Projections for data center construction need to be updated continuously and there appears to be no end in sight
Machine-to-machine server applications are feeding strong growth in data storage and artificial intelligence has been adding another potent layer to demand
Cisco’s 2020 Internet report (2018-2023) had estimated growth of devices and connections at 10% CAGR and the trend has been accelerating
- As of 2023, ‘machine-to-machine’ applications - known as 'Internet-of-Things' (IoT) such as smart meters, video surveillance, healthcare monitoring, transportation, and package or asset tracking - were estimated at 50% of total connections
- Smartphone connections come second at 23% of total
For 2023 – 2030, annual growth of data center construction has now gone from a conservative 7% (Delvens Market Research) to 10% (Prescient) or 15% CAGR (Goldman Sachs)
With exponential increase in data, there is broad consensus regarding data center growth potential, powered by drivers linked to social media, mobile, analytics and cloud streaming services
With technologies that generate and, simultaneously, consume massive amounts of data (IoT and machine learning), the trend can be expected to accelerate
With continuous deployment of advanced software and applications, the IT & telecom sector holds a dominant position in the market, putting Broadcom
Amongst industries involved in construction of data centers, this selection blends IT infrastructure comprising server, storage and network infrastructure with mechanical infrastructure, referring to cooling systems, power distribution, and ventilation in the facilities, all of which implies sharp increase in energy demand and storage capacity
The theme highlights key industrial segments – quality data management (efficient and secure), critical power access (uninterruptible), thermal management (cooling solutions) and monitoring – as factors of competitive advantage, with mid-sized and focused companies going toe-to-toe with the industrial giants such as Eaton, Schneider Electric or ABB, included in the selection
Not included in the theme, IT infrastructure providers HPE, Dell Technologies, and IBM have formed partnerships to deliver pre-installed IT infrastructure solutions for data centers
This theme complements recently published Data Centers - Exponential Demand Growth
Follow-up themes to be published shortly are
- Networks and Fiber Optics
- Cloud - Data Architecture Applications