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Global Data Center Market Outlook & Forecasts 2023-2028: 5G Deployments Fueling Edge Data Center Investments as Sustainable Innovations in Data Center Power Technology Gain Momentum

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News provided by

Research and Markets

Jul 11, 2023, 11:00 ET

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DUBLIN, July 11, 2023 /PRNewswire/ -- The "Data Center Market - Global Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The global data center market is expected to reach a value of $289.66 billion by 2028 from $215.73 billion, growing at a CAGR of 5.03% from 2022 to 2028

The 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.

The 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 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.

Premium Insights

Key Highlights/ Trends

  • Shift Toward Sustainable Measures to Reduce Carbon Emissions
  • Innovative and Sustainable Data Center Power Technologies
  • Ai to Boost Liquid-Cooling Adoption
  • Government Support to Develop Data Centers
  • Impact of Supply Chain Disruptions

Facility Type

  • Data Center Electrical Infrastructure
  • Data Center Mechanical Infrastructure
  • Data Center General Construction Services

Vendor Analysis

  • Data Ceter It Infrastructure Providers
  • Data Center Support Infrastructure Providers
  • Data Center Contractors
  • Data Center Investors/Operators

Market Opportunities & Trends

Adoption of It Infrastructure

Sustainability Initiatives by Data Center Operators

5G Deployments Fueling Edge Data Center Investments

Surge in Rack Power Density

Sustainable Innovations in Data Center Power Technology

  • Ecodiesel Generators
  • Natural Gas Generators
  • Fuel Cells (Hydrogen)
  • Hydrotreated Vegetable Oil (Hvo) Fuel
  • Nuclear Energy Generation
  • Other Innovations

Innovative Data Center Power Technologies

  • Adoption of Advanced Ups Batteries
  • Software-Defined Data Centers & Ai in Power Monitoring
  • Microgrids

Automation & Intelligent Monitoring Solutions

Adoption of Ai-Based Infrastructure Driving Liquid Immersion & Direct-To-Chip Cooling

Market Growth Enablers

  • Growing Submarine & Inland Connectivity
  • Increasing M&As and Jvs Across the Industry
  • Big Data & IoT Fueling Data Center Investments
  • Government Support for Data Center Investments
  • Increasing Demand for Cloud-Based Services

Market Restraints

  • Rising Carbon Emissions from Data Centers
  • Site Selection Hindrances to Data Center Development
  • Lack of Skilled Data Center Professionals & Discrimination
  • Security Challenges Impacting Data Center Growth
  • High Maintenance Costs & Inefficiencies
  • Supply Chain Disruptions Hampering Growth

Key Data Center IT Infrastructure Providers

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise (HPE)
  • Huawei Technologies
  • IBM
  • Juniper Networks
  • Lenovo
  • NetApp

Other Data Center IT Infrastructure Providers

  • DataDirect Networks (DDN
  • Extreme Networks
  • Fujitsu
  • Hitachi Vantara
  • Infortrend Technology
  • Inspur
  • Intel
  • Micron Technology
  • MiTAC Holdings
  • NEC
  • Nimbus Data
  • Oracle
  • Pure Storage
  • Seagate Technology
  • Silk (Kaminario)
  • Supermicro
  • Synology
  • Toshiba
  • StorCentric
  • QNAP Systems
  • Quanta Cloud Technology
  • Quantum (Pivot3)
  • Western Digital
  • Wistron (Wiwynn)

Key Data Center Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Legrand
  • Rolls-Royce
  • Schneider Electric
  • STULZ
  • Vertiv

Other Data Center Support Infrastructure Providers

  • 3M
  • Airedale
  • Alfa Laval
  • Asetek
  • Assa Abloy
  • Bloom Energy
  • Carrier
  • Condair
  • Cormant
  • Cyber Power Systems
  • Daikin Applied
  • Data Aire
  • Enlogic
  • FNT Software
  • Generac Power Systems
  • Green Revolution Cooling (GRC)
  • HITEC Power Protection
  • Honeywell
  • Johnson Controls
  • KOHLER
  • KyotoCooling
  • Mitsubishi Electric
  • Munters
  • Natron Energy
  • NetZoom
  • Nlyte Software
  • Panduit
  • Piller Power Systems
  • Rittal
  • Siemens
  • Trane (Ingersoll Rand)
  • Tripp Lite
  • Yanmar (HIMOINSA)
  • ZincFive

Key Data Center Contractors

  • AECOM
  • Arup
  • Corgan
  • DPR Construction
  • Fortis Construction
  • Holder Construction
  • Jacobs
  • Mercury
  • Red Engineering
  • Rogers-O'Brien Construction
  • Syska Hennessy Group
  • Turner Construction
  • Turner & Townsend

Key Data Center Operators

  • 21Vianet Group (VNET)
  • Amazon Web Services
  • Apple
  • China Telecom
  • Colt Data Centre Services (Colt DCS)
  • Compass Datacenters
  • CyrusOne
  • Digital Realty
  • EdgeConneX (EQT Infrastructure)
  • Equinix
  • GDS Services
  • Global Switch
  • Google
  • Iron Mountain
  • Meta (Facebook)
  • Microsoft
  • NTT Global Data Centers
  • QTS Realty Trust
  • STACK Infrastructure
  • ST Telemedia Global Data Centres
  • Vantage Data Centers

Other Data Center Operators

  • 3data
  • Africa Data Centres
  • AirTrunk
  • Aligned
  • American Tower
  • AQ Compute
  • Aruba
  • AtlasEdge
  • atNorth
  • AT TOKYO
  • BDx (Big Data Exchange)
  • Bulk Infrastructure
  • Bridge Data Centres
  • CDC Data Centres
  • Chayora
  • China Mobile
  • Chindata
  • CloudHQ
  • Cologix
  • COPT Data Center Solutions
  • CtrlS Datacenters
  • Cyxtera Technologies
  • Data4
  • DataBank
  • DC BLOX
  • Digital Edge
  • Digital Parks Africa
  • Element Critical
  • ePLDT
  • eStruxture Data Centers
  • fifteenfortyseven Critical Systems Realty (1547)
  • Flexential
  • Green Mountain
  • Gulf Data Hub
  • H5 Data Centers
  • HostDime
  • KDDI
  • Keppel Data Centres
  • Khazna Data Centers (G42 & Etisalat)
  • LG Uplus
  • Lumen Technologies
  • maincubes one
  • MainOne (Equinix)
  • MEEZA
  • Millicom (Tigo)
  • Mobily
  • Moro Hub
  • NEXTDC
  • Nxtra by Airtel
  • ODATA
  • Orange Business Services
  • Ooredoo
  • Prime Data Centers
  • Princeton Digital Group (PDG)
  • Proximity Data Centres
  • Rack Centre
  • Raxio Group
  • Rostelecom Data Centers
  • Sabey Data Centers
  • Saudi Telecom Company (stc)
  • Scala Data Centers
  • Sify Technologies
  • Skybox Datacenters
  • Stream Data Centers
  • SUNeVision (iAdvantage)
  • Switch
  • T5 Data Centers
  • Tenglong Holdings Group
  • Teraco (Digital Realty)
  • TierPoint
  • Turkcell
  • Urbacon Data Centre Solutions
  • Wingu
  • Yondr
  • Yotta Infrastructure (Hiranandani Group)

New Entrants

  • AdaniConneX
  • AUBix
  • Cloudoon
  • ClusterPower
  • Corscale Data Centers
  • Damac Data Centres (EDGNEX)
  • Data Center First
  • DHAmericas
  • Edge Centres
  • Evolution Data Centres
  • Global Technical Realty
  • Hickory
  • iMCritical
  • Infinity
  • Kasi Cloud
  • MettaDC
  • Open Access Data Centres
  • PowerHouse Data Centers
  • Pure Data Centres Group
  • Quantum Loophole
  • Quantum Switch Tamasuk (QST)
  • Stratus DC Management
  • YCO Cloud
  • YTL Data Center
  • ZeroPoint DC

For more information about this report visit https://www.researchandmarkets.com/r/o97czm

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

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