Growing demand for Tier 3 data centers among several industries, is projected to accelerate the demand for data center construction market
The global data center construction market accounted for US$ 45,107.9 Mn in 2018 and is expected to grow at a CAGR of 8.4% over the forecast period 2019–2027, to account for US$ 89,961.1 Mn in 2027. The growth of data center construction is also highly influenced by the partnership between government and enterprises directed towards the reduction of carbon footprints. Data centers are now becoming key assets contributing to the enhancement of a country’s economy, and thus, government all across the globe are supporting and offering services for both local as well as global enterprises.
The technology application gathered pace in the early part of this decade with advancements in the internet infrastructures & speed, as well as increasing smartphones and internet penetration among the users. Increasing adoption of cloud services, rising data traffic and demand for cloud equipment is primarily driving the market for data center construction. Since 2014, more than 50 percent of the workload is processed in the cloud platforms. Companies are making significant investments w.r.t. time and resources in building private cloud platforms. The setting of private cloud will significantly reduce enterprise dependence on public cloud services thereby avoiding the security and compliance risk associated with the later. Data centers offer various benefits to the IT industry, such as speed of deployment, waste and energy efficiency and most important is scalability. Thus, the IT industry is heavily relying on the data centers for keeping pace in the highly competitive data center construction market.
Data centers are of vital importance for BFSI industry, as it helps in providing the customer with advanced banking services namely mobile banking, application-based services, mobile browsers, and SMS based services, and need data center service providers that can provide security, compliance, flexibility, and scaling options. Shifting trend towards digitization, rising adoption of cloud-related services and increasing adoption of analytics in BFSI sector are some of the factor contributing to the need to store and manage a large amount of data thereby driving the adoption of the data center in BFSI sector. With consumers moving online, retail banks are increasing their investments in digitizing their operations, to make themselves more adaptable to the online environment. The trend has already started from filling online forms to delivering the statements in a digital format. This will require the banks to process and store a large amount of data thus making them prone to seek data center services.
Furthermore, several initiatives to propel the data centre construction market has undertaken by varied players. For instance, in 2018, Fujitsu Limited Announced Next Generation Quantum-Inspired Digital Annealer Service. With this new service, servers are supporting the second generation of Digital Annealer technology which is installed across customer datacenter.