APAC will be the world’s largest data centre market by 2025
A new report from industry analyst firm predicts that global investment in the data centre industry will almost double over the next few years as industry spending expands from $244.74bn in 2019 to $432.14 by 2025, at a CAGR of 9.9%.
While North America currently leads the world in terms of annual data centre investment and maturity, by 2025, a number of factors are expected to push of the global market. North America will slip into second place, with EMEA coming in third.
Increased adoption of IoT technologies, as well as the widening use of Big Data applications and the global 5G rollout will be the primary drivers behind this growth trajectory, as well as sweeping expansions of digital economies in emerging markets.
First & Sullivan’s report points specifically to developing asian markets like and which it notes are still in a relatively “nascent stage” compared to more mature data centre regions like the US and the Nordics.
Construction in these markets is also “in its infancy”, notes the report, and the two factors combined point towards these developing markets exhibiting huge growth over the coming years.
"The move from enterprise to cloud and colocation data centres will gain momentum because companies can reduce capital and operational costs by avoiding investments in hardware or software infrastructure and reducing maintenance and space requirements," said Manoj Shankar, a research analyst at Frost & Sullivan.
"Additionally, 5G will move processing closer to the point of data collection, leading to increased deployment of micro and edge data centres and driving investments in new and next-generation data centre technologies."
Advances in edge computing, AI and 5G will drive increased data centre activity while creating a number of new opportunities for operators in the space, with innovations like connected homes, AI, game streaming, autonomous vehicles and mixed reality all propelling edge data centre adoption to new highs. At the same time, the demand for high performance computing (HPC) infrastructure will also continue to grow as increasingly powerful AI is required to handle larger and larger datasets.
Shankar added, "Onsite cloud data centres will become crucial as companies will require critical data to be kept in-house or at a nearby location, thereby lessening the security risks such as data theft. Further, given the high demand for modular data centres and competitive pressures, modular data centre manufacturers need to innovate in this space and come up with advanced concepts that allow additional flexibility and modularity."
Schneider Electric reveals new IT Innovation report
Schneider Electric has released a new IT innovations report titled “Digital Economy and Climate Impact”, with the aim of gaining an understanding of how digitised and smart applications will be powered in the future. The company says that the report predicts that IT sector-related electricity demand is expected to increase by almost 50% by 2030.
Despite this, the report also shows that emissions would not increase by more than 26% by the same year, following the decarbonisation of the electricity system. In an attempt to reduce this rise in emissions the Schneider Electric TM Sustainability Research Institute recommends continued efforts in achieving efficiencies on the IT and energy sides at both the component and system levels.
The report highlights how the rise of edge computing technologies require a “specific focus” due to these systems being less efficient than hyperscale data centres. “When the world locked down, it also logged on and internet traffic soared,” said Pankaj Sharma, EVP, Secure Power, Schneider Electric.
“It’s misleading to assume that digital activity will inevitably result in a deeply problematic increase in CO2 emissions. The analysis from the Schneider Electric Sustainability Institute puts to rest many of the worst-case scenario claims predicting IT-related electricity use will double every five years. That said, as an industry, we must remain vigilant in finding new sources of sustainability gains while ensuring resiliency as digital keeps life moving forward”, he added.
As well as the release of the report, Schneider Electric also announced several updates to its EcoStruxure IT data center infrastructure management software, Galaxy VL 3-phase uninterruptable power supply (UPS), introducing an industry-leading single-phase UPS, the APC™ Smart-UPS™ Ultra. All introductions are designed to advance the industry forward in meeting sustainability goals while increasing the resiliency of IT and data centre infrastructure, the company said.
Managing hybrid data center and edge IT environments
Also showcased in Schneider Electric’s report are the increasing demands on digital consumption. According to the company, these create a more complex hybrid environment inclusive of enterprise, cloud, and edge data centres. Addressing the unique management challenges of a hybrid IT environment, Schneider Electric has announced updates to its EcoStruxure IT software to increase efficiency and resiliency, including:
- Increased remote management capabilities: New granular remote device configuration features enable users to change configurations on one or more devices – including the new Galaxy VL and APC Smart-UPS Ultra single-phase UPS units – from one centralised platform with EcoStruxure IT Expert. This update, combined with previously released software insights on device security health, enables the user to identify faulty devices or configurations and address them in a matter of clicks, keeping their hybrid IT environment secure.
- Improved environmental monitoring: Environmental monitoring systems ensure users have eyes and ears on data centre and IT deployments from anywhere, anytime. With this update, users can push mass configurations remotely for NetBotz cameras 750 and 755 quickly and efficiently increasing security across the critical infrastructure.
- Enhanced remote capacity modeling and planning: With EcoStruxure IT Advisor’s new capabilities, users can remotely compare an unlimited number of racks and easily identify available capacity, view what assets are deployed and their dependencies.
Sharma concluded: “Schneider Electric has been focused on sustainability for the past 15 years and was recently named the most sustainable corporation in the world. We have embraced the mindset that future innovation will deliver better efficiency across the broader connectivity landscape. By making smart intentional choices, our industry can help mitigate how much electricity and emissions result from the rising appetite for digital technologies”.