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.