Site icon Connected World

Data Center Market Starts off Strong in 2023

Every second of every day, business, individuals, and devices are creating data. While no one knows for sure exactly how much data is created every day, it could be up to 463 exabytes per day by 2025. And even with all this data overflowing from every smart device and connected machine, businesses still crave more—more connectivity, more data, and, ultimately, more data-driven insights that can lead to data-driven decisions.

As the demand for connectivity grows, so has the demand for data centers to process this information. Projections suggest this upward trajectory in data centers will continue throughout the decade, and, as a result, the data center infrastructure will inevitably swell as well.

Spherical Insights suggests the global data center infrastructure market will grow from $50 billion in 2021 to $120 billion by 2030, in part due to the prevalent rise in connected applications and online services globally. The research firm also suggests more small and medium-sized businesses and startups are implementing network infrastructure solutions, adding to market growth.

Similarly, Statista says the importance of data centers in both the private and public sectors is growing thanks to digitization, as well as an increase in cloud computing and big data. Statista’s data suggests data center spending increases during favorable economic conditions and typically decreases afterward. The company says COVID has delayed investments in data centers, but revenue in the data center market is still predicted to exceed $342 billion in 2023, with network infrastructure being the market’s largest segment.

A new report from datacenterHawk offers more insight on the global data center infrastructure market. The company’s 1Q 2023 Data Center Market Recap reports high demand but ongoing challenges across markets in North America, Europe, APAC (Asia-Pacific), and Latin America. On the heels of what datacenterHawk calls “historic growth” in 2022, the first quarter 2023 results suggest demand for capacity in major data center markets continues to be strong.

The report says power and land shortages have pushed developers to seek out new markets with more power available at a lower cost. For instance, datacenterHawk specifically says companies are looking to alternative locations like Atlanta, Ga., Columbus, Ohio, Las Vegas, Nev., Salt Lake City, Utah, and Denver, Co.

In the first quarter of 2023, demand in North America settled after several record-setting periods between 2020 and 2022. In Europe, data center capacity demand remained consistent. The analysis noted European nations are adjusting their data center operations, strategies, and policies to increase data sovereignty, privacy, and security.

In the APAC region, datacenterHawk points to obstacles like geography that make development challenging. However, APAC hubs like Singapore and Hong Kong are undergoing major developments to keep up with demand for cloud services in these areas. Finally, in Latin America, the first quarter of the year saw a surge in growth due to factors like technology adoption and data center investment.

Across the globe, thanks to steadily rising demand as well as uncertainties like power limitations, supply chain issues, and overall rising costs, it’ll likely prove to be an interesting year in the space.

Want to tweet about this article? Use hashtags #IoT #sustainability #AI #5G #cloud #edge #digitaltransformation #machinelearning #infrastructure #bigdata #datacenters #supplychain #connectivity #datacenterHawk #energy

Exit mobile version