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Data center spending is up – is your infrastructure ready to keep up with the Jones’s?
Key Takeaways- Data center infrastructure spending is expected to grow annually due to increased data demands and secure storage solutions
- The increased usage of online systems and the widespread adoption of the internet of things are the primary growth factors for data center construction, expansion, and overall infrastructure spending
- Companies are investing in other data center solutions, such as edge computing and colocation, to improve customer experience and efficiency.
Increase in data demands
The pandemic prompted lifestyle changes that increased the demand for data centers. As remote and hybrid working became the norm, so did the need for reliable data storage solutions to enable efficient collaboration. An average user now uses multiple devices connected to the cloud. The rise of artificial intelligence, the Internet of Things (IoT), machine learning, and cloud computing have increased the demand for efficient data storage, data analytics, transmission, and reliable recovery solutions. As internet usage continues to increase, so will data creation. More users will migrate to cloud-based services. The virtual world is becoming more unified, prompting data center providers to expand their scope of services to cater to the modern customer. Cloud computing, hybridization, and virtualization have become the realities of today. As these services get new customers, data demands — and data centers — will surge.Data center infrastructure spending is driving growth
The increased reliance on online systems for businesses and consumers is the major growth factor for data center infrastructure spending. They require high-density data centers with advanced hardware, software, and data analytics solutions to handle the increasing data. Other growth factors include:- Widespread adoption of IoT and cloud computing.
- Increase in the number of new data centers.
- Rise in demand for high-quality data center hardware.
- The focus on the use of sustainable, renewable energy and reduction of power consumption will increase the market demand for cooling solutions.
- Growth in the number of SMEs and public sector companies.
- Establishment of more colocation centers.
- Free-trade zones and adoption of business-friendly regulations.
4 ways businesses are future-proofing data centers for increasing data needs
Besides the usual expenses, companies are also directing more expenditure towards other infrastructure development to future-proof their data centers. These developments aim to improve efficiency to increase their bottom line and achieve sustainability.1. Sustainable, renewable energy for data centers
The green data center market is estimated to reach $55 billion by 2027, growing at a CAGR (compound annual growth rate) of 7.5%. Providers are investing in sustainable innovations with sustainable construction and the adoption of renewable energy as the primary growth factors. Consequently, spending on sustainable infrastructure such as natural gas generators, eco diesel generators, and fuel cells has increased infrastructure spending.2. Expansion and construction of new data centers
As a result of the increased demand, data centers need to be prepared and adequately equipped to handle large data quantities. This means building more data centers and expanding the capacity of existing ones. With the growth the industry is experiencing, you'd expect more construction. However, lockdowns due to the pandemic delayed the construction of new data centers. At the same time, supply chain shortages have caused the cost of construction materials to skyrocket, worsening the situation. Consequently, providers must find solutions for optimizing space usage and increasing capacity without increasing the footprint, scheduling downtime, or overheating. This means investing and switching to renewable energy where possible and modernizing infrastructure to increase the efficiency of storage devices, servers, and other equipment. Even with the delays, it is estimated that more than 350 billion will be spent on data center construction from 2022 to 2027. The primary elements where this expenditure will be directed include:- Facilities: Design and construction of usable space to keep the equipment.
- Core components: These are the hardware and software needed for storing data and applications, including servers, storage systems, and information security components like firewalls and network infrastructures, such as routers and switches.
- Support infrastructure: For sustaining availability securely. These include UPS (uninterrupted power sources) like generators and battery banks, physical security systems like video surveillance and biometrics systems, and environmental controls such as cooling systems, ventilation, exhaust systems, heating, and computer room air conditioners.
3. Colocation
A colocation is a data center facility where companies can rent space to host IT hardware like servers. Instead of housing the servers on-premises, businesses can migrate their assets to a third-party data center. Colocation services from hyper-scale data center providers include the building that houses the equipment, power, security systems, networking, and cooling components. The customer provides storage and servers. These services eliminate the expenditure required to build and maintain a company's data center. It also allows them to retain control and ownership of their servers. Small businesses can access advanced security systems for their data and large operating servers they otherwise could not afford.4. Edge computing
Edge computing reduces latency by processing data close to the end user. Today's end users demand access to data, applications, and services anywhere, anytime, making latency intolerable. Consequently, organizations are investing in edge data centers as an efficient, high-performance way to improve customer experience and functionality. Edge data centers are smaller facilities located at the end of a network, closer to users and devices. According to PWC, the global edge data centers market will reach $13.5 billion in 2024. Industries investing in edge computing include;- Telecommunication
- Healthcare
- Autonomous vehicles
- Smart factories and cities
- Public transit systems
- Traffic management systems
Find the right storage solution with Unisol International
The need for secure data storage will continue to increase as data demand increases. Organizations must invest in a reliable and secure solution for storing their data. Unisol International is an award-winning global data center infrastructure and technology solutions provider. We offer:- Wired and wireless networking like routers, switches, and towers.
- Custom-built enterprise-grade servers and storage solutions.
- Electronic security, including biometric systems, network cameras, and video data analytics.
- Business cloud services like cyber security, cloud backup, and collaboration applications.
