New report predicts growth in carbon neutral market
The carbon neutral data centre market is expected to grow by as much as US$5.96bn by the year 2025, a new report suggests.
The report, published January 2021 by Research and Markets, hints that the value of the market will rise from US$3.46bn to US$ 9.42bn over the next four years.
It is said that the rise is caused by “several government policies and environmental regulations”, such as the International Climate Agreement, which aim to reduce carbon emissions.
According to the report - which mainly focuses on carbon neutral data centre types and solutions, end-use industry, and government programs, trends and opportunities - ongoing cloud migration has also contributed to the growth of hyperscale data centre types.
It said that the colocation type data centre currently holds the second-largest share in the market, just behind the hardware segment, and that the ongoing trend in digitisation has allowed many start-ups to also grow.
This includes support from evolving technologies such as artificial intelligence (AI), the Internet of Things (IoT), and extended reality.
All data centres have hardware equipment and devices which are part of their operations, including power and cooling equipment, servers, storage and devices for networking.
From these devices, servers use almost half of the total data centre power consumption.
The report predicts that the power consumption of the cooling and power segment will reduce over the forecast period of 2021-2025, as a result of an increase in demand for efficient cooling systems.
A competitive landscape for the carbon neutral market has shown companies are starting to acquire strategies such as product launches and business expansions.
Other strategies adopted include joint ventures, business developments and partnerships and collaborations, with the latter being the most key player strategy in the market.
In August last year, data centre operator Equinix entered into a strategic partnership with tech giant Google, allowing enterprises to use Equinix’s services to connect more easily with Google Cloud.
Equinix: Digital leaders expect changes to working patterns
A global report released by Equinix has revealed that digital leaders expect long-term changes to the way people work.
As part of the report, the data infrastructure company surveyed 2,600 IT decision-makers from several different businesses spanning 26 countries in the Americas, Asia-Pacific and EMEA regions. The study also highlighted the biggest technology trends affecting global businesses and how the COVID-19 pandemic has impacted digital infrastructure plans.
Talking about companies’ expansion strategies, Claire Macland, Senior Vice President of Global Marketing at Equinix, said: “Many companies are now investing more in their digital infrastructure to enable them to embrace a hybrid working model and thrive in the new world of work we all find ourselves in.
“Despite headwinds in many sectors, many organizations are continuing to expand physically and virtually into new markets and regions around the world”, she said.
The report drew the following conclusions:
- 64% of the 2,600 digital leaders surveyed believed there will be “long-term changes to both how and where people will work in the future.
- 57% of global companies intend to expand into new regions despite the effects of the pandemic
- 51% of businesses worldwide say they have rearchitected their IT infrastructure so that it can meet the demands of remote and hybrid working. Digital transformation has also been accelerated due to an increase in businesses’ technology budgets.
How might digital transformation be affected post-pandemic?
COVID-19 has demanded that companies make several changes to the way that they operate, including digital transformation. According to the study, 47% of those surveyed reported that they have accelerated their digital transformation plans because of the Coronavirus pandemic. A further 42% of organisations said their budgets have increased to keep up with the growth of digital transformation.
Another change in adapting to the pandemic was to businesses’ IT strategies with six in 10 companies saying that it has been revised in response to the situation. 58% said they are looking to invest in technology to “improve agility’ post-COVID.
When asked about their priorities for their digital strategy, 80% of respondents said that digitising their infrastructure was of utmost importance, while 57% viewed interconnection as a ‘key facilitator’ of digital transformation.
"This increasing focus on digitization and expansion is one of the reasons why Equinix has continued to invest in its own growth. We completed 16 new expansions in 2020—our most active build year ever—and expect to continue to evolve Platform Equinix to support our customers as they continue on their digital transformation journey”, said Claire Macland.
Potential concerns disperse over expansion plans being halted by COVID-19
The study has also revealed that organisations’ previous concerns that the pandemic will negatively affect their business expansion plans have been lessened.
57% of businesses have said that they “still have plans” to expand into new regions and of that percentage, nearly two-thirds (63%) plan to do so virtually instead of investing in physical IT infrastructure.
The full Equinix report can be found here.