Data Center Colocation Market to Surge with CAGR of 7% by 2028, Driven by 5G and Sustainability Trends

World Information Heart Colocation Market

Dublin, March 15, 2024 (GLOBE NEWSWIRE) — The “Global Data Center Colocation Market – Outlook & Forecast 2023-2028” report has been added to ResearchAndMarkets.com’s providing.

The information heart colocation market was valued at USD 30.42 billion in 2022 and is forecast to develop at a CAGR of seven.25% from 2022 to 2028, reaching USD 46.3 billion in 2028

The European knowledge heart colocation market is attracting substantial investments, with Western Europe drawing the main focus of these world operators looking for to increase their presence. Moreover, favorable insurance policies make the Nordics a horny hub for investments. The main contributors to inexperienced knowledge heart growth in Latin America embrace Brazil, Chile, Argentina, and Paraguay; these international locations’ knowledge heart operators and governments are working towards adopting renewable vitality and different measures.

In Central and Japanese Europe, knowledge heart operators are securing land for brand spanking new services or repurposing present buildings to satisfy the rising calls for for infrastructure. Over USD 450 million was invested in Central & Japanese European international locations in 2022.

The UAE and Saudi Arabia are the most important contributors to energy capability within the Center East & Africa area, accounting for a share of round 24% and 16%, respectively. The information heart colocation market in these international locations is predicted to skyrocket in 4 to 5 years because of the shift from the oil economic system to the digital economic system. As well as, South Africa is the most important contributor to energy capability in Africa, accounting for a share of over 60%; Nigeria and Kenya comply with this. Cloud-based providers, good metropolis developments, and fiber connectivity are the opposite components driving steady colocation knowledge heart investments throughout the area.

The Center East & Africa market is constantly rising by way of connectivity by deploying new submarine cables, equivalent to Africa-1, 2Africa, India Europe Xpress (IEX), Raman, Saudi Imaginative and prescient, Blue, Equiano, Medusa Submarine Cable System, and SeaMeWe – 6, which can be prepared for providers throughout the forecast interval.

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Information facilities within the Center East & Africa area spend money on cooling infrastructure because of the prevalence of excessive temperatures in some international locations. In 2022 cooling methods accounted for over 65% of the overall mechanical infrastructure.

KEY MARKET TRENDS

Rising Concentrate on Sustainability

• Firms within the world knowledge heart colocation market give attention to utilizing renewable vitality as their primary energy supply. Operators are planning to scale back environmental hurt by utilizing clear vitality options. This alteration is a component of a bigger development within the business to undertake renewable sources, equivalent to photo voltaic and wind energy, to run knowledge facilities and different infrastructure.

5G Deployments Fueling Edge Information Heart Demand

• 5G community deployments have fueled digital transformation, the expansion of IoT and good cities, and the fourth industrial revolution. All of the areas are working towards adopting digital transformation to draw international investments.

• Speedy investments in 5G know-how have elevated the demand for high-bandwidth web in Tier II and Tier III cities and contributed to substantial knowledge quantity. These components have accelerated knowledge heart developments to course of the data at par with the most important international locations and supported the information heart colocation market development.

• The deployment of 5G providers has impacted the ICT, authorities, manufacturing, providers, agriculture, and retail industries. 5G community providers play a key function in supporting enterprise digitalization, thereby driving the adoption of IoT functions.

Adoption of Superior IT Infrastructure in Information Facilities

• Information facilities are outfitted with servers and community and storage options. Conventional IT infrastructure continuously influences the information heart business because it requires extra bodily area and is costlier, leading to a drop in demand.

• Converged infrastructure is a {hardware} platform the place servers with inner or exterior storage choices and community switches are supplied as built-in rack-scale methods.

• ARM is a chip know-how agency that creates mental property, which different companies license to kind their processor chips. An ARM server is an enterprise-class pc server that employs many ARM processors fairly than a conventional processor.

• Server virtualization divides the bodily server into a number of and remoted servers utilizing varied software program functions. Server virtualization is broadly adopted within the knowledge heart colocation market since a single bodily server can host dozens of functions as digital machines as a substitute of internet hosting every utility in its designated server, decreasing recurring know-how bills by 50%.

Surge in Rack Energy Density

• Rack energy density is without doubt one of the essential components in knowledge heart design, capability planning, cooling, and energy provisioning.

• Over the previous few years, an unprecedented rise within the rack energy density of IT tools has been noticed. The adoption of compute-intensive workloads, equivalent to AI, IoT, Augmented and Digital Actuality (AR/VR), and the favored cryptocurrency mining development have elevated the information storage and processing necessities, necessitating high-density racks.

• The surge in demand for Excessive-Efficiency Computing (HPC), led by the adoption of converged and hyper-converged options and virtualization strategies, will contribute to the rise in rack energy density to a mean of 10 to 12 kW throughout the forecast interval.

• The expansion in rack energy density has propelled using revolutionary and versatile facility designs together with augmenting the adoption of rack-level UPS options and numerous electrical energy feeds for racks.

Market Progress Enablers

• Rising M&A and Joint Ventures within the Market

• Rising Submarine & Inland Connectivity

• Massive Information & IoT Fueling Information Heart Investments

• Authorities Assist for Information Heart Developments

Market Restraints

• Rising Carbon Emissions from Information Facilities

• Location Constraints on Information Heart Growth

• Issues of Energy Availability Challenges

• Lack of Expert Information Heart Professionals

• Safety Challenges in Information Facilities

• Excessive Upkeep Prices & Inefficiencies

• Provide Chain Disruptions

Key Attributes:

SEGMENTATION INSIGHTS

Segmentation by Colocation Providers

• Retail Colocation

• Wholesale Colocation

Segmentation by Infrastructure

Segmentation by Electrical Infrastructure

Segmentation by Mechanical Infrastructure

Segmentation by Cooling Techniques

• CRAC & CRAH Items

• Chiller Items

• Cooling Towers, Condensers & Dry Coolers

• Economizers & Evaporative Coolers

• Different Cooling Items

Segmentation by Cooling Methods

• Air-based Cooling

• Liquid-based Cooling

Segmentation by Normal Building

• Core & Shell Growth

• Set up & Commissioning Providers

• Engineering & Constructing Design

• Hearth Detection & Suppression

• Bodily Safety

• DCIM/BMS Options

VENDOR LANDSCAPE

Wholesale and retail colocation distributors are anticipated to thrive sooner or later because of the elevated demand out there. Numerous sectors, together with BFSI, IT/telecom, and cloud, drive the demand for colocation providers. The worldwide knowledge heart colocation market has grown considerably over the previous few years, with investments from world, regional, and knowledge heart operators.

The event of hyperscale knowledge heart campuses in all areas will herald a major income alternative for distributors that supply the fastest-growing applied sciences, equivalent to liquid immersion cooling, direct-to-chip cooling, lithium-ion UPS, HVO turbines, microgrid applied sciences, renewable energy options, and net-zero water knowledge facilities.

Distinguished Information Heart Buyers

Different Distinguished Distributors

• 365 Information Facilities

• AdaniConneX

• Africa Information Centres

• AirTrunk

• Aligned Information Facilities

• American Tower

• Atman

• atNorth

• AT TOKYO

• Aruba

• Massive Information Change

• CDC Information Centres

• Center3

• Chayora

• CloudHQ

• Cologix

• Colt Information Centre Providers

• Compass Datacenters

• COPT Information Heart Options

• CtrlS Datacenters

• Cyxtera Applied sciences

• DATA4

• DataBank

• DC BLOX

• DCI Indonesia

• Edge Centres

• ePLDT

• Flexential

• World Change

• Inexperienced Mountain

• Gulf Information Hub

• H5 Information Facilities

• HostDime

• Iron Mountain

• Web Thailand

• KDDI

• Keppel Information Centres

• Khazna Information Facilities

• LG Uplus

• MettaDC

• NEXTDC

• Open Entry Information Centres

• Orange Enterprise Providers

• Princeton Digital Group

• QTS Realty Belief

• Rostelecom Information Facilities

• Sabey Information Facilities

• Skybox Datacenters

• Stream Information Facilities

• Scala Information Facilities

• Sify Applied sciences

• SUNeVison Holdings (iAdvantage)

• Change

• T5 Information Facilities

• Tenglong Holding Group

• TierPoint

• Turkcell

• Urbacon Information Centre Options

• Viettel IDC

• Wingu

• Yondr

• Yotta Infrastructure

New Entrants

For extra details about this report go to https://www.researchandmarkets.com/r/6te5ek

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