Data centers are the backbone of business and consumer internet operations. The growth in data center market is aided by increased internet penetration by consumers for personal and business purposes through smartphones and high-speed broadband networks. The proliferation of new technologies such as cloud-based services, Internet of Things (IoT), and big data analytics will boost the need for operations and need for other services in the data center market.

Americas is the largest contributor to the global data center market.

The development of the BFSI, healthcare, government, and heavy industries will propel the demand in the global market.

Colocation, Cloud, and Managed Service Providers to Gain Popularity in the Global Market

The growing demand for data center services such as colocation, managed services, and cloud hosting services is gaining immense traction in the global market. In the recent times, various colocation providers have announced cloud-connectivity services to major cloud platforms such as AWS, Microsoft, Google, Oracle, and IBM. The service providers in the market are focusing on providing colocation, managed services, interconnection, and cloud connectivity solutions. The construction of colocations and modular data centers will transform the global market over the next few years. The integration of efficient cooling infrastructure, procurement of renewable power for their operations, installation of the rack with rack-level cooling solutions to support high density, and cloud connectivity are some of the major factors propelling the development of the global market. The operators are focusing on tapping edge market opportunities, providing higher bandwidth, and retention of existing customer base through the development of colocation projects in the global data center market.

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The emergence of Free Cooling in Data Centers

One of the most popular trends in the data center market is the advantage of adoption of free cooling solutions, which reduce energy consumption by data center cooling infrastructure. Site selection and benefits that includes land stability, power availability, free cooling options, tax incentives, are carrier availability play a significant role in the construction of facilities in the global market. The Brownfield data center development projects will continue to grow, thereby renovating old infrastructure building than starting a new project from scratch like in greenfield development projects. The data center market is also witnessing an increase the investment in new greenfield facilities in the Northern US and Canadian region. Additionally, the growing focus on developing facilities in the region that have high availability of water, especially the coastal region will witness construction that uses seawater to cool servers. Such developments will revolutionize the data center market and augment the demand worldwide.

Facilities to Adopt Automation and Monitoring Solutions

The increase in power consumption and dynamic control management over infrastructure operations is leading to the adoption of end-to-end monitoring of facilities in the data center market. In 2016, Google implemented DeepMind AI for end-to-end monitoring and automation of its facilities. This has resulted in 15% savings in its cooling cost and around 40% savings over the cooling consumption by cooling systems. The growing need for DCIM solutions will help automate and monitor facilities in the global market. Data center automation identifies the maintenance of infrastructure to avoid operational failure. Leading vendors such as Schneider Electric’s StruxureWare, Vertiv’s Trellis, and ABB’s Ability offers automation platforms in global data center market. Canada and Latin American countries are also identifying the potential benefit of using DCIM systems to monitor and automate their facilities overcoming potential future challenges.

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