Switzerland Data Center Market Size and Share
Switzerland Data Center Market Analysis by Mordor Intelligence
The Switzerland Data Center Market size is estimated at USD 0.74 billion in 2025, and is expected to reach USD 1.13 billion by 2030, at a CAGR of 8.84% during the forecast period (2025-2030). In terms of installed base, the market is expected to grow from 850.60 megawatt in 2025 to 935.10 megawatt by 2030, at a CAGR of 1.91% during the forecast period (2025-2030). The market segment shares and estimates are calculated and reported in terms of MW. The market’s upward path draws strength from Switzerland’s sovereign-cloud positioning, strict data-residency rules, and the magnet effect of Zurich’s financial ecosystem. Accelerating artificial-intelligence training, high-performance computing, and low-latency trading continue to lift demand for high-density racks and liquid cooling. Operators secure long-term renewable–power purchase agreements that keep electricity costs predictable while satisfying corporate carbon targets. Hyperscaler capital, led by Microsoft and other cloud majors, is consolidating supply into fewer but larger campuses, while colocation providers differentiate through compliance services for regulated workloads.
Key Report Takeaways
- By data center size, large facilities controlled 55.84% of the Switzerland Data Center market share in 2024 and are advancing at a 2.40% CAGR through 2030.
- By tier type, Tier 3 retained 71.61% revenue share in 2024, whereas Tier 4 is on track for the quickest 2.90% CAGR to 2030.
- By facility type, colocation captured 71.32% of 2024 spending; hyperscale and self-built sites record the sharpest 1.90% CAGR to 2030.
- By end user, IT and telecom represented 45.50% of 2024 demand, while banking, financial services, and insurance is set for the steepest 2.00% CAGR to 2030.
- By hotspot, Zurich accounted for 60.28% revenue in 2024, but Geneva is forecast to expand fastest at a 3.50% CAGR through 2030.
Switzerland Data Center Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising AI and HPC workloads | +2.1% | National – Zurich and Geneva | Short term (≤ 2 years) |
| Hyperscaler sovereign-cloud compliance | +2.0% | Zurich–Geneva corridor | Short term (≤ 2 years) |
| Renewable-energy PPA availability | +1.8% | National – stronger in Alpine regions | Medium term (2-4 years) |
| Edge-computing mandates by telecoms | +1.5% | National – urban concentration | Medium term (2-4 years) |
| Zurich–Milan DC inter-connect route | +0.8% | Zurich and southern cantons | Long term (≥ 4 years) |
| Federal tax incentives for heat re-use | +0.6% | National – urban district-heating zones | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rising AI and HPC Workloads
Switzerland’s emergence as a hub for AI research is driving a surge in demand for GPU-dense facilities. The Swiss National Supercomputing Centre’s Alps system anchors Europe’s most powerful AI-centric platform, and Microsoft has reported that Swiss-origin Azure OpenAI traffic surged since 2023. Local banks now train large language models for fraud and risk assessment, while adhering to strict data-localization rules. Swisscom’s alliance with NVIDIA to co-build sovereign AI infrastructure widens the domestic compute pool and reduces dependency on cross-border capacity. Collectively, these developments channel high-margin, power-intensive workloads into Swiss facilities, fortifying pricing power and utilization rates.
Hyperscaler Sovereign-Cloud Compliance
Switzerland’s robust data-protection statutes, combined with its position outside the EU legal landscape, create a haven for regulated-sector cloud deployments. Microsoft’s CHF 400 million (USD 440 million) expansion-covering four campuses-underscores investor faith in the country’s compliance framework. Similarly, Google’s Zurich region operates three independent zones tailored to Swiss data-residency demands. These sovereign nodes keep sensitive healthcare and financial datasets inside national borders, steering premium workloads toward Swiss racks and lifting service-level requirements.
Renewable-Energy PPA Availability
The national grid has run on 100% renewable electricity for over a decade, anchored by an alpine hydropower asset. Federal incentive programs for photovoltaics and biomass strengthen this backbone, enabling operators to secure long-term green PPAs at predictable rates. [1]Swiss Federal Office of Energy, “Promotion programs,” bfe.admin.ch Stable renewable access mitigates energy-cost volatility, supports ESG scoring objectives, and opens additional revenue streams through waste-heat reuse in district-heating networks such as ewz’s Zurich program. The structure positions Switzerland as a leader in sustainability among European colocation hubs.
Edge-Computing Mandates by Telecoms
Licensing rules oblige mobile carriers to attain 50% population coverage with 700 MHz 5G spectrum by December 2024. [2]“5G regulation and law in Switzerland,” CMS Expert Guide, cms.law Carriers meet low-latency demands by deploying micro-data centers with a capacity of under 1 MW across urban rooftops and central-office sites. Swisscom already operates 924 locations with 5G+ and uses these as aggregation nodes for local breakouts, catalyzing incremental rack demand at the edge. Manufacturing, autonomous-vehicle testing, and smart-city pilots are increasingly consuming these micro-pops, adding distributed revenue layers to the Swiss Data Center market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High land and power pricing in Zurich | -1.2% | Zurich metropolitan area | Short term (≤ 2 years) |
| Limited skilled workforce pipeline | -1.0% | National – technical roles | Medium term (2-4 years) |
| Grid congestion in northern cantons | -0.8% | Northern Switzerland – Basel region | Medium term (2-4 years) |
| Stricter Swiss data-sovereignty rules | -0.6% | National – compliance-sensitive users | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High Land and Power Pricing in Zurich
The scarcity of industrial parcels near Zurich’s financial core drives up land costs above those of peer European metros. Power-distribution tariffs compound the hurdle, pushing total delivered-electricity prices up to 20% above national averages. Recent examples include Vantage’s CHF 370 million (USD 407 million) investment in a second Zurich megacampus, an endeavor sustainable only for well-capitalized operators. [3]Dan Swinhoe, “Microsoft to invest USD 400 million to grow Swiss data center footprint,” Data Center Dynamics, datacenterdynamics.com Smaller providers struggle to clear such hurdle rates, intensifying consolidation trends and concentrating new capacity outside city limits.
Limited Skilled Workforce Pipeline
Switzerland projects a 25,000-person IT talent deficit by 2024 and produces approximately 9,200 ICT graduates annually. Data center operators compete with banks, pharma, and embedded-software firms for electricians, cooling engineers, and network specialists. Wage inflation erodes operating margins and slows build schedules, creating a scale advantage for global players with internal academies and multinational recruitment pipelines. Workforce scarcity particularly crimps edge and regional-town projects that cannot rely on Zurich’s deeper labor market.
Segment Analysis
By Data Center Size: Large Facilities Drive Consolidation
Large facilities accounted for 55.84% of 2024 revenue, anchoring the Switzerland Data Center market with economies of scale in electrical, mechanical, and network provisioning. The Switzerland Data Center market size for large sites is expanding at a 2.40% CAGR as hyperscalers favor replicated, 15-MW building blocks that align with global deployment templates. Consolidation into fewer, bigger campuses reduces per-kilowatt capital outlays, simplifies capacity management, and allows operators to negotiate bulk renewable PPAs. Medium sites continue to serve latency-sensitive enterprise workloads, while small footprints remain essential for backup and edge caching. Massive and mega categories, although technically feasible, face permitting hurdles and grid upgrades that temper their rollout pace. The tilt toward large footprints underscores a shift in industry maturity away from boutique colocation halls toward platform-level campuses.
Operator strategies reflect this pivot: Microsoft’s four-campus blueprint pools 400 MW of potential capacity across Zurich and Geneva, while Green.ch’s Metro Campus Zurich features five buildings interconnected by a common utility backbone. Financial institutions find cost efficiencies in pre-provisioned, large-footprint suites paired with sovereign cloud availability zones. Meanwhile, Canton-level authorities are incentivizing waste-heat integration, encouraging large-site planners to connect to municipal heating loops. These synergies reinforce the premium that large-scale projects command in the Swiss Data Center market and crystallize a virtuous circle of scale economics, green power access, and tenant treasuries.
Note: Segment shares of all individual segments available upon report purchase
By Tier Type: Premium Availability Commands Growth
Tier 3 captured 71.61% of the 2024 spend, retaining its role as the de facto baseline for enterprise resilience. Yet, Tier 4 is pacing the field at a 2.90% CAGR, indicating elevated demand for availability from algorithmic trading desks, central bank operations, and life science research clusters. The Switzerland Data Center market share for Tier 4 remains modest but profitable as clients absorb additional redundancy premiums. Swisscom’s Tier IV-certified Bern-Wankdorf hall validated local appetite for fault-tolerant architectures, prompting rival operators to pursue similar ratings. Tier 1 and Tier 2 have shrunk to niche status, limited to dev-test workloads and edge cache nodes that can tolerate limited downtime.
Capital requirements for Tier 4 exceed Tier 3 by up to 30% due to dual-star electrical paths, concurrently maintainable cooling, and tighter fault-tolerance criteria. Despite the hefty bill, regulated entities prize the SLA headroom. Risk committees at major banks now embed Tier 4 residency clauses into colocation RFPs, boosting conversion rates for certified sites. Over the forecast horizon, Tier 3 inventory will still account for the bulk of square footage; however, revenue weighting will shift toward Tier 4 as its high-density racks and ancillary managed-services bundles yield superior returns.
By Data Center Type: Colocation Leads While Hyperscale Gains Ground
Colocation maintained a 71.32% grip on spending in 2024 as Switzerland-headquartered corporates favor neutral facilities that bundle connectivity to 700 carrier routes and three national IXPs. Wholesale blocks over 1 MW fuel the revenue core, whereas retail cages supply flexibility to SMEs navigating cloud-migration roadmaps. Hyperscale and self-built footprints, although representing just under one-third of the total space, are growing at a 1.90% CAGR through 2030 as cloud giants establish sovereign-cloud regions, guaranteeing Swiss data residency. Enterprise and edge footprints fill specialized gaps in private 5G, telemedicine, and Industry 4.0 use cases.
The Switzerland Data Center market size for hyperscale footprints is expected to double in absolute megawatts by 2030, despite a lower growth percentage, driven by multi-year campus buildouts by Microsoft and potential new entrants such as NTT Data. Colocation stalwarts respond by forming joint ventures with energy utilities and real estate trusts, monetizing land banks adjacent to substations. This dual-track ecosystem couples the flexibility of carrier-neutral meet-me rooms with the scale of self-built hyperscaler blocks, delivering a blended supply curve that caters to workload diversity across finance, life sciences, and the public sector.
By End User: Financial Services Drive Premium Demand
IT and telecom clients supplied 45.50% of the 2024 rack uptake, a testament to Switzerland’s role as a central European interconnect gateway. However, the banking, financial services, and insurance vertical is accelerating at a 2.00% CAGR as digital-asset custody, quantitative trading, and open-banking APIs increase latency sensitivity. The Swiss Data Center market size for financial workloads is projected to exceed USD 0.5 billion by 2030, driven by algorithmic trading and regulatory reporting compliance. Government agencies and international organizations contribute to a steady demand for sovereign-cloud containers that are resistant to extraterritorial subpoenas, while e-commerce players expand fulfillment micro-nodes near consumption centers.
Manufacturing firms are embedding edge nodes within smart-factory precincts, pushing some compute demand away from core campuses in Zurich while preserving centralized analytics backhaul. Media and entertainment houses ingest high-resolution assets in Geneva, then transcode through Zurich GPUs before streaming to global audiences. Healthcare, education, and professional services round out the consumption mosaic, with each segment willing to pay a premium for Swiss data protection certainty.
Note: Segment shares of all individual segments available upon report purchase
By Hotspot: Zurich Dominance Faces Geneva Challenge
Zurich held 60.28% of 2024 generated revenue, its status cemented by the SwissIX Internet Exchange and proximity to the largest banking institutions. The Switzerland Data Center market share in Zurich is forecast to slip marginally as land prices and grid bottlenecks prompt incremental builds to move outward. Geneva, clocking a leading 3.50% CAGR to 2030, enjoys cross-border traffic with France, proximity to CERN, and the presence of 180 international organizations. Microsoft’s mirror build strategy across both metros highlights the twin-node architecture required by regulated-sector customers who seek metro-diverse availability zones.
Rest-of-Switzerland locations, such as Basel, Bern, and Lugano, attract specialized industry demand—pharma, federal administration, and high-frequency trading connections to Milan, respectively. These sites exploit cheaper real estate and underutilized hydro resources, but face challenges in talent recruitment. Cantonal incentives, such as reduced network connection fees and accelerated permitting pipelines, which are beginning to narrow that gap, imply a more balanced geographic distribution post-2030.
Geography Analysis
Zurich anchors the Swiss data center market with a 60.28% share in 2024, sustained by ultralow-latency fiber links to Frankfurt, Milan, and Paris. Continued hyperscaler spending, as evidenced by Microsoft’s USD 400 million expansion plan, undergirds the city’s critical-mass advantage even as grid upgrades lag behind demand. Local authorities explore district-heating tie-ins that could reclaim up to 30 MW of waste heat, offering both sustainability credentials and operating-expense offsets.
Geneva represents the fastest-growing cluster, expanding at a 3.50% CAGR through 2030, driven by the United Nations' agency workloads and the data-intensive experiments at CERN. The canton’s direct hydro-electric feed and cross-border dark-fiber corridors enable competitive energy prices, mitigating its relatively smaller commercial land inventory. International non-profit organizations prize Geneva’s political neutrality and differentiated compliance regime, generating a pipeline of low-risk, high-stickiness contracts for local operators.
Beyond the two primary metros, secondary nodes in Basel, Bern, and Ticino fill geographic redundancy requirements and service edge applications. Basel leverages pharmaceutical analytics demand, Bern benefits from proximity to the federal government, and Lugano links to Italian stock exchange latency paths. Collectively, these regions account for less than 20% of the total megawatts yet serve critical diversification goals for disaster recovery planning among financial and manufacturing tenants. Renewable-energy abundance in alpine cantons further positions these zones as a growth option should congestion in Zurich persist.
Competitive Landscape
The Switzerland Data Center market demonstrates moderate concentration, with the top five operators controlling roughly 55% of active megawatts. International players such as Microsoft, Google, and Vantage integrate global design templates with local compliance overlays, while domestic providers like Swisscom and Green.ch emphasize carrier neutrality and multi-cloud on-ramps. Consolidation accelerates-STACK Infrastructure’s acquisition of Safe Host marked the largest M&A deal of January 2025, instantly granting STACK a tri-campus footprint spanning Geneva and Zurich.
Strategic priorities center on renewable-energy procurement, high-density liquid cooling, and sovereign cloud certifications. Operators retrofit chillers with warm-water loops to supply district heating grids, generating ancillary revenue while reducing PUE. Software-defined interconnect fabrics, now a standard, allow tenants to set up cross-cloud circuits in under a minute, a capability vital to financial-trading risk controls. Meanwhile, disruptors pursue edge niches: telecom tower-owners retrofit shelters into micro-data centers, and utilities explore substation-adjacent container farms to monetize stranded power.
Vendor differentiation hinges on local compliance expertise, bilingual support staff, and the ability to broker flexible, multi-year renewable energy hedges. As capital intensity rises, pension funds and infrastructure sovereign wealth vehicles seek stable yields, driving sale-and-leaseback deals that replenish operator balance sheets for further expansion. Over the outlook period, competitive dynamics will intensify around Geneva’s emerging sovereign-cloud corridor and Zurich’s constrained but premium market core.
Switzerland Data Center Industry Leaders
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STACK Infrastructure
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Microsoft Corporation
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Vantage Data Centers Management Company, LLC
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Green Datacenter AG
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Equinix, Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Microsoft announced a USD 400 million program to enlarge four Swiss campuses, adding AI-optimized capacity and meeting regulated-sector latency targets.
- March 2025: Alpiq secured a 125 MW battery-energy storage project in Finland, signaling Swiss utilities’ move into data-center-aligned grid-stabilization assets.
- January 2025: STACK Infrastructure entered EMEA by acquiring Safe Host, creating a combined Swiss estate exceeding 80 MW.
- January 2025: NTT Data unveiled a USD 10 billion global expansion plan through 2027, laying groundwork for a potential Swiss region via Berlin and Frankfurt land banks.
Switzerland Data Center Market Report Scope
Zurich are covered as segments by Hotspot. Large, Massive, Medium, 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.| Large |
| Massive |
| Medium |
| Mega |
| Small |
| Tier 1 and 2 |
| Tier 3 |
| Tier 4 |
| Hyperscale/Self-built | ||
| Enterprise/Edge | ||
| Colocation | Non-Utilized | |
| Utilized | Retail Colocation | |
| Wholesale Colocation | ||
| BFSI |
| IT and ITES |
| E-Commerce |
| Government |
| Manufacturing |
| Media and Entertainment |
| Telecom |
| Other End Users |
| Zurich |
| Rest of Switzerland |
| By Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| By Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| By Data Center Type | Hyperscale/Self-built | ||
| Enterprise/Edge | |||
| Colocation | Non-Utilized | ||
| Utilized | Retail Colocation | ||
| Wholesale Colocation | |||
| By End User | BFSI | ||
| IT and ITES | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media and Entertainment | |||
| Telecom | |||
| Other End Users | |||
| By Hotspot | Zurich | ||
| Rest of Switzerland | |||
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