Market Trends of Data Center Services Industry
Cloud and Hosting is Expected to Capture a Major Share in the Data Center Services Market
- There are currently billions of Internet-connected devices, and the number is growing. Many generate large amounts of data, which must be recorded, processed, stored, assessed, and retrieved. With the development of IoT and Industry 4.0, manufacturers rely on big data and data analytics to increase their operations' productivity, cost-effectiveness, security, and efficiency.
- With fresh data being generated quickly over time, the intelligence from data becomes even harder to capture promptly. New digital landscapes, such as smart cities and intelligent buildings, offer more readily available data.
- Moreover, the public cloud is increasing because of lower costs and low maintenance. The data can be accessed at any time and on any device. This is helping small- and medium-sized businesses grow tightly, controlling their costs by paying for the infrastructure based on their needs.
- In October 2022, Intel Corp and Alphabet Inc's Google Cloud announced a co-designed chip that can improve the security and efficiency of data centers. The E2000 chip, code-named Mount Evans takes over the work of packaging data for networking from the expensive central processing units(CPU) that do the main computing. It also offers better security between different customers that may be sharing CPUs in the cloud.
- For instance, in June 2022, Oracle Cloud Infrastructure (OCI) announced the expansion of its distributed cloud services with specialized regions and previewing the Compute Cloud@Customer. OCI Dedicated Regions provides the entire public cloud to more customers and client data centers with a new, smaller infrastructure footprint and lower pricing. On average, the new OCI Dedicated Region consumes 60-75% less data center space and electricity, with a typical customer paying roughly USD 1 million annually.
- Owing to the abovementioned factors, the data center services market is expected to grow during the forecast period.
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North America holds the substantial share in the market
- North America is home to many technological innovators. The region has a high demand for technologies like cloud computing and IoT. These technologies need robust data center facilities to handle the increasing complexities. This, in turn, is anticipated to increase the demand for data center services in the region.
- Also, the United States is one of the largest-growing economies in the world, and it is likely to boost the growth of public cloud-based data centers. The IT industry dominates the United States market as the largest private sector employer in the country, where data centers are widely used, thereby propelling the market growth.
- Moreover, the country has also witnessed a rise in its hyper-scale platforms, so providing data center services for the United States' hyper-scale platforms has become necessary.
- Also, colocation data centers are becoming increasingly popular in the region as businesses realize the majority of benefits of leasing from a colocation building their own data center infrastructure. The complexities in the infrastructure facilities, owing to the integration of technologies like networks and connectivity devices, are increasing rapidly.
- Large network operators such as Microsoft, Facebook, and Amazon Web Services (AWS) are large US investors, accounting for more than 50% of total investment in the last year. NTT Global Data Centers, Equinix, Digital Realty, QTS Realty Trust, Switch, Vantage Data Centers, and CyrusOne were among the colocation operators that invested in the United States in the last year.
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