Ongoing rise in the construction of green data centers to reflect positively on the global data center market, says Technavio

Renewable energy


Data center: Key market research findings

  • The Americas dominate the market geographically
  • Growing use of big data analytics drives market growth
  • Key vendors – AWS, Google, Equinix, Digital Realty, and Microsoft

Technavio’s market research analysts predict the global data center market to grow at a CAGR of around 11% between 2016 and 2020. The growth of this market can be accredited to the increased use of big data analytics across the globe. The adoption of big data analytics among enterprises boosts sales, increases efficiency, improves operations, customer service, and risk management. It helps enterprises to gain a competitive advantage in the market. During 2015, the Americas dominated the global data center market by occupying more than 46% of the overall market space. The presence of many Fortune 500 companies such as Google, Microsoft, Facebook, Apple, and AWS and data center infrastructure vendors such as Dell, HP, and IBM in the region is expected to fuel growth in the data center market in the Americas during the forecast period.

The new market research report from Technavio presents a breakdown and analysis of the data center segments based on the IT infrastructure.

“The market is currently witnessing an increase in the construction of green data centers. These facilities help in the operation of energy efficient IT, power, and cooling infrastructure; thus, reducing electricity consumption and carbon footprint. Methodologies such as free cooling, use of renewables, consolidation, and waste recycling are implemented in green data centers for improved performance. Companies like Google, AWS, Microsoft, and Facebook operate green data center facilities,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.

Servers help in processing a user’s request in the application, including the transfer of data. Their operation is dependent on hardware reliability and durability and comprises of dual power supplies, RAID disk system, and an error-correcting code (ECC) memory that is tested for operations by vendors. Servers are powered up, configured, and rebooted remotely using a server management software. Servers are also virtualized in modern data centers to increase the utilization of computing resources. This segment of the market is expected to grow at a CAGR of around 9% over the next four years.

The key vendors in the global green data center market include AWS, Google, Equinix, Digital Realty, and Microsoft. The market is highly competitive as the major players compete in terms of customer base and the need for high computation power. Intense competition prevails in the market, where several enterprises are trying to have the most effective and efficient data centers for their businesses to sustain themselves in the intensely competitive environment. Several growing enterprises prefer the construction of data center facilities instead of being dependent on managed infrastructure solutions as it will help them to gain a competitive edge over their peers.

A more detailed analysis is available in the Technavio report, Global Data Center Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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