Introduction
The data centre market is evolving at an unprecedented pace, driven by surging data demands, technological advancements, and a growing need for sustainability.
As market leaders in data centre migrations and professional services, we constantly need to be aware of the changing and emerging landscape, so we wanted to look at some of the areas that are impacting the sector.
In this blog, we will explore the latest trends shaping the data centre industry, with a focus on key developments in secondary markets, the rise of hyperscale data centres, the role of smaller-scale data centres, and the growth of the data centre market in the UK.
1. Data Centre Growth in Secondary Markets
The rapid increase in data consumption and creation, fuelled by personal and household devices, has led to an expansion of data centres into secondary markets. Major regions face constraints such as power shortages and limited land availability, prompting hyperscalers like Facebook and Microsoft to invest in these secondary markets.
Cities outside traditional data centre hubs are luring these tech giants with incentives to build in their locations, which, in turn, can support other infrastructure projects.
However, secondary markets may have lower latency and fibre connectivity, making it essential for application providers to decide where and how major data centre operators should build.
2. Hyperscale Data Centres Dominate
Hyperscale data centres, designed to handle vast numbers of servers with automation and modular components, have become the backbone of the data centre market. Companies like Amazon, Microsoft, Alphabet, Alibaba, and Facebook dominate this segment, and it is projected to grow at a steady rate despite economic challenges.
The trend is shifting towards self-owned data centres for vendor reduction, customisation, and access to renewable energy. Prefabricated, modular designs are becoming the norm for efficiency, and colocation providers play a pivotal role in standardisation and rapid deployment.
3. Smaller-Scale Data Centres: Supporting Low Latency
The proliferation of big data, IoT, VR, and emerging technologies emphasises the importance of low latency in data centre management. Regional data centres, positioned closer to data sources or end-users, are gaining prominence. This year we’ve seen these smaller-scale data centres play a critical role in the development of 5G services.
4. EU Secondary Market Growth
Secondary markets across Europe, particularly in the Nordic and Mediterranean regions, are experiencing growth. Factors such as renewable power availability, affordable land, and proximity to cable landing stations connecting Europe to other markets make these regions attractive to investors. Cloud providers are expanding their availability zones and creating new data centre clusters.
5. Current Market Landscape
The COVID-19 pandemic accelerated digitalisation, boosting the demand for data centres. As data volumes increase, artificial intelligence and machine learning are becoming essential for data interpretation. Approximately 70% of data centres are leased from third-party operators, highlighting the importance of data centre services.
Additionally, concerns about rising fuel costs and inflation are affecting various sectors, making energy efficiency a priority for data centres. By 2025, 75% of enterprise-generated data is expected to be processed outside traditional data centres or clouds.
6. Future Market Trends in Data Centres
A) Transition to Renewable Energy: Data centres are increasingly shifting away from fossil fuels in favour of renewable alternatives. Energy security concerns have accelerated this shift, making data centres more self-sustaining through hybrid models and decentralised power sources like solar, wind, nuclear, and hydropower.
B) Innovative Cooling Methods: The growing adoption of data-heavy technologies like AI and IoT are bringing about innovative cooling methods. Liquid cooling and phase-change cooling are emerging as effective solutions to manage the heat generated by high-power density racks.
C) More Data, More Multi-Cloud Deployments: Data, created everywhere, is driving multi-cloud deployments. Businesses require highly connected, geographically diverse platforms to access and manage their data efficiently.
7. Data Centre Growth and Investment in the UK
High costs and limited space in the South East are pushing investors toward more affordable areas.
IT infrastructure, including servers and storage, is a key driver of growth as businesses adapt to evolving technology trends.
Tech resellers play a crucial role in providing reliable IT infrastructure solutions to end-users. They offer expertise and access to leading manufacturers, ensuring businesses have the latest and most suitable products for their needs.
Conclusion
The data centre market is undergoing a transformation driven by increased data demands, technological advancements, and sustainability considerations. Secondary markets are on the rise, hyperscale data centres dominate, and smaller-scale data centres are essential for low-latency services. Europe is witnessing growth in secondary markets, and the UK data centre market continues to thrive.
As technology evolves, data centres will continue to adapt and innovate, paving the way for a data-driven future while addressing sustainability challenges. The path ahead includes a transition to renewable energy, innovative cooling solutions, and the facilitation of multi-cloud deployments to meet the ever-growing demand for data services, and Technimove will have its finger on the pulse with each emerging trend or innovation.
The data centre industry remains at the forefront of the digital economy, shaping our technological landscape for years to come, and we’re proud to be specialist and market-leaders. We’re ready to help you, so let’s start with a conversation.