Our societal and business reliance on data is growing exponentially as we move towards a digitalized world.
In recent years, data center demand has primarily been driven by the cloud giants – enterprise companies, financial institutions, and government agencies have all been moving to the cloud. Hyperscalers are leading the way in a market that was expected to grow at a CAGR of 24.25% over the forecast period of 2019-2024.
So, what are the trends that continue to drive this growth of data centers into the ‘20s?
Today, greater numbers of enterprises are migrating their data centers to the cloud, and hybrid systems have started coming more into effect where enterprises mix in-house computing with the movement of larger systems to the cloud.
Growth in power demand continues to outweigh the many gains in energy efficiency that we are seeing in data centers – a shift to sustainable power and recognition of the UN SDGs has started. We will see more of a shift to renewable energy as data center operators move to a carbon-neutral footprint.
COVID-19, it seems, has caused seismic shifts to both usage patterns and scale of activity. Businesses moving operations to the cloud, a work-from-home workforce, remote learning through education providers, etc., all mean that data centers are continuing to expand, seemingly at an even faster pace than before.
Digital trends will continue to drive data center growth – artificial intelligence, autonomous vehicles, robotics, and IoT. And with AI growth, Edge data centers will play a critical role in the ability to store and analyze data closer to the source.
In a world where we want everything faster, cheaper, and bigger, it makes sense that we move to a digital way of working, where everything is automated, from the designs we carry out to the products we build, manage, and operate.
Digital services and automation will be the way forward.