Market Trends of Dallas Data Center Industry
Cloud Computing in BFSI is anticipated to hold a significant share
- The data center model has changed thanks to cloud computing. Traditional data centers, which run on hardware and require a lot of room, are no longer practical. As a result of the commercialization of storage, computing, and network resources by cloud providers, hyperscale cloud-based data centers have emerged. These public cloud service providers directly own and manage these data centers.
- They can offer their services for much less money than on-premise data centers. Everything is controlled digitally in data centers that utilize the cloud. Cloud computing has completely transformed how data centers are managed nowadays. Although cloud computing has many benefits in data centers, the three most important are agility, efficiency, and scalability.
- Data centers are the foundational infrastructure for cloud-based digital technologies, supporting anything from video streaming and online gaming to enterprise applications for remote and in-office work, 5G networks, and Internet-of-Things networks. Switch Inc., a Dallas-based operator of data centers, was acquired by Boca Raton, Florida-based DigitalBridge Group Inc., and investment services provider IFM Investors for $11 billion in December 2022.
- A data center facility in Dallas with 18.8 acres of land and a 75,000-square-foot current data center that is 100% leased to a technology company was purchased by managed hosting provider VPLS in August 2022. At the facility, which can support up to 16 MWs of power and now supports 2.5 MWs, VPLS intends to build more data center space.
- Despite a general deal-making downturn, private equity companies purchased data centers in almost record numbers last year to meet the rising demand for cloud computing and data storage. In March of last year, KKR & Co., a New York-based private-equity and infrastructure investment firm Global Infrastructure Partners, closed a $15 billion acquisition of data center operator CyrusOne Inc.
Understand The Key Trends Shaping This Market
Download PDF
Rising Adoption of Hyperscale Data Centers
- The rising adoption of hyperscale data centers is a significant driver of the data center market. Hyperscale data centers are large-scale facilities designed to support the massive amounts of data processing and storage required by modern businesses and organizations.
- For instance, in June 2022, the Aspen Mountain Hyperscale Data Center complex, the world's first sustainable hyperscale data center development, will be a carbon-negative, multi-business environment thanks to 100% heat reuse, according to Wyoming Hyperscale White Box. The 100% liquid-cooled, technology-neutral information technology equipment (ITE) will be used across the 120 MW master-planned campus, which will also run entirely on renewable energy and require no refrigerant or industrial water. The project's 30-MW initial phase is being built, and commissioning is scheduled to start in 2023.
- The adoption of hyperscale data centers is driven by the increasing demand for cloud-based services and applications and the growth of big data, artificial intelligence, and the Internet of Things (IoT). These technologies require vast amounts of data processing and storage, which large-scale data centers can only provide.
- AWS has filed publicly to erect a new facility outside of Dallas in DeSoto, Texas. Work on the 30,000 square-foot (2,790 square meters) data center is expected to start early in 2019 with a target completion date of 2024. The building is referred to as the Ezell Drive Campus, and reports claim that HSK is responsible for its design.
- These data centers are typically owned and operated by cloud service providers such as Amazon Web Services, Microsoft Azure, and Google Cloud, as well as large enterprise companies like Facebook and Apple. Hyperscale data centers are characterized by their massive scale, with some facilities spanning over a million square feet and containing tens of thousands of servers.
