Data Center Market - Global Outlook & Forecast 2023-2028

Data Center Market - Global Outlook & Forecast 2023-2028
The global data center market is expected to grow at a CAGR of 5.03% from 2022 to 2028.

KEY TRENDS & DRIVERS

Innovative IT Infrastructure Adoption

New innovative IT technologies are replacing the traditional IT infrastructure, improving the functionality and sustainability of the facilities. Some trending innovations in the IT infrastructure include adopting NVMe storage devices, ARM-based architecture, 200/400 GbE ports, converged and hyper-converged infrastructure, and others.

Shift Toward Operating Sustainable Data Centers

The hyperscale and colocation operators such as Meta (Facebook), Microsoft, Google, Amazon Web Services, CyrusOne, Digital Realty, Equinix, Iron Mountain, Vantage Data Centers, STACK Infrastructure, QTS Realty Trust, and others are involved in signing several Power Purchase Agreement (PPA) across the world to power their facilities with renewable energy. In addition, many smaller facilities operators are installing solar panels on the rooftops of their facilities.

Advanced and Innovative Data Center Technologies

The data centers have witnessed immense changes and transformations in adopting power and cooling infrastructure. Some of such innovations include diesel generators getting replaced with natural gas, hydrotreated vegetable oil (HVO), and hydrogen fuel cells, replacing lead-acid batteries with advanced UPS batteries such as Lithium-ion, Nickle-Zinc, and Prussian Blue sodium-ion, and microgrid adoption in facilities majorly among hyperscalers.

Adoption of AI-based Infrastructure Driving Liquid Immersion and Direct-To-Chip Cooling

Liquid cooling is the most popular cooling technology used in High-Performance Computing (HPC) in the data center market to support AI and ML workloads. Google adopted liquid cooling for its latest AI hardware and has retrofitted its existing data center infrastructure to accommodate liquid cooling. Meta (Facebook) has announced its plan to pause its several new and expansion projects across the US, as it wants to create a new AI design for the facilities.

Supply Chain Issues

The supply chain is among the major challenge faced by data center developers in recent times. The supply chain issue was aided by the onset of COVID-19, leading to a shortage of infrastructure such as chips, power equipment, cooling infrastructure, and other infrastructure. Also, political instability and disturbances between Russia and Ukraine led to a price hike in energy and fuel costs.

SEGMENTATION INSIGHTS

INSIGHTS BY FACILITY TYPEGoogle, Meta (Facebook), Microsoft, Oracle, Amazon Web Services, Alibaba, and Apple are some of the major hyperscale companies in the data center market that operate facilities and have a presence worldwide.Real estate companies are also involved in setting up new data center business units and offering colocation services. For instance, American Real Estate Partners (AREP) and Harrison Street Real Estate formed a new joint venture (JV) called PowerHouse Data Centers to develop facilities in Northern Virginia.Segmentation by Facility TypeHyperscale Data CentersColocation Data CentersEnterprise Data CentersINSIGHTS BY IT INFRASTRUCTUREIn servers, AI-based computing infrastructure is gaining increased traction in the market. NVMe Flash storage is dominating with its growth rate and 25/100 GbE switch ports among network infrastructures.Operators are adopting high-density servers to improve the efficiency of their facilities. It is expected that operators are likely to use more rack servers, followed by blade servers.Segmentation by InfrastructureIT InfrastructureElectrical InfrastructureMechanical InfrastructureGeneral ConstructionSegmentation by IT InfrastructureServer InfrastructureStorage InfrastructureNetwork InfrastructureINSIGHTS BY ELECTRICAL INFRASTRUCTUREVendors in the global data center market continuously innovate with UPS solutions to increase efficiency and reduce costs. In terms of capacity, there is an increased interest among facilities to procure UPS systems of more than 750 kVA. In contrast, smaller facilities and hyperscale in-rack UPS solutions are the major contributors to UPS systems with a capacity of less than 500 kVA.Currently, operators majorly use diesel for backup power. However, diesel-powered generators are noisy and cause adverse environmental effects. Diesel generators are now giving way to power backup using natural gas, which data center operators will adopt in the medium term.Segmentation by Electrical InfrastructureUPS SystemsGeneratorsTransfer Switches & SwitchgearsPDUsOther Electrical InfrastructureINSIGHTS BY MECHANICAL INFRASTRUCTUREIn data center projects, the investment in cooling systems is expected to be 15?20% of the overall cost, depending on the facility design and IT load. The selection of cooling systems is based on the location, i.e., whether the climatic conditions favor free cooling and have abundant water resources.The higher rack power density, powerful infrastructure, and increase in high-performance computing have led to innovations by vendors in new designs and types of racks.Segmentation by Mechanical InfrastructureCooling SystemsRacksOther Mechanical InfrastructureINSIGHTS BY GENERAL CONSTRUCTION SERVICESSupply chain constraints have increased the data center construction and procurement cost, averaging USD 2 - USD 3 million per MW.Building development involves providing access to incoming and outgoing network fibers. The brownfield development of data centers will continue to grow along with installing on-site renewable power sources such as wind and solar energy to partially or entirely power operations.Segmentation by General ConstructionCore & Shell DevelopmentInstallation & Commissioning ServicesEngineering & Building DesignFire Detection & SuppressionPhysical SecurityDCIM/BMS SolutionsGEOGRAPHICAL ANALYSISThe Americas region is among the world's most mature and developed data center markets. In 2022, the U.S. and Canada led the market regarding investment, white floor addition, and power capacity.In the Latin America region, Brazil is considered among the developed markets, with other countries such as Mexico, Chile, and Colombia among the emerging locations in the region.Segmentation by GeographyNorth AmericaThe U.S.CanadaLatin AmericaBrazilMexicoChileColombiaRest of Latin AmericaWestern EuropeGermanyIrelandThe U.K.FranceBelgiumSwitzerlandItalySpainNetherlandsPortugalOther Western European CountriesNordicsNorwaySwedenDenmarkFinland & IcelandCentral & Eastern EuropeRussiaPolandAustriaCzech RepublicOther CEE CountriesMiddle EastUAESaudi ArabiaBahrainOmanKuwaitQatarIsraelJordanOther Middle East CountriesAfricaSouth AfricaKenyaNigeriaEgyptEthiopiaOther African CountriesAPACChinaHong KongAustraliaNew ZealandJapanIndiaSouth KoreaTaiwanRest of APACSoutheast AsiaSingaporeIndonesiaMalaysiaThailandPhilippinesVietnamOther Southeast Asia CountriesVENDOR LANDSCAPEThe colocation providers are undertaking the construction of facilities in a phased manner, depending on the market demand. Over the next few years, there is expected to be more demand for higher-capacity systems.Vendors such as Arista Networks, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, IBM, Huawei Technologies, NetApp, Lenovo, and others are among the top IT infrastructure providers in the global data center market.Key Data Center IT Infrastructure ProvidersArista NetworksAtosBroadcomCisco SystemsDell TechnologiesHewlett Packard Enterprise (HPE)Huawei TechnologiesIBMJuniper NetworksLenovoNetAppOther Data Center IT Infrastructure ProvidersDataDirect Networks (DDNExtreme NetworksFujitsuHitachi VantaraInfortrend TechnologyInspurIntelMicron TechnologyMiTAC HoldingsNECNimbus DataOraclePure StorageSeagate TechnologySilk (Kaminario)SupermicroSynologyToshibaStorCentricQNAP SystemsQuanta Cloud TechnologyQuantum (Pivot3)Western DigitalWistron (Wiwynn)Key Data Center Support Infrastructure ProvidersABBCaterpillarCumminsDelta ElectronicsEatonLegrandRolls-RoyceSchneider ElectricSTULZVertivOther Data Center Support Infrastructure Providers3MAiredaleAlfa LavalAsetekAssa AbloyBloom EnergyCarrierCondairCormantCyber Power SystemsDaikin AppliedData AireEnlogicFNT SoftwareGenerac Power SystemsGreen Revolution Cooling (GRC)HITEC Power ProtectionHoneywellJohnson ControlsKOHLERKyotoCoolingMitsubishi ElectricMuntersNatron EnergyNetZoomNlyte SoftwarePanduitPiller Power SystemsRittalSiemensTrane (Ingersoll Rand)Tripp LiteYanmar (HIMOINSA)ZincFiveKey Data Center ContractorsAECOMArupCorganDPR ConstructionFortis ConstructionHolder ConstructionJacobsMercuryRed EngineeringRogers-O’Brien ConstructionSyska Hennessy GroupTurner ConstructionTurner & TownsendKey Data Center Operators21Vianet Group (VNET)Amazon Web ServicesAppleChina TelecomColt Data Centre Services (Colt DCS)Compass DatacentersCyrusOneDigital RealtyEdgeConneX (EQT Infrastructure)EquinixGDS ServicesGlobal SwitchGoogleIron MountainMeta (Facebook)MicrosoftNTT Global Data CentersQTS Realty TrustSTACK InfrastructureST Telemedia Global Data CentresVantage Data CentersOther Data Center Operators3dataAfrica Data CentresAirTrunkAlignedAmerican TowerAQ ComputeArubaAtlasEdgeatNorthAT TOKYOBDx (Big Data Exchange)Bulk InfrastructureBridge Data CentresCDC Data CentresChayoraChina MobileChindataCloudHQCologixCOPT Data Center SolutionsCtrlS DatacentersCyxtera TechnologiesData4DataBankDC BLOXDigital EdgeDigital Parks AfricaElement CriticalePLDTeStruxture Data Centersfifteenfortyseven Critical Systems Realty (1547)FlexentialGreen MountainGulf Data HubH5 Data CentersHostDimeKDDIKeppel Data CentresKhazna Data Centers (G42 & Etisalat)LG UplusLumen Technologiesmaincubes oneMainOne (Equinix)MEEZAMillicom (Tigo)MobilyMoro HubNEXTDCNxtra by AirtelODATAOrange Business ServicesOoredooPrime Data CentersPrinceton Digital Group (PDG)Proximity Data CentresRack CentreRaxio GroupRostelecom Data CentersSabey Data CentersSaudi Telecom Company (stc)Scala Data CentersSify TechnologiesSkybox DatacentersStream Data CentersSUNeVision (iAdvantage)SwitchT5 Data CentersTenglong Holdings GroupTeraco (Digital Realty)TierPointTurkcellUrbacon Data Centre SolutionsWinguYondrYotta Infrastructure (Hiranandani Group)New EntrantsAdaniConneXAUBixCloudoonClusterPowerCorscale Data CentersDamac Data Centres (EDGNEX)Data Center FirstDHAmericasEdge CentresEvolution Data CentresGlobal Technical RealtyHickoryiMCriticalInfinityKasi CloudMettaDCOpen Access Data CentresPowerHouse Data CentersPure Data Centres GroupQuantum LoopholeQuantum Switch Tamasuk (QST)Stratus DC ManagementYCO CloudYTL Data CenterZeroPoint DCKEY QUESTIONS ANSWERED:

1. How big is the global data center market?

2. What is the growth rate of the global data center market?

3. What is the estimated market size in terms of area in the global data center market by 2028?

4. What are the key trends in the data center market?

5. How many MW of power capacity is expected to reach the global data center market by 2028?