The global data center market is expected to reach $289.66
billion by 2028, growing at a compound annual growth rate of 5.03%. The
Americas, particularly the United States and Canada, lead the market, while
Brazil and emerging locations in Latin America show promise. Colocation
providers are adopting a phased approach to facility construction to meet the
demand for higher-capacity systems. Key trends in the market include the
adoption of innovative IT infrastructure, the shift towards sustainable data
centers, advanced technologies, AI-based infrastructure, and supply chain
challenges due to the COVID-19 pandemic and political instability.
- The global data center market is projected to reach
$289.66 billion by 2028, growing at a CAGR of 5.03%. - The Americas region, particularly the United States and
Canada, leads the market in terms of investment and capacity. - Key trends shaping the market include the adoption of
innovative IT infrastructure, a shift towards sustainable data centers, and the
use of advanced technologies like AI-based infrastructure and liquid cooling.
The global data center market is on a rocket-fueled
trajectory, projected to hit a whopping $289.66 billion by 2028. That’s a
mind-blowing increase from its current value of $215.73 billion. The market is
anticipated to grow at a compound annual growth rate (CAGR) of 5.03% from 2022
to 2028. Get ready to dive into the trends and drivers shaping this booming
industry.
The Americas region stands out as one of the most advanced
and developed data center markets worldwide. In 2022, the United States and
Canada led the market in terms of investment, white floor addition, and power
capacity. Brazil, on the other hand, is considered a developed market in Latin
America, with emerging locations such as Mexico, Chile, and Colombia showing
promise.
Colocation providers are responding to market demand by
adopting a phased approach to facility construction. As the need for higher-capacity
systems continues to rise, there will likely be an increased demand for these
providers to deliver.
According to the press release, some of the top IT
infrastructure providers in the global data center market include Arista
Networks, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, IBM,
Huawei Technologies, NetApp, Lenovo, and others.
Now let’s delve into some key trends and drivers shaping the
data center market:
Innovative IT Infrastructure Adoption
The market is witnessing a shift towards new and innovative
IT technologies that are replacing traditional infrastructure. These
advancements not only enhance functionality but also improve sustainability.
Some notable innovations include the adoption of NVMe storage devices, ARM-based
architecture, 200/400 GbE ports, converged and hyper-converged infrastructure,
among others.
Shift Towards Operating Sustainable Data Centers
There is a growing trend among hyperscale and colocation
operators to power their facilities with renewable energy. Major players such
as Meta (Facebook), Microsoft, Google, Amazon Web Services, and others are
signing Power Purchase Agreements (PPAs) globally. Additionally, smaller
facility operators are installing solar panels on their rooftops to contribute
to sustainability efforts.
Advanced and Innovative Data Center Technologies
Data centers are constantly evolving when it comes to power
and cooling infrastructure. Notable innovations in this area include the
replacement of diesel generators with natural gas, hydrotreated vegetable oil
(HVO), and hydrogen fuel cells. Lead-acid batteries are being replaced with
advanced UPS batteries such as Lithium-ion, Nickle-Zinc, and Prussian Blue
sodium-ion. Furthermore, microgrid adoption is gaining traction among hyperscalers.
Adoption of AI-based Infrastructure Driving Liquid Immersion
and Direct-To-Chip Cooling
Liquid cooling has become a popular technology in
High-Performance Computing (HPC) within the data center market, particularly
for supporting AI and ML workloads. Companies like Google have embraced liquid
cooling for their latest AI hardware and have retrofitted their existing data
center infrastructure accordingly. Meta (Facebook) has also announced plans to
develop a new AI design for their facilities, leading to a pause in several new
and expansion projects across the US.
Supply Chain Issues
Data center developers have faced significant challenges due
to supply chain issues, particularly exacerbated by the onset of the COVID-19
pandemic. Shortages of infrastructure components such as chips, power
equipment, and cooling infrastructure have been experienced. Additionally,
political instability and disturbances between Russia and Ukraine have
contributed to energy and fuel cost increases.
Final Thoughts
As the data center market continues to surge forward, driven
by innovative IT infrastructure, sustainability initiatives, advanced
technologies, and the demand for higher-capacity systems, it’s clear that the
future is bright. However, we can’t overlook the challenges posed by supply
chain issues, which have been further complicated by the COVID-19 pandemic and
geopolitical tensions. As the industry evolves, it’s crucial for stakeholders
to address these challenges and ensure a smooth growth trajectory. With the
right strategies in place, the global data center market is poised to
revolutionize the way we store and process data, paving the way for a more
connected and efficient digital future. So, buckle up and get ready for an
exhilarating journey into the world of data centers!
FAQ
Q: What is the projected value of the global data center
market by 2028?
A: The global data center market is projected to reach a
value of $289.66 billion by 2028, representing a significant increase from its
current value of $215.73 billion.
Q: Which region is considered one of the most advanced and
developed data center markets worldwide?
A: The Americas region, particularly the United States and
Canada, is considered one of the most advanced and developed data center
markets worldwide.
Q: Which countries led the data center market in terms of
investment, white floor addition, and power capacity in 2022?
A: In 2022, the United States and Canada led the data center
market in terms of investment, white floor addition, and power capacity.
Q: What are some emerging locations in Latin America’s data
center market?
A: Some emerging locations in Latin America’s data center
market include Mexico, Chile, and Colombia, showing promise for growth.
Q: Which IT infrastructure providers are considered the top
players in the global data center market?
A: Some of the top IT infrastructure providers in the global
data center market include Arista Networks, Cisco Systems, Dell Technologies,
Hewlett Packard Enterprise, IBM, Huawei Technologies, NetApp, Lenovo, and
others.
Q: What are some notable innovations in IT infrastructure
adoption within the data center market?
A: Notable innovations in IT infrastructure adoption within
the data center market include the adoption of NVMe storage devices, ARM-based
architecture, 200/400 GbE ports, converged and hyper-converged infrastructure,
among others.
Q: What is the trend among hyperscale and colocation
operators when it comes to powering their facilities?
A: There is a growing trend among hyperscale and colocation
operators to power their facilities with renewable energy. Major players such
as Meta (Facebook), Microsoft, Google, Amazon Web Services, and others are
signing Power Purchase Agreements (PPAs) globally. Additionally, smaller
facility operators are installing solar panels on their rooftops to contribute
to sustainability efforts.
Q: What are some advanced and innovative technologies being
adopted in data centers?
A: Some advanced and innovative technologies being adopted
in data centers include the replacement of diesel generators with natural gas,
hydrotreated vegetable oil (HVO), and hydrogen fuel cells. Lead-acid batteries
are being replaced with advanced UPS batteries such as Lithium-ion, Nickel-Zinc,
and Prussian Blue sodium-ion. Furthermore, microgrid adoption is gaining
traction among hyperscalers.
Q: How is the adoption of AI-based infrastructure driving
liquid immersion and direct-to-chip cooling?
A: The adoption of AI-based infrastructure is driving the
use of liquid immersion and direct-to-chip cooling technologies in data
centers. Liquid cooling, particularly for supporting AI and ML workloads, has
become popular in High-Performance Computing (HPC). Companies like Google have
embraced liquid cooling for their latest AI hardware and have retrofitted their
existing data center infrastructure accordingly.
Q: What challenges have data center developers faced due to
supply chain issues?
A: Data center developers have faced significant challenges
due to supply chain issues. The onset of the COVID-19 pandemic has exacerbated
these issues, leading to shortages of infrastructure components such as chips,
power equipment, and cooling infrastructure. Additionally, political
instability and disturbances between Russia and Ukraine have contributed to
energy and fuel cost increases.
Q: What factors are driving the substantial growth of the
global data center market?
A: The substantial growth of the global data center market
is driven by factors such as innovative IT infrastructure adoption,
sustainability initiatives, advanced technologies, AI-based infrastructure, and
the increasing demand for higher-capacity systems.
