Dublin, July 04, 2023 (GLOBE NEWSWIRE) -- 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 grow at a CAGR of 5.03% from 2022 to 2028, reaching a value of 289.66 billion by 2028.
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.
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.
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.
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.
Insights by Facility Type
- Google, Meta (Facebook), Microsoft, Oracle, Amazon Web Services, Alibaba, and Apple are some of the major hyperscale companies in the data center market that operate facilities and have a presence worldwide.
- Real estate companies are also involved in setting up new data center business units and offering colocation services. For instance, American Real Estate Partners (AREP) and Harrison Street Real Estate formed a new joint venture (JV) called PowerHouse Data Centers to develop facilities in Northern Virginia.
Segmentation by Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
Insights by IT Infrastructure
- In servers, AI-based computing infrastructure is gaining increased traction in the market. NVMe Flash storage is dominating with its growth rate and 25/100 GbE switch ports among network infrastructures.
- Operators are adopting high-density servers to improve the efficiency of their facilities. It is expected that operators are likely to use more rack servers, followed by blade servers.
Segmentation by Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Segmentation by IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
Insights by Electrical Infrastructure
- Vendors in the global data center market continuously innovate with UPS solutions to increase efficiency and reduce costs. In terms of capacity, there is an increased interest among facilities to procure UPS systems of more than 750 kVA. In contrast, smaller facilities and hyperscale in-rack UPS solutions are the major contributors to UPS systems with a capacity of less than 500 kVA.
- Currently, operators majorly use diesel for backup power. However, diesel-powered generators are noisy and cause adverse environmental effects. Diesel generators are now giving way to power backup using natural gas, which data center operators will adopt in the medium term.
Segmentation by Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
Insights by Mechanical Infrastructure
- In data center projects, the investment in cooling systems is expected to be 15-20% of the overall cost, depending on the facility design and IT load. The selection of cooling systems is based on the location, i.e., whether the climatic conditions favor free cooling and have abundant water resources.
- The higher rack power density, powerful infrastructure, and increase in high-performance computing have led to innovations by vendors in new designs and types of racks.
Segmentation by Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Insights by General Construction Services
- Supply chain constraints have increased the data center construction and procurement cost, averaging USD 2 - USD 3 million per MW.
- Building development involves providing access to incoming and outgoing network fibers. The brownfield development of data centers will continue to grow along with installing on-site renewable power sources such as wind and solar energy to partially or entirely power operations.
Segmentation by General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
Geographical Analysis
- 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.
Vendor Landscape
- 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 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
- 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
Key Questions Answered in the Report
- How big is the global data center market?
- What is the growth rate of the global data center market?
- What is the estimated market size in terms of area in the global data center market by 2028?
- What are the key trends in the data center market?
- How many MW of power capacity is expected to reach the global data center market by 2028?
Key Attributes
| Report Attribute | Details |
| No. of Pages | 1234 |
| Forecast Period | 2022-2028 |
| Estimated Market Value (USD) in 2022 | $215.73 Billion |
| Forecasted Market Value (USD) by 2028 | $289.66 Billion |
| Compound Annual Growth Rate | 5.0% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/wc1o55
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