Data Center Research: Global Data Center Market Growth

New data center research found that the global market is currently shifting due to increasing requirements regarding macro data growth trends. In addition, clients are becoming more discerning and sophisticated with their data center purchase strategies.

The research report by DLA Piper and Data Centre Solutions noted that 69 percent of survey participants are confident about the considerable growth being experienced in the global data center market, which is poised to continue this year. The report also reveals this growth is highly fragmented into certain geographic regions.

Pockets of Market Growth
There are several areas in which the data center services market is focused as a result of regional customer demands and local requirements. For example, a considerable number of operators have Virginia data centers in Ashburn, an area now known as Data Center Alley. According to RagingWire marketing vice president Jim Leach, Loudoun County boasts more than 40 data centers, which support local and global demands for online services. As much as 70 percent of the world’s total Internet traffic passes through facilities in Data Center Alley, and more structures are cropping up.

The global market trends report pointed out that a number of factors can create such pockets of concentrated service providers, including market maturity, client needs, investor activity and the state of an area’s economy. For this reason, individual approaches are required to ensure success in a given region.

“It is clear that data center customers and suppliers … understand the local market differences, but recognize the importance of data center infrastructure being core to their own/their customer’ business; and can reposition data center strategy as a central enabler to digital growth, will be the companies that flourish over the next few years,” said Anthony Day, DLA Piper technology and sourcing legal director.

The report’s findings are evident in other parts of the world as well. According to DCD Intelligence, the Asia Pacific data center market is largely concentrated in China, where 30 percent of the area’s facility space is located. The China data center market also shows the highest rate of growth in the industry.

“The rate of growth in white space across the region has slowed bringing the region more in line with other mature data center markets,” said Nick Parfitt, DCD Intelligence lead analyst. “However, China and India are still seeing double digit growth albeit at a slower level than the previous year.”

Within the Latin American data center market, Brazil is the leader. DCD Intelligence also found that 40 percent of the local sector’s space resides in this country, but the regional market is growing in Peru and Chile as well.

The DLA Piper report noted that much of the global data center market growth will occur with specialized colocation data center service providers. Additionally, analysts predict a considerable expansion will occur this year in the United Kingdom and the U.S. due to private equity-backed projects.

Importance of Data Center Sustainability, Infrastructure
A key element for success, no matter the regional market, is a strong facility infrastructure. The DLA Piper survey found that infrastructure improvements have become somewhat of an “arms race” for technology organizations.

“Greener, more efficient facilities will also act as a catalyst for expansion in the sector and those with recognized sustainability or clean tech accreditation will significantly increase the appeal of a data center facility,” the DLA Piper report stated.

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