Industrial Automation Magazine India

Data Center market size is set to grow by USD 434.8 billion from 2024 To 2028

Published on : Monday 29-07-2024

Rise in adoption of multi-cloud and network upgrades to support 5G to boost the market growth – Technavio.

New York, July 24, 2024 – The global data center market size is estimated to grow by USD 434.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 14.52% during the forecast period. Rise in adoption of multi-cloud and network upgrades to support 5G is driving market growth, with a trend towards implementation of ai in data centers. However, cybersecurity issues pose a challenge. Key market players include 365 Data Centers, Alphabet Inc., Amazon.com Inc., Apple Inc., China Telecom Corp. Ltd., Cisco Systems Inc., CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Hewlett Packard Enterprise Co., Intel Corp., International Business Machines Corp., KDDI Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Salesforce Inc., SAP SE, and Verizon Communications Inc..

Data centers are enhancing energy efficiency through the application of Artificial Intelligence (AI). AI technology enables faster decision-making and optimisation of server, power, and cooling systems. Data center service providers use AI in automation software to eliminate human intervention, facilitating energy-efficient operations. AI also optimises cooling processes, allowing effective power usage and reducing downtime and human errors. AI monitors device performance in data centers, predicting potential failures and adjusting processes accordingly. Benefits of AI-based data center automation software include reduced infrastructure costs, operating costs, and deployment time. By 2028, advanced robots with AI and machine learning capabilities will increase cloud data center operating efficiency by over 30%. This trend will significantly contribute to the growth of the global data center market.

Data centers play a crucial role in storing and analysing data for businesses, e-commerce companies, and individuals. With the rise of personalised data and application performance, data center workloads continue to grow. Mobile data use and internet usage have surged, leading to increased storage requirements. Cloud data storage solutions like Amazon Web Services offer scalability and flexibility. Data security, backups, and internet bandwidth are top priorities. Managed hosting and colocation offer customised solutions for businesses. Big data and data analytics are driving innovation, with intelligent buildings, public cloud, and hyper-scale platforms leading the way. The Department of Energy focuses on green data centers. AI, ML, IoT, and IT infrastructure are key trends. Software testing solutions ensure application performance. Customers demand digitalisation, and businesses respond with innovative data center solutions.

Market Challenges

Data is a valuable asset for businesses, fueling revenue opportunities through trend analysis and informed decision-making. However, securing sensitive data, including customer information, is a significant concern. Cyberattacks, particularly those targeting cloud services and IoT solutions, pose a growing threat. Non-compliance with data protection regulations can lead to hefty penalties. The increase in DDoS attacks, which disrupt business continuity, is a major challenge. These factors may hinder the expansion of the global data center market. Enterprise server estates are at risk of being hacked, potentially compromising data and shutting down businesses. Strict government regulations on citizen data security add to the complexity for cloud service providers.

Data Centers face numerous challenges in today's digital world. Artificial Intelligence and Machine Learning require massive computing power, driving the need for advanced IT infrastructure. The Internet of Things (IoT) and Cloud Computing increase the demand for real-time data processing and scalability. Green Data Centers are essential for businesses seeking cost savings and sustainability. The Department of Energy and Enterprise Engineering Solutions focus on energy efficiency. Software Testing Help ensures data security and reliability. Customers, including individuals and B2B enterprises, demand faster response times and flexibility. Digitalisation and the Digital Economy drive the exponential trend towards more data creation and usage. Challenges include latency, autonomous vehicles, smart cities, and decentralised Data Centers. Local special circumstances, data sovereignty regulations, and macroeconomic factors also impact Data Center strategies. Businesses must adapt to the S-curve function of digital transformation, balancing hardware-related expenses with the benefits of cloud technology and data center systems. Macroeconomic factors like exchange rates, business leaders, and competitors influence decisions. Data loss and speed are critical concerns for end-users. Online retail and other industries require customised solutions. National statistical offices track the level of digitisation, providing valuable insights. In summary, Data Centers must address these challenges to meet the evolving needs of the digital age. 

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