Mega Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Mega Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
The Mega Data Center Market size is expected to grow from USD 23.23 billion in 2023 to USD 29.34 billion by 2028, at a CAGR of 4.78% during the forecast period (2023-2028). Key HighlightsVirtualization has driven the data center industry over the years. Companies have sought to reduce infrastructure by focusing IT operations on fewer, more highly utilized machines. This process has led to a wider view of data centers in general. Companies operating multiple data centers can choose to focus their facilities on fewer and larger implementations to decrease complexity and costs.Implementing fewer mega data centers, depending on their locations, can allow a company to enjoy advantages of certain local benefits, such as tax incentives, low energy prices, climate, or availability of alternative energy sources. Thus, mega data centers result from attempts to minimize cost and maximize profit.The merits of choosing a software-led, industry-relevant, and adequately set-up mega data center are lower costs of IT management compared to the present, as well as the ability to access a vast amount of internet and industrial Internet data at local data center speed and bandwidth. This capability is likely to spur IT spending worldwide, as early adopters will have substantial opportunities to invest in new IT techniques to reduce overall business costs and increase revenues.Factors including increasing cloud and colocation services, associated cost benefits, and improved economies of scale drive the market for mega data centers. Microsoft, Google, Amazon Web Services (AWS), and Facebook data centers are in a class by themselves. They have to function fully automatic, self-healing, networked mega data centers that operate at fiber optic speeds to make a fabric that can access any node in any particular data center, as there are multiple pathways to every node.However, higher initial investments and low resource availability are some factors presenting challenges to this market. Despite such challenges, various organizations have already adopted or are initiating the adoption of mega data centers.Mega Data Center Market TrendsRising Demand of Data Centers in Banking and Finance Sectors The banking and finance sector is one of the largest generators of data, and the need for a data center to regulate the cost of operations is a primary driver. Finance and banking structures use data centers to store customer records, employee management, transactions, and electronic banking services, such as remote banking, telebanking, and self-inquiry, which need data centers to function. Data centers, as infrastructure, are believed to be the future of finance. Many institutions have created private cloud systems to accommodate massive network, storage, and server capacities to support their retail financial centers, ATMs, and active online accounts. Many banks maintain their own data centers, but it has been observed that the trend is changing due to fluctuations in the banks' profits. Also, maintaining a data center is cumbersome, owing to the cost drain on IT, real estate, and operations, as it requires proper cooling, security, and power facilities. This can act as a challenge for the BFSI industry during the forecast period. Growing Demand from Asia-Pacific to Drive the Market The growing demand for high-density, redundant facilities throughout China is precipitating a shift in the design and development of the country’s data centers. China has 50 internet users per 100 population, indicating scope for a lot of development, and the connectivity ecosystem comprises 73 colocation data centers, 52 cloud service providers, and 0 network fabrics. However, power, space, and IP transit all cost more in China, emphasizing the difficulties in maintaining a data center. Similarly, in India, the digital economy contributes 9.5% of the GDP. The digital economy includes USD 25.518 billion fixed-line telephone subscriptions and 1.01 billion mobile telephone subscriptions, indicating a lot of scope for the development of data centers. Moreover, owing to regulatory and security reasons, a number of organizations in India, especially from the BFSI sector, are not allowed to host their data in a data center that is out of the country. As a result, the data center providers are setting up local data centers in India, indicating the growing mega data center facilities in India.Mega Data Center Industry Overview The mega data center market is highly concentrated due to higher initial investments and low availability of resources, which present challenges to this market. Some of the key players in the market are Cisco Systems Inc., Dell Software Inc., Fujitsu Ltd, and Hewlett-Packard Enterprise. Some recent developments in the market include: In September 2022, Microsoft launched its new data center region in Qatar, becoming the first hyper-scale cloud provider to offer enterprise-grade services in the nation.Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support Please note: The report will take approximately 2 business days to prepare and deliver.