Mega Data Centre Market - Forecasts from 2024 to 2029

The mega data center market is estimated to grow at a CAGR of 5.21% during the forecast period.

A data center is an office made from arranged PCs, stockpiling frameworks, and figuring foundations that associations use to gather, cycle, store, and disperse a lot of data. Data centers are critical business assets that house large quantities of sensitive information, both for their own purposes and for the needs of their customers. They vary in size from small server rooms to groups of geographically distributed buildings, however, the similarities are also there like: they deploy the latest advancements in data center networking, computing, and storage technologies. Gathering all the resources in a data center enables the organization to centralize IT and data processing employees, contractors, and vendors, protect proprietary systems and data, apply information security controls to proprietary systems and data, and ensure business continuity in the event of a disaster. The explosion in demand for data centers has attracted the attention of investors of all types, including growth capital, buyout, real estate, and infrastructure investors.

Introduction:

The mega data center market deals with the development, construction, and operation of large-scale data centers that house networked computers, storage systems, and computing infrastructure. These facilities are used by organizations to assemble, store, process, and disseminate large amounts of data. The market is segmented by solutions, including storage, networking, servers, security, and other solutions, and by end-users, including BFSI, telecom and IT, government, and others. Data centers are critical assets for businesses, as they rely heavily on the applications, services, and data contained within them for everyday operations. The demand for data centers has increased rapidly in recent years, driven by changing work habits during the pandemic and the growth of cloud-based technologies. However, the market faces challenges such as a worldwide shortage of available power, which inhibits growth prospects.

Drivers:

• Expanding request: The requirement for server farms has taken off, filled by remote work and the development of fast streaming. In the US market alone, demand is expected to skyrocket.
• Advancements in technology: With the progress made by IoT and AI, the target of control changed from information to physical entity, and there arose the need to process large volumes of data instantaneously. This has led to the development of more advanced and sophisticated data center infrastructure.
• Energy consumption: Energy usage associated with running AI number-crunching is fast becoming a key driver of rising data center bills. This has led to a focus on energy efficiency and the development of more sustainable data center solutions.
• Connectivity: Mega data centers are a critical component in the digital economy, and connectivity is key to their success. By connecting directly with other data centers and cloud services, mega data centers can improve performance and reduce communication line costs.

Products offered by key companies:

• Cisco's data center solutions help businesses manage their data and applications more efficiently and securely. Cisco's networking solutions provide a foundation for reliable and secure network traffic, while its compute and storage solutions offer flexible and scalable options.
• Dell provides a comprehensive suite of data center solutions that help businesses of all sizes build and manage scalable, reliable, and secure data centers. Dell's data center solutions include servers, storage, networking, and hyper-converged infrastructure.
• Fujitsu's data center solutions help businesses of all sizes build scalable, secure, and reliable data centers. Fujitsu offers a comprehensive suite of solutions, including data center servers, storage, networking, and management. Fujitsu's solutions are designed to meet the unique needs of each business.

Prominent growth in the storage segment within the mega data center market:

The storage segment of the mega data center market is experiencing significant growth due to the increasing demand for data storage, technological advancements, efficiency and cost savings, and the collaboration and innovation efforts of key players in the industry. The explosion in data generation, fuelled by remote work, high-speed streaming, and cloud-based technologies, has led to a surge in the need for data storage. The development of advanced storage technologies, such as cloud storage, solid-state drives (SSDs), and software-defined storage, has contributed to the growth of the storage segment. These solutions offer higher performance, scalability, and flexibility, making them ideal for mega data centers that handle massive amounts of data. Storage solutions that provide efficient data management, data deduplication, and compression capabilities have become essential for organizations looking to optimize their storage infrastructure and reduce costs.

The Asia Pacific region is expected to hold a significant share of the mega data center market:

The Asia Pacific region is expected to hold a significant share of the mega data center market due to its exponential growth, opportunities for businesses, headroom for growth, and distinct market segments. The region's data center market is experiencing exponential growth, driven by increasing demand for data storage, cloud computing, and internet penetration. The growth of the market offers immense opportunities for businesses and economies in the region. Data centers across the Asia Pacific are growing in scale, and new markets are being evaluated for expansion as operators anticipate increased demand. However, suitable land parcels are becoming harder to find in mature markets, which may pose a challenge to growth. The Asia-Pacific data center market consists of two distinct segments: regional markets, such as Hong Kong and Singapore, and global markets, such as Japan and Australia.

Key developments:

• In May 2023, Amazon Web Services (AWS) launched a new data center in Chile. This is AWS's first data center region in South America, and it will provide cloud computing services to customers in the region with low latency and high performance.
• In May 2022, With the launch of the principal data center, NTT Ltd. in India declared the launch of its new hyperscale data center site in Mumbai. NTT currently has 12 data center areas across the country, adding up to more than 2.5 million square feet and 220 MW of office power, further hardening its situation as the business chief in India.

Segments:

By Solutions

• Storage
• Networking
• Server
• Security
• Other Solutions

By End User

• BFSI
• Telecom and IT
• Government
• Media and Entertainment
• Others

By Services

• System Integration
• Monitoring Services
• Professional Services

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others