A recently developed Fact.MR study foresees the data center market to record a splendid 12.0% CAGR over the period of forecast, 2018 to 2028. Installation & construction services will continue to account for bulk share of the data center market, albeit growing at a slightly lower CAGR than consulting & integration services. Revenues from installation & construction data center are poised to exceed US$ 145,000 Mn by 2028-end.

The report envisages North America to reign supreme in the data center market, with Europe following the suit. Albeit Asia-Pacific excluding Japan (APEJ) stands at the third lucrative position for data center market, revenue growth in the region is foreseen to register a relatively higher rate through 2028.

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Data Center Market: Third-Party Providers to Observe an Upward Trend

With rising adoption of cloud technologies for supporting the internet economy, coupled with the acceleration of digital content-driven consumption, an uptake of the third-party data centers has been observed since the recent past. The trend falls in line with the growth of the cloud-managed service sector. As clouds are soaring in prominent markets, enterprises continue to introduce new software as a service (SaaS), and platform-as-a-service (PaaS), meanwhile focusing on reducing the cost and dependence on Infrastructure as a service (IaaS). This will further impact growth prospects of the data center market.

With corporations increasingly taking efforts to make innovations with new product launches, marketing initiatives, and business models, demand for a flexible infrastructure is on the rise. Most organizations are shifting their focus from managing their own infrastructures toward leveraging a service provider data center for shared and dedicated cloud offerings. This is further expected to result in the gradual retirement and consolidation of the existing data centers.

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Data Center Market: Changes in Operational Processes and IT Staff Shortage Confining Growth Prospects

Transformations in technology and data center network have meant that reorganizing and updating operational processes apropos of software and hardware has become imperative. Changes in operational processes have necessitated overall upgradation of the management process in organizations. This further entails challenges such as substantial implementation time, which in turn results in project delays against the backdrop of process re-engineering.

Proliferation of digitization and technological advancements in the data center market have propelled demand for skilled IT professionals for the management and handling of software-defined and connected services. However, shortage of IT staff in lucrative areas such as crisis management, operational efficiency, IoT and software-defined networking, Big Data, cloud computing, and mobility has led to varying uncertainties in solutions, This has further increased the probability of system errors or functional failures, thereby confining growth of the data center market.

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Data Center Market: International Regulations on Data Sovereignty Influencing Location Decisions of Stakeholders

Rapid evolutions in the international regulations on data sovereignty, which mandates data to be housed within the country where it is assessed, have been impacting data center location decisions of stakeholders. Domestic data centers aid data protection, while necessitating new investment, thereby enabling prominent data center operators and developers to rapidly expand their international reach. This further aids these operators to meet evolving demand, while helping the users to remain compliant with regulations.

Climate change is another factor affecting location strategies, as data center users evaluate their performance based on financial, environmental, and socially responsible perspectives. This, coupled with efforts of providers to curtail utility consumption through implementation of less resource-intensive powering and cooling strategies, will continue to impact growth of the data center market. Access to water and renewable energy sources have therefore become more important considerations for stakeholders in the data center market.

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