Top 5 Data Center Trends You Need to Know in 2021
Expected to post a year-over-year growth rate of 18.30%, the datacenter market is forecast to grow by USD 519.34 billion during the period 2021-2025. Source: technavio
With no signs of slowing, from small to hyper-scale, the increasing demand for colocation opportunities, and the implementation of 5G technologies, new data centers are being constructed closer to the data origins as the market positions itself for remarkable growth.
Accelerated by the pandemic, “the move to digitization has accelerated, and the benefits will be permanent,” says KPMG’s Carande.
Digitization has occurred across nearly every industry. According to Cisco systems, data center IP traffic will reach 20.6 ZB by the end of 2021, an increase of nearly 7ZB since 2016.
The largest driver for fuelling data center capacity is generated from cloud services providers and the IT industry. Owing to the increasing demand from the hyper-scale vendors, Europe is increasingly becoming a primary hotspot for the colocation industry. With over 2148 facilities across the region, it’s estimated that Europe’s colocation footprint will dominate the global market.
2. IOT growth
As more people adopt smart technologies in their place of business and in their homes, the IoT market is expected to grow by 140% ( over $50 billion ) by 2022. Source: Juniper research
Juniper foresees the rise of edge computing and a larger investment in edge datacenters from hyper scale colocation providers such as Amazon.
3. Green energy
Sustainability issues will be a big trend in 2021. Not only are regions where data centers are located starting to concentrate on water consumption, but energy consumption and emissions are also a growing concern. In response, expect many data centers to start investing in renewable resources and engage in discussions that focus on this industry challenge.
Look for data centers to find ways to not only reduce their impact on the environment but also ways to help other sectors as well, as with waste heat recycling.
Driven by the need for social distancing, to limit contact, more data centers will shift to remote capabilities for monitoring, and services such as remote hands. Further, a 2020 survey of data center managers confirm that staffing issues are still a concern and are likely to drive the need for automation. Source: Uptime Institute
Globally, hyperscale platforms such as Microsoft Azure, Google Cloud Platform, Facebook, and other digitally-driven giants have leased mega volumes of capacity at a rapid rate. The scale and velocity of this growth have changed the data center colocation business dramatically. Much of this hypergrowth happened in established datacenter markets such as Amsterdam, and Frankfurt service locations Source: global market insights