Given the emergence of cutting-edge technologies, trends, new constructions, and rising global demand, the data center market is booming and undergoing a historic transformation over the past few years, while the leading data center companies are growing with a substantial speed. Indeed, the growing popularity of Internet of Things (IoT), cloud storage and other cloud-based technologies are forcing the largest data center providers to stay highly adaptive. Consequently, the data center industry has become extremely competitive and is going through a wave mergers and acquisition (M&A) activities.
Global Data Center Market Analysis
The demand for cloud-based storage facilities is growing at an unprecedented rate, boosting the need for powerful data centers. As a result, data center providers and cloud companies altogether spent more than $20 billion in 2017 to expand the global data center infrastructure. According to the market analysts at Technavio, the global data center market is set to grow at a CAGR of more than 10 % over the next five years. In terms of geography, the Americas contributed the maximum share of the data center solutions market in 2017 and will continue to grow at a considerable rate till 2022.
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Top 10 Data Center Companies in the World 2018
Google (Alphabet) has been a pioneer in data center infrastructure market and has set the pace for the landscape with the scale, accuracy, and efficiency of its global network. Google data centers are the biggest facilities that the company uses to provide services, which combine huge amounts of digital storage, internal and external networking, compute nodes, environmental controls (mainly dehumidification and cooling), and operations software that concerns fault tolerance and load balancing. One of the biggest Google data centers is located in The Dalles, Oregon.
Some of the software Google uses in their data center infrastructure include Google Web Server (GWS), storage systems including Google File System, BigTable, Spanner, Google F1, and others. Google has planned to build five new data centers by the end of 2018 along with three subsea cables in 2019 to expand its global network, making it one of the largest data center companies.
Find out Google’s market share in the global Data Center Market
Amazon Web Services
Amazon Web Services (AWS) entered the cloud computing world in 2006, developing a cloud infrastructure that allows enterprises to securely build and innovate faster. The company has been consistently innovating systems and designs of their data centers by implementing controls, building automated systems, and undergoing third-party audits in order to protect them from natural risks. Today, Amazon’s AWS has a highly reliable, low-cost cloud infrastructure platform that powers thousands of businesses across 190 countries in the world with data center locations in Europe, Brazil, Australia, Singapore, Japan, and the US.
The AWS Cloud currently covers 55 Availability Zones in more than 18 geographic regions and one local region around the world, with announced plans for implementing 12 more AZs in four regions including Hong Kong SAR, Sweden, and Bahrain.
Digital Realty Trust
Serving domestic and international customers across a range of industry verticals including information technology, financial services, manufacturing, energy and internet enterprises, Digital Realty Trust has become one of the world’s largest wholesale data center providers. The real estate investment trust (REIT) has more than 101 properties with over 26 million sq. Ft of rentable space that contains applications critical to the regular operation of corporate enterprise datacenters customers and technology industry customers.
Digital Realty Trust’s portfolio is in more than 27 marketplaces throughout Europe, North America, and the Pacific Rim. The company also holds 14 properties with more than 1.9 million sq. ft rentable space as investments.
Download related report for FREE: Global Hyperscale Data Center Market 2017-2021
Equinix
Equinix is one of the ever-growing data center companies which started in 1998 with a vision to create an online marketplace where the information-driven ecosystem could grow and thrive. Today, the company is connecting, powering, and protecting the digital economy of companies across many industry verticals including enterprise, networking, digital media, cloud and financial services in 45+ markets across EMEA, Americas, and Asia-Pacific regions.
The company’s customers include content providers (eBay, Netflix, and DIRECTV), cloud and IT services (Microsoft, Amazon.com, and Salesforce.com), and network and mobility providers (Comcast, AT&T, and BT). Equinix today operates around 200 data centers across the world with global customers accounting for over 50 % of sales.
Microsoft
Microsoft, the computer giant has been building and managing data centers infrastructure for over 25 years. The company’s cutting-edge cloud-scale data centers provide the foundational technologies and core infrastructure for its 200+ services, including MSN, Office 365, Skype, Xbox Live, Bing, OneDrive, and Microsoft Azure. Microsoft’s infrastructure is comprised of a vast portfolio of over 100 data centers, content distribution networks, edge computing nodes, one million servers, and fiber optic networks, serving more than one billion customers through its cloud platform around the world.
Microsoft is one of the leaders in the burgeoning data center market with customers ranging from the world’s largest companies and government agencies to individuals and small businesses. The company’s cloud platform, Microsoft Azure is created for building and managing services and applications through a vast global network of Microsoft-managed data centers.
Download related report for FREE: Global Enterprise Networking Market 2018-2022
Apple
We all know that Apple transformed the mobile devices and digital music over the years with its most-popular premium products iPod, iPhone, iPad, and iTunes. Nevertheless, the tech-giant along with smartphones market is rapidly expanding its data center infrastructure to power its present and future Internet services, including iCloud. Apple operates data center facilities on both coasts of the US. The company owns data centers in California, Nevada, North Carolina, and Oregon, as well as leases space from colocation providers.
Further, the company is looking to set up new data centers in Europe, and they also announced plans last year to build a data center in China in collaboration with a Chinese company. Apple also announced that it will be spending $10 billion on data centers over the next five years.
China Telecom
China Telecom is one of the world’s leading providers of integrated telecommunication services and the second largest network provider in China. The company grew rapidly over the years with the establishment of China Telecom Americas Corporation, China Telecom (Europe) Limited, and China Telecom (Hong Kong) International Limited. Today, China Telecom has subsidiaries in over 27 countries, along with 63 overseas PoPs, and owns over 9T capacities in international connectivity bandwidth. The company also has resources on 33 submarine cables.
As part of its expansion strategy, China Telecom is set to move into a new data center facility in Hong Kong, being built by London-based Global Switch. The project of $360 million could provide up to 75,000 square feet of gross space, making it one of the largest data center companies in the world.
Download related report for FREE: Data Center Market in Europe 2016-2020
China Unicom
Founded in 1994 as a GSM mobile operator, China Unicom has grown into one of the world’s largest data center companies and telecom providers and a leader in the growing Chinese cloud market. The company currently provides a wide range of services including data communication, GSM mobile network, IP telephony, and Internet services in China. China Unicom recently built two largest data centers, with a total area of more than 600,000 square meters and over 12,000 IT racks.
These hyperscale data centers are built to provide top-notch data center services and cloud computing solutions to enterprises, finance companies, domestic government agencies, and top internet companies. The company recently announced that it is planning to invest in a large number of edge data centers over the next few years, as part of a broader network refurbishment associated with the rollout of 5G services.
IBM
IBM, as one of the largest information technology and data center companies, has been significantly focusing on its cloud services and data center infrastructure lately. The cloud provider is significantly targeting companies that aim to modernize the traditional workloads. IBM has established 18 new data
centers in various countries around the world. At present, IBM has connectivity speeds of over 2,600Gbps between data centers and network PoPs. Also, IBM’s network has 2,500Gbps transit internet speeds.
IBM is aiming to increase its global data center network and as a result, the company is acquiring large data centers in the US, Europe, and Asia-Pacific. In Europe, IBM has launched data centers in London, and Frankfurt. In the US, the company is adding data centers in Dallas. The company is also establishing data centers in Sydney, Australia, and Tokyo, Japan.
Download related report for FREE: Global Data Center Construction Market 2018-2022
NTT Communications
NTT Communications is one of the leading providers of information and communication technology solutions and largest data center companies in Japan and worldwide. The company’s services for corporate clients include a wide range of solutions such as web communication, contact center, and CRM communication, broadband video communication, IP network/data transmission services, data centers services, and security solution outsourcing and server operation.
Their networks connect over 190 countries worldwide, with wide-ranging coverage in the Asia Pacific region, and a Layer-1 network delivering high-bandwidth, low-latency connectivity between Japan, Europe, and the US. The company has been successful in delivering state-of-the-art and highly secure data centers across the world, with many facilities situated in top business marketplaces.
Suggested Readings: The Top 6 Trending Data Center Innovations for 2018
Future of the Data Center Companies
Solving complex mathematical problems is a major challenge faced by industries across the world. Consequently, quantum computing is gaining immense traction among consumers across the world and is one of the major driving factors for the high-performance computing market. Quantum computing applies the laws of quantum mechanics to the computational facility. The developers are focusing on developing a quantum computer at its maximum capability to perform calculations that are faster than modern supercomputers. Further, these computers consume comparatively less electricity which gives them an advantage in the data center market.
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