Data Center Market To Generate $602.76 Billion Revenue by 2030
- Published: March 2023
The data center market size is expected to advance at a CAGR of 10.9% during 2022–2030, to reach USD 602.76 billion by 2030. This is ascribed to the increasing adoption of hyperscale data management centers and rising awareness of the cloud services provided by them.
The rising demand for data centers is attributed to the rapid digitization, growing remote working culture, and rising adoption of IoT and OTT services.
Major Initiatives Taken by Government to Promote Digital Economy and Connectivity Infrastructure
There are several government initiatives that are playing a crucial role in the growth of the market. For instance,
- In July 2021, the U.K. government announced proposals to boost competition in the digital sector, in order to advance technologies and protect consumers’ data.
- In February 2021, the Malaysian government announced plans to spend up to RM 56 billion on offering faster to more residents, as part of a decade-long economy digitization plan.
Product Launches Are Key Trend
Due to the various advantages of data centers, such as cost reduction, increased production, and enhanced security, their construction is picking up across the world. Therefore, major companies are launching different products for such facilities, to enhance their market position. For instance, in November 2022, Airedale International Air Conditioning Limited launched a cooling system optimizer solution that enhance the performance of chilled-water cooling systems in large data centers. The solution has been developed in response to the struggle of operators in correctly optimizing variable-flow chilled-water systems with traditional building management systems (BMS).
Similarly, in October 2021, Vertiv Holdings Co. expanded its UPS portfolio with the launch of single-phase UPSs with Li-ion batteries. With capacities of 1,500–3,000 Volt-Amperes in the rack-mount convertible and tower designs, the efficient Vertiv Edge is available across Europe, the Middle East, and Africa. Similarly, in June 2021, Socomec launched the NETYS RT single-phase superior UPS, which is available from 5 to 11 kVA. It is a resilient and compact flexible power backup solution for network service providers, edge data centers, hosting providers, and other entities.
Likewise, in February 2023, Volvo Penta expanded its genset range with the introduction of the D17, which delivers a high power-to-weight ratio despite being only as big as the D16.
APAC Is Expected To Witness Fastest Growth in Coming Years
The fastest growth of APAC over the forecast period can be majorly attributed to the rising demand for data centers on account of the growing utilization of cloud services and increasing digitization in the region.
Moreover, the advancements in digital technologies, rising IoT and AI investments, and growing broadband and smartphone penetration are resulting in the increasing data generation in the region. In addition, the surge in data consumption is fueled by the government initiatives, including smart city development, to strengthen the digital ecosystem. Further, APAC is home to around 2.9 billion internet users. All these factors are resulting in a high volume of data generation and consumption, which, in turn, are driving the demand for data storage and servers, thereby boosting the growth of the data center market in the region.
Furthermore, Japan is seeing high-paced growth in the market as many large-scale projects have either entered the conduction stage or are being designed. While other APAC countries offer electricity at lower rates, Japan has one of the most-stable grids in the world. This, combined with the low security risk to such infrastructure, has made the country an attractive market for data center solution providers, operators, and clients.
South Korea is also internationally recognized for its advanced technologies, and it is one of the key data center investment and construction locations in Northeast Asia. Seoul and Gyeonggi remain advantageous locations due to their easy accessibility and advanced infrastructure.
The most-significant data center market players are Alphabet Inc., IBM Corporation, Eaton Corporation plc, Schneider Electric SE, General Electric Company, Carrier Global Corporation, Siemens AG, LG Electronics Inc., Fujitsu Limited, Mitsubishi Electric Corporation.