For decades, data centers have used the same technology, depending on long-held preference. Despite installing high-rated costly next-gen gears, it is recognized that sticking with existing design and technology is not incorrect. Since the data center capacity planner’s primary objective is to provide 24×7 availability, dependability, and resilience.
In 2015, the cloud will be king, and companies will flock to it. Demand for IT as a service and cost-cutting have driven data centers to bid on the trending cloud. This widespread acceptance will drive transitional patterns, and IT departments will begin to adapt their processes to the cloud age, causing data centers to evolve in lockstep with the advancing technology.
What you need to know about data centers:
Next-Gen Data Centers
The data center will continuously transform from a conventional, virtualized, strict, and centralized IT architecture to a service-oriented, cost-effective internal cloud. The new data center will rely on internal customers to consume IT as a service, house mission-critical applications and data, and supplement capacity with external cloud computing. This change is a consequence of the competitive pressures on IT organizations by public cloud computing and the need to accommodate an increasingly mobile workforce.
Convergence Moves to the Macro-Level
Not only are the technical systems convergent, but so are the telecommunications and IT sectors, since voice and data services are increasingly used on the same device. More than half of the Data Center 2025 study participants anticipate at least half of telecommunications firms to include colocation facilities in their networks by 2025. This convergence will lead to more fantastic speech and data technology standardization, breaking down the traditional barriers between these two essential roles.
Data Center Market Trends You Should Be Following In 2021
According to Dell Technologies CEO Michael Dell, technology “resolved a complete societal, economic collapse” during the global COVID-19 epidemic by enabling people to work, study, and play from home. Data centers played a critical part in keeping the global economy from collapsing and continue to do so as the “new normal” of remote work and a digital financial system takes shape.
AWS, Microsoft, Google Spending And Expanding Like Never Before
The three public cloud brutes are investing billions of dollars each quarter in constructing and outfitting new hyperscale data global locations to expand their cloud services footprint. Indeed, Amazon, Microsoft, and Google now account for more than half of the world’s biggest data centers combined.
By the end of 2020, the number of large data centers operated by hyperscale providers such as Amazon Web Services, Microsoft, and Google will have increased to over 600, more than double the number in 2015. The COVID-19 pandemic has spurred excellent data center investment, led by Amazon Web Services, Microsoft, and Google, projected to reach $37 billion in the third quarter of 2020.
Microsoft unveiled one of the most ambitious data center growth plans in history, promising to build 50 to 100 new data centers each year, including a $1 billion investment in Malaysia’s several hyperscale data center regions.
The Takeaway: Throughout 2021, AWS, Google, and Microsoft will continue to invest billions in extending their market reach by entering new territories or areas with solid cloud and data service needs.
Data Center Spending Picks Back-Up, Will Hit $237 Billion
According to Gartner’s latest IT expenditure estimate, global data center systems revenue will reach $237 billion in 2021, up over 7% yearly. Due to the COVID-19 outbreak, many businesses concentrated on keeping the lights on and operating efficiently in 2020. This caused companies to neglect data center infrastructure and major IT initiatives. According to Gartner, the “transitory stop” on data center investment will expire by the end of 2021, with annual data center infrastructure spending projected to increase through 2024.
Nvidia To Become A Data Center Powerhouse
Nvidia introduced in April 2020 an Arm-based data center CPU for AI and HPC that it says would be ten times faster than AMD’s top EPYC CPUs, giving Nvidia complete control over server compute and acceleration and networking components. Grace, the following data center CPU, will compete with Intel and AMD’s x86 CPUs in early 2023.
Nvidia’s data center product roadmap includes GPUs, DPUs, and CPUs, with every two years an upgraded structure.
Enterprises Prefer Cloud Infrastructure Services over on-premises data centers
Globally, companies will spend $130 billion on cloud infrastructure services in 2021, surpassing the $90 billion spent on data center hardware. In 2021, corporate clients will place a premium on data center sustainability, increasing the standard for the whole industry. With the digital economy taking shape, investors are now contributing to the green energy revolution by creating more environmentally friendly information technology portfolios. Equinix and Digital Realty, two data center colocation giants, have recently raised money via green bonds, with others expected to follow suit.
AWS, Google, Microsoft Are Taking Over The Data Center Market
According to recent statistics from the Synergy Research Group, Amazon, Microsoft, and Google now account for more than half of the world’s foremost data centers as a rise of digital services.
According to recent Synergy Research Group statistics, the world’s three biggest public cloud providers have essentially taken over the hyperscale data center industry.
Amazon, Microsoft, and Google now own more than half of the world’s biggest data centers, as they continue to invest billions annually in constructing and extending their worldwide data center infrastructure to meet rising cloud service demand. As a result of the worldwide COVID-19 epidemic, AWS, Google, and Microsoft spent $37 billion on data centers in the third quarter.
By 2020, hyperscale companies like AWS, Microsoft, and Google will have almost 600 big data centers, double in 2015. Amazon and Google built the newest data centers last year, accounting for half of the total in 2020.
“Despite COVID-19 creating some logistical difficulties, 111 new hyperscale data centers launched in the past eight quarters,” said John Dinsdale, Chief Analyst at Synergy Research Group. In particular, cloud computing, SaaS, e-commerce, gaming, and video services develop rapidly.
Gartner Projects That IT Spending Will Increase by 6% to $3.9T in 2021.
The worldwide pandemic of COVID-19 has significantly impacted how companies and organizations of all kinds purchase and utilize online technologies, ranging from video conferencing and virtual business events to leisure and distance education. Cloud systems, especially public clouds, facilitated this transformation.
Enterprises are acquiring server, storage, and networking equipment fast for their public cloud infrastructure.
According to IDC, investment in public cloud infrastructure alone hit a staggering $13.3 billion in the third quarter of 2020, up 13% year over year. Dell Technologies, HPE, and Inspur are the industry leaders in cloud infrastructure sales, just as they are in the server, storage, and hyper-converged infrastructure industries.
“In addition to almost 600 operating data centers, we have insight into an additional 219 that are in different phases of planning or construction, which is excellent news for data center hardware suppliers and wholesale data center operators,” Dinsdale added.
Hyperscale data centers, compared to conventional data centers, typically house tens of thousands of servers and hardware alongside millions of virtual machines. Hyperscale data center design, power, and operate their products, focusing on infrastructure optimization and scale acceleration.
Geographically, the United States is home to almost 40% of the world’s most enormous cloud and internet data center locations. According to Synergy, China, Japan, Germany, the United Kingdom, and Australia are the next most popular areas, accounting for another 29% of the total.
Oracle, Alibaba, and Facebook are among the other major technology firms spending substantially on developing new hyperscale data centers.
That’s all, Folks! By 2021, worldwide investors will see data centers as one of the most significant opportunities to profit from the surge in demand for cloud services and remote work. Operators of data centers will spend in purchasing and developing more sustainable goods, ranging from liquid cooling to subsea data centers. It is critical to understand that there will be no trade-off between purchasing the most acceptable data center product and purchasing a more sustainable solution. It’s critical to remember that businesses like AWS, Google, and Microsoft do not construct every data center themselves; instead, they lease capacity and space from data center operators such as Digital Realty and Equinix. According to Synergy, about 70% of hyperscale data centers are in facilities leased from data center operators or owned by hyperscale operators’ clients.
