IT leaders prepare for higher data centre investments

In the midst of a dynamic and fast-evolving landscape of digital threats and regulatory necessities, a notable 61% of IT decision-makers are planning to ramp up their data centre investments
As part of Telehouse’s Vision 2030 report, the company has revealed that IT decision-makers plan to increase their data centre investments moving forward

A new study conducted by leading colocation and ICT organisation, Telehouse, has revealed that 61% of IT decision-makers are preparing for higher investments into data centres.

The company highlights that these investment decisions will be made in the coming decade as a result of tightening regulatory standards and increasing security threats. Security and compliance concerns are also driving an upwards trend in data centre investments.

Telehouse’s research ultimately highlights the pressing issues facing businesses today, with sharp increases in cyber threats. It is therefore a crucial time for enterprises to transition away from traditional digital infrastructures.

Ever-growing requirements to bolster security measures

This research is part of Telehouse’s Vision 2030 report, where 250 UK IT decision-makers were surveyed on digital infrastructure challenges and opportunities over the next decade.

You can read Data Centre Magazine’s previous article on the company’s digital findings here.

Telehouse has anticipated that the majority of businesses will make changes to their IT infrastructure in the coming years. In the face of rapidly increasing data volumes, relentless cyber threats and a skills shortage, the company has highlighted that 95% of businesses surveyed perceive their digital infrastructure as a risk to their current operations.

Some of the key findings from this latest chapter include:
  • 30% believing that upholding security and ensuring regulatory compliance will be their biggest challenge by 2030.
  • The need for fortified security and stringent compliance is pushing over half (54%) of IT decision-makers towards colocation services - a robust 21% surge since research conducted by Telehouse in 2020.
  • A third (33%) of IT decision-makers identify cyber threats as the paramount concern affecting network uptime.

In the midst of a dynamic and fast-evolving landscape of digital threats and regulatory necessities, a notable 61% of IT decision-makers are planning to ramp up their data centre investment in the coming decade. This strategic shift is largely due to the mounting requirements to bolster security measures and stay compliant with tightening regulatory standards.

Cybersecurity and regulatory compliance fast becoming key challenges for data centre leaders

The report suggests that emerging technologies such as AI and the Internet of Things (IoT) are ultimately creating newer and broader vulnerabilities, which are turning cybersecurity into more of a priority. 

Notably, a third (33%) of IT decision-makers surveyed identify cyber threats as the paramount concern affecting network uptime. Looking forward to the next decade, 30% believe that upholding security and ensuring regulatory compliance will be their biggest challenge by 2030.

Escalating security concerns and regulations are forcing businesses to re-evaluate IT deployment strategies. The need for fortified security and stringent compliance is pushing 54% of IT decision-makers towards colocation services, according to Telehouse. This marks a robust 21% surge since Telehouse's 'Vision 2030' research in 2020. Three years ago, only 33% of IT leaders leveraged colocation to bolster security and address legislative mandates.

Companies also perceive cost-effectiveness as a driver behind transitioning from on-premises models to colocation services. By 2030, Telehouse expects a downward trend in on-prem deployment, declining from 32% to 26%.

Mark Pestridge, Executive Vice President & General Manager of Telehouse Europe, says: “Today’s businesses are facing a pressing need to evolve and transition away from traditional digital infrastructures. The increasing threats in the cyber realm are a clear indicator of the financial and reputational risks at stake. This underscores the urgency to shift from potentially vulnerable on-prem setups to more robust data centre security solutions. 

“As firms embrace technologies like AI, the ensuing demand for computational power and storage capacity will surge, making colocation data centres a logical and future-ready choice, both now and beyond 2030.”

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