Exclusive Research Report on Worldwide Data Center Market by Arizton - Investment Prospects in 9 Regions and 51 Countries

CHICAGO, June 6, 2023 /PRNewswire/ -- According to Arizton's latest research report, the worldwide data center market will grow at a CAGR of 5% during 2022-2028.

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North America and Western Europe are among the mature and developed markets in data center development. APAC countries such as China, Japan, Singapore, Australia, and others are among the advanced market with the presence of all the global data center operators. Countries such as India, Malaysia, Indonesia, Hong Kong, and others are witnessing growth in terms of development from several new operators entering the data center market.

Hyperscalers such as Meta (Facebook), Microsoft, Google, and Amazon Web Services are actively involved in expanding their presence in existing locations across the U.S. and are expanding to other countries apart for the United States. The Nordics region is also among the preferred locations by the hyperscalers to develop data center facilities owing to the free cooling solutions, availability of renewable energy, district heating systems, and others. Some major colocation operators involved in the investment in 2022 include Equinix, Digital Realty, QTS Realty Trust, Iron Mountain, Vantage Data Centers, NTT Global Data Centers, STACK Infrastructure, CyrusOne, ST Telemedia Global Data Centres, AirTrunk, GDS Services, and VNET Group.

Worldwide Data Center Market Report Scope

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Key Highlights

• In 2022, the global data center market witnessed investments of over $215.73 billion owing to investments from colocation operators, such as Equinix, Digital Realty, Vantage Data Centers, STACK Infrastructure, Iron Mountain, QTS Realty Trust, NTT Global Data Centers, DataBank, and ST Telemedia Global Data Centres.
• Hyperscalers, such as Meta (Facebook), Microsoft, Amazon Web Services (AWS), and Google, also aid the market with investments. These companies expand their global presence, focusing on emerging locations across Europe and APAC.
• Aside from AWS, Google, and Microsoft, cloud operators include Alibaba Cloud, Tencent Cloud, Oracle, IBM Cloud, and OVHcloud. They are involved in the development of several cloud regions globally, which will increase data center investments.

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Data Centers Embrace Liquid Cooling for AI & ML Workloads

Rapid Surge in Liquid Cooling Adoption as Data Centers Cater to Demands of AI & ML Workloads. Superior Efficiency and Cooling Solutions Vital for Data Centers Handling AI & ML Workloads, Fueling Growth of Liquid Cooling Technology. Meta (Facebook) Puts Expansion Projects on Hold to Develop AI-Optimized Data Center Designs, Highlighting Importance of Advanced Cooling Technologies. Two-Phase Immersion Cooling and Direct-to-Chip Solutions Gain Traction as Data Centers Address Heat Challenges from AI & ML Workloads.

Tax Incentives Drive Data Center Market Growth, with the U.S. and India Leading the Way

Data Center Market Growth Fueled by Tax Incentives as Countries Compete for Operators. The U.S. Dominates Data Center Market with Tax Incentives, India Emerges as a Strong Competitor. Tax Incentive Strategies Propel Data Center Market Expansion in the U.S. and India. States in the U.S. and India Offer Lucrative Tax Incentives to Attract Data Center Investments. India's Data Center Market Rises with Tax Incentive Policies, Following the U.S. Trend. Tax Incentive Initiatives Boost Data Center Market in the U.S. and Key Indian States. The U.S. and Indian States Roll Out Tax Incentives to Foster Data Center Investments.

Impact of Supply Chain Disruptions
Supply chain disruptions are a major challenge faced by data center developers recently. With the onset of COVID-19, supply chain disruptions increased, leading to a shortage of infrastructure such as power equipment, cooling infrastructure, chips, and other infrastructure. Also, political instability and disturbances between Russia and Ukraine led to a price hike in energy and fuel costs. One of the major shortages faced by operators was chip shortage, which led to a decline in the manufacturing of several infrastructures.

Key Investors & Investments

In 2022, hyperscale investments in the US were over 25 projects by major operators, including Meta (Facebook), Google, Microsoft, and AWS.

Recently, Meta (Facebook) announced its plan to pause expanding and constructing new data center facilities across the US and the world. The company aims to design a new AI data center and redesign its data center facilities for artificial intelligence workloads.

Hyperscale providers continuously expand. For instance, AWS announced its plan to invest around $2.4 billion in the UK to build and operate data centers.

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The report includes the investment in the following areas: 

Facility Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgears
• PDUs
• Other Electrical Infrastructure

Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Cooling Technique

• Air-based Cooling
• Liquid-based Cooling

General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Building & Engineering Design
• Fire Detection & Suppression
• Physical Security
• DCIM

Tier Standards

• Tier I & Tier II
• Tier III
• Tier IV

Geography

• North America
• The US
• Canada
• Latin America
• Brazil
• Chile
• Colombia
• Mexico
• Rest of Latin America
• Western Europe
• The UK
• Germany
• France
• Netherlands
• Ireland
• Italy
• Spain
• Belgium
• Switzerland
• Portugal
• Other Western European Countries
• Nordics
• Norway
• Sweden
• Denmark
• Finland & Iceland
• Central & Eastern Europe
• Russia
• Poland
• Austria
• Czech Republic
• Other CEE Countries
• Middle East
• The UAE
• Saudi Arabia
• Israel
• Oman
• Kuwait
• Qatar
• Bahrain
• Jordan
• Other Middle East Countries
• Africa
• South Africa
• Kenya
• Nigeria
• Egypt
• Ethiopia
• Other African Countries
• APAC
• China
• Hong Kong
• Australia
• New Zealand
• India
• Japan
• South Korea
• Taiwan
• Rest of APAC
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• Thailand
• Philippines
• Vietnam
• Other Southeast Asia Countries

About Our Data Center Capabilities

Arizton's team of principal consultants and analysts work towards publishing extensive secondary and primary research that is credible, resourceful, and data-driven. With over 5 years of experience, Arizton has helped several Fortune 500 companies with data-driven insights that enabled them to expand their businesses to niche regions, added over a billion dollars in revenues, and effective go-to-market strategies. We offer various product portfolios to meet the client requirements, which align with their key business strategies and identify high-value growth avenues.

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Check the detailed table of contents of the report @ https://www.arizton.com/market-reports/data-center-market-investment-forecast?details=tableOfContents

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