Expected to Drive the Market
- 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.
- Moreover, banks and insurance companies must reinvent themselves due to changing regulations, emerging technology, elevated client expectations, and the entry of disruptive competitors. In the fintech industry, online lending has increased in city demand. Thus, online banking will become more popular each year, and it is expected to increase the demand for resilient, safe, cost-effective, and energy-efficient data center solutions, driving the need for data center construction.
- Furthermore, advances in digitization, such as the introduction of PSD2 and robust e-commerce growth, would likely pave the way for developing of numerous new payment methods. A growing range of payment methods, including Apple Pay, Google Pay, RatePAY, Amazon Pay, and many more expected to boost the rise of digital payments. This is predicted to generate a massive amount of data, increasing the demand for cloud adoption and, in turn, increasing the need for data center building around the city.
- The digital ecosystem surrounding a bank is exploding at a rapid pace. With the constant change in demand of consumers, there has been pressure on the banks to customize the product offerings according to their needs. Secondly, consumers who embrace a mobile lifestyle and socialize on digital platforms expect banks to connect with them on the same media. This is affecting the demand for the construction of data centers in the BFSI sector. According to Culture Banque, Boursorama has the highest number of customers in France, with 3,000,000; such a vast number of customers would increase different kinds of data like KYC, online transactions, and many more, allowing the studied market to grow.
