Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 45.3 Thousand MW |
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Market Volume (2029) | 71.98 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 9.70 % |
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Largest Share by Region | North America |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Data Center Market Analysis
The Data Center Market size is estimated at 45.3 thousand MW in 2024, and is expected to reach 71.98 thousand MW by 2029, growing at a CAGR of 9.70%. Further, the market is expected to generate colocation revenue of USD 127,142.5 Million in 2024 and is projected to reach USD 254,548.4 Million by 2029, growing at a CAGR of 14.89% during the forecast period (2024-2029).
USD 127,142.54 Million
Market Size in 2024
USD 254,410 Million
Market Size in 2029
14.1%
CAGR (2017-2023)
14.9%
CAGR (2024-2029)
IT Load Capacity
45,272.18 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 71,975.98 MW by 2029. It is estimated to reach 26 GB/month by 2029, thus rising data consumption would increase IT load capacity.
Total Raised Floor Space
Sq. Ft. 176.51 M
Volume, Raised Floor Space, 2024
Globally, the total raised floor area is expected to increase to 284.2 million sq. ft by 2029. Growing urbanization and greater digital penetration in emerging markets such as India, Vietnam, Indonesia, and others are expected to drive growth.
Installed Racks
8,823,462
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 14,206,878 units by 2029. North America is expected to house the maximum number of racks by 2029. The fiber expansion, growing smart cities, and digitalization would increase DC facilities.
# of DC Operators & DC Facilities
897 and 3,695
Volume, DC Facilities, 2024
There were 3,530 colocation data center facilities across the world in 2023. North America holds the highest market share. The development of fiber connectivity, and high demand for data center services are increasing DC projects.
Leading Market Player
8.5%
Market Share, Digital Realty Trust, Inc., Inc.
Digital Realty Trust Inc. has the highest market share of 8.5% compared to its competitors in the data center market. The company operates at an IT load capacity of 2,697.05 MW and is expected to increase its capacity in future.
Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period
- The tier 3 segment currently holds a major share of the market. These tiers have an uptime of around 99.982%, translating into a downtime of 1.6 hours per year. With the increasing adoption of edge and cloud connectivity, the tier 3 segment is expected to grow further in the future.
- Europe held a leading market share, with a 6,857.78 MW IT load capacity in 2022. The United Kingdom hosts the maximum number of tier 3 data centers, with Slough and Greater London holding a major share. In Ireland, Dublin is the only region that hosts more than 98% of the tier 3 facilities, with North and South Dublin holding a major share. The tier 3 segment in Europe is expected to grow from 7,979.69 MW in 2023 to 12,110.18 MW in 2029, at a CAGR of 7.20%.
- The tier 4 segment is expected to record a CAGR of 16.2% during the forecast period. Various developed countries are focusing on adopting a Tier 4 certification to get the advantage of complete fault tolerance and redundancy for every component. Therefore, many developing regions are also adopting the tier 4 zone. In the United States, over 20% of the energy mix is contributed by renewable energy, which is expected to reach 50% by 2030. The majority of data center facilities under development are adding more IT power.
- The tier 1 & 2 segment had the least growth as more than 70% of all traffic moves from server to server. Modern applications require significantly more data to travel within a data center at faster speeds and are more particular about latency. Since tier 1 & 2 data centers are projected to witness minimal growth, such growth is only expected from facilities that cater to SMEs with a minimal IT load.
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North America holds the major share and APAC is expected to be the fastest growing during the study period
- The data center market has been largely concentrated in North America, Europe, and Asia-Pacific. Northern Virginia is the largest data center hotspot in the United States, accounting for over 13.07% of the data center installed capacity in 2022. However, the future market share is expected to reflect a decreasing trend until 2029, as the market has already reached maturity. Virginia offers an exemption from retail sales and uses tax for qualifying computer equipment purchased by data centers that meet statutory investment and employment requirements. Virginia was the first state to allow the tenants of colocation data centers to receive the benefits of sales tax exemption. Virginia also benefits from densely packed fiber backbones. Virginia Beach is the landing point for four new transoceanic fiber connection cables.
- In Europe, the market is concentrated in FLAP-D metro markets, including Frankfurt, London/Slough, Amsterdam, Paris, and Dublin. The land price in London is around USD 150 per sq. ft. Higher land costs in London are expected to shift investments to other cities with lower land prices. For instance, Amsterdam has a lower land price for building facilities in the FLAP data center market, which is USD 38 per sq. ft.
- In Asia-Pacific, Australia is one of the prominent countries in terms of the growth of data centers. The country is a major hub for data centers due to its focus on renewable energy. Sydney is now powered using 100% renewable electricity generated from wind and solar farms in regional NSW. In Melbourne, the Victorian government has also set aside USD 95 million to support AI startup development in the region. With increasing technology development hubs, the demand for data centers is expected to increase significantly.
Global Data Center Market Trends
Rising data consumption, growing number of digitalization applications, such as smart services, social networking, cashless payments, smart home automation services, and other applications drives the market growth
- The global data consumption increased from 1.8 GB/month in 2016 to 7.6 GB/month in 2022. It is estimated to reach 26 GB/month by 2029. The growing number of digitalization applications, such as smart services, social networking, cashless payments, smart home automation services, and other applications, has boosted data consumption globally. A few countries, such as China and the United States, have already implemented 6G, while multiple countries are still implementing phases of 5G.
- However, in Africa, the deployment has been slow as the region plans to strengthen its 4G services first and then roll out 5G. The growing demand for online streaming services such as Netflix, Disney+, and Amazon Prime is boosting the consumption of data among users. The data consumed per smartphone increased from 1.8 GB/month in 2016 to 9.1 GB/month in 2023, which may reach 26 GB/month by 2029.
- Global data consumption is expected to grow further during the forecast period, reaching 19.2%. The leading regions in terms of data consumption are Africa, North America, and the Middle East, with 25.8%, 24.6%, and 23.9%, respectively. The increasing data consumption due to high bandwidth speeds and the growing adoption of digitalization services and IoT platforms may boost the demand for data centers globally.
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Growing digitalization services such as online shopping, social networking, cab booking, digital transactions, food orders, and other services are expected to drive the market demand
- The global population was estimated at 7.91 billion in 2022, with 4.95 billion internet users and 4.62 billion active social media users. On average, global users spend around 6 hours using the internet daily. The number of users is expected to record a CAGR of 4.6% during the forecast period (2023-2029). Growing digitalization services such as online shopping, social networking, cab booking, digital transactions, food orders, and other services are expected to increase data consumption. The data consumption is expected to grow by 18.6% during the forecast period. The regions with more than 90% internet users include North America and Northern and Western Europe.
- However, Asia-Pacific leads globally in terms of the number of smartphone users. The number of smartphone users was estimated at 2,647 million in 2022, which may reach 4,456 million by 2029. The region is estimated to record a CAGR of 7.5% in terms of the number of smartphone users during the forecast period. The deployment of 5G has helped users gain access to multiple digitalization services in the region.
- The United Arab Emirates, South Korea, China, and the Netherlands are the leading countries globally, with internet speeds of 136.4 Mbps, 106.9 Mbps, 96.3 Mbps, and 94.9 Mbps, respectively. The implementation of advanced technologies in telecommunication and smart devices and the growing number of people using digitalization services are expected to drive the growth of the global data center market in the future.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Quick adoption of 5G network and deployment of 6G in developed nations, and increasing average download speeds of both 4G anf 5G services drives the market growth
- The growing demand for home automation services, streaming content, and online gaming may increase data consumption, thus boosting the demand for data centers globally.
- The growing demand for smart devices such as televisions, tablets, lighting, and their digital applications is boosting the global demand for fiber optic cables.
Data Center Industry Overview
The Data Center Market is fragmented, with the top five companies occupying 19.81%. The major players in this market are CyrusOne Inc., Cyxtera Technologies, Digital Realty Trust Inc., Equinix Inc. and NTT Ltd (sorted alphabetically).
Data Center Market Leaders
CyrusOne Inc.
Cyxtera Technologies
Digital Realty Trust Inc.
Equinix Inc.
NTT Ltd
Other important companies include AirTrunk Operating Pty Ltd, Chindata Group Holdings Ltd, Flexential Corp., Quality Technology Services, Space DC Pte Ltd, Switch, Vantage Data Centers LLC.
*Disclaimer: Major Players sorted in alphabetical order.
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Data Center Market News
- January 2023: CyrusOne acquired an office complex in Frankfurt, Germany, planning to turn it into a data center campus. The investment group Corum had sold the Europark office complex in Frankfurt for EUR 95 million (USD 102.3 million), before confirming that CyrusOne was the buyer.
- December 2022: With a USD 160 million data center investment in JOHANNESBURG, Equinix, Inc., a provider of digital infrastructure, wants to expand its presence on the African continent beyond its current locations in NIGERIA, GHANA, and Côte d'Ivoire. In mid-2024, the brand-new data center is anticipated to open in South Africa; JN1, a new 4.0 MW data center, will offer more than 20,000 gross square feet of colocation space and 690+ cabinets. Also, there will be two further phases of development. The fully completed 20.0 MW retail complex will offer more than 100,000 gross square feet of colocation space and 3,450+ cabinets.
- December 2022: HGC Global Communications has established an agreement with Digital Realty to boost customers’ edge connectivity. Under the agreement, Digital Realty will use edgeX by HGC services for over-the-top (OTT) customers in its three Singapore data centres.
Free with this Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
Data Center Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study
1.3. Research Methodology
2. MARKET OUTLOOK
2.1. It Load Capacity
2.2. Raised Floor Space
2.3. Colocation Revenue
2.4. Installed Racks
2.5. Rack Space Utilization
2.6. Submarine Cable
3. Key Industry Trends
3.1. Smartphone Users
3.2. Data Traffic Per Smartphone
3.3. Mobile Data Speed
3.4. Broadband Data Speed
3.5. Fiber Connectivity Network
3.6. Regulatory Framework
3.6.1. Australia
3.6.2. Austria
3.6.3. Belgium
3.6.4. Brazil
3.6.5. Canada
3.6.6. Chile
3.6.7. China
3.6.8. Denmark
3.6.9. France
3.6.10. Germany
3.6.11. Hong Kong
3.6.12. India
3.6.13. Indonesia
3.6.14. Ireland
3.6.15. Israel
3.6.16. Italy
3.6.17. Japan
3.6.18. Malaysia
3.6.19. Mexico
3.6.20. Netherlands
3.6.21. New Zealand
3.6.22. Nigeria
3.6.23. Norway
3.6.24. Philippines
3.6.25. Poland
3.6.26. Russia
3.6.27. Saudi Arabia
3.6.28. Singapore
3.6.29. South Africa
3.6.30. South Korea
3.6.31. Spain
3.6.32. Sweden
3.6.33. Switzerland
3.6.34. Taiwan
3.6.35. Thailand
3.6.36. United Arab Emirates
3.6.37. United Kingdom
3.6.38. United States
3.6.39. Vietnam
3.7. Value Chain & Distribution Channel Analysis
4. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
4.1. Data Center Size
4.1.1. Large
4.1.2. Massive
4.1.3. Medium
4.1.4. Mega
4.1.5. Small
4.2. Tier Type
4.2.1. Tier 1 and 2
4.2.2. Tier 3
4.2.3. Tier 4
4.3. Absorption
4.3.1. Non-Utilized
4.3.2. Utilized
4.3.2.1. By Colocation Type
4.3.2.1.1. Hyperscale
4.3.2.1.2. Retail
4.3.2.1.3. Wholesale
4.3.2.2. By End User
4.3.2.2.1. BFSI
4.3.2.2.2. Cloud
4.3.2.2.3. E-Commerce
4.3.2.2.4. Government
4.3.2.2.5. Manufacturing
4.3.2.2.6. Media & Entertainment
4.3.2.2.7. Telecom
4.3.2.2.8. Other End User
4.4. Region
4.4.1. APAC
4.4.2. Africa
4.4.3. Europe
4.4.4. Middle East
4.4.5. North America
4.4.6. South America
5. COMPETITIVE LANDSCAPE
5.1. Market Share Analysis
5.2. Company Landscape
5.3. Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
5.3.1. AirTrunk Operating Pty Ltd
5.3.2. Chindata Group Holdings Ltd
5.3.3. CyrusOne Inc.
5.3.4. Cyxtera Technologies
5.3.5. Digital Realty Trust Inc.
5.3.6. Equinix Inc.
5.3.7. Flexential Corp.
5.3.8. NTT Ltd
5.3.9. Quality Technology Services
5.3.10. Space DC Pte Ltd
5.3.11. Switch
5.3.12. Vantage Data Centers LLC
5.4. LIST OF COMPANIES STUDIED
6. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
7. APPENDIX
7.1. Global Overview
7.1.1. Overview
7.1.2. Porter’s Five Forces Framework
7.1.3. Global Value Chain Analysis
7.1.4. Global Market Size and DROs
7.2. Sources & References
7.3. List of Tables & Figures
7.4. Primary Insights
7.5. Data Pack
7.6. Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, GLOBAL, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), GLOBAL, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, GLOBAL, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, GLOBAL, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, GLOBAL, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, GLOBAL, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, GLOBAL, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, GLOBAL, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, GLOBAL, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, GLOBAL, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, GLOBAL, 2017 - 2029
- Figure 12:
- VOLUME OF DATA CENTER SIZE, MW, GLOBAL, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF DATA CENTER SIZE, %, GLOBAL, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF LARGE, MW, GLOBAL, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF LARGE, MW, DATA CENTER SIZE, %, GLOBAL, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF MASSIVE, MW, GLOBAL, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF MASSIVE, MW, DATA CENTER SIZE, %, GLOBAL, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF MEDIUM, MW, GLOBAL, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF MEDIUM, MW, DATA CENTER SIZE, %, GLOBAL, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF MEGA, MW, GLOBAL, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF MEGA, MW, DATA CENTER SIZE, %, GLOBAL, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF SMALL, MW, GLOBAL, 2017 - 2029
- Figure 23:
- VOLUME SHARE OF SMALL, MW, DATA CENTER SIZE, %, GLOBAL, 2017 - 2029
- Figure 24:
- VOLUME OF TIER TYPE, MW, GLOBAL, 2017 - 2029
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, GLOBAL, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, GLOBAL, 2017 - 2029
- Figure 27:
- VOLUME SHARE OF TIER 1 AND 2, MW, TIER TYPE, %, GLOBAL, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, GLOBAL, 2017 - 2029
- Figure 29:
- VOLUME SHARE OF TIER 3, MW, TIER TYPE, %, GLOBAL, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF TIER 4, MW, GLOBAL, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF TIER 4, MW, TIER TYPE, %, GLOBAL, 2017 - 2029
- Figure 32:
- VOLUME OF ABSORPTION, MW, GLOBAL, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, GLOBAL, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, GLOBAL, 2017 - 2029
- Figure 35:
- VOLUME SHARE OF NON-UTILIZED, MW, ABSORPTION, %, GLOBAL, 2017 - 2029
- Figure 36:
- VOLUME OF COLOCATION TYPE, MW, GLOBAL, 2017 - 2029
- Figure 37:
- VOLUME SHARE OF COLOCATION TYPE, %, GLOBAL, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF HYPERSCALE, MW, GLOBAL, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF HYPERSCALE, MW, COLOCATION TYPE, %, GLOBAL, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF RETAIL, MW, GLOBAL, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF RETAIL, MW, COLOCATION TYPE, %, GLOBAL, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF WHOLESALE, MW, GLOBAL, 2017 - 2029
- Figure 43:
- VOLUME SHARE OF WHOLESALE, MW, COLOCATION TYPE, %, GLOBAL, 2017 - 2029
- Figure 44:
- VOLUME OF END USER, MW, GLOBAL, 2017 - 2029
- Figure 45:
- VOLUME SHARE OF END USER, %, GLOBAL, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF BFSI, MW, GLOBAL, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF CLOUD, MW, GLOBAL, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF E-COMMERCE, MW, GLOBAL, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF GOVERNMENT, MW, GLOBAL, 2017 - 2029
- Figure 50:
- VOLUME SIZE OF MANUFACTURING, MW, GLOBAL, 2017 - 2029
- Figure 51:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, GLOBAL, 2017 - 2029
- Figure 52:
- VOLUME SIZE OF TELECOM, MW, GLOBAL, 2017 - 2029
- Figure 53:
- VOLUME SIZE OF OTHER END USER, MW, GLOBAL, 2017 - 2029
- Figure 54:
- VOLUME OF REGION, MW, GLOBAL, 2017 - 2029
- Figure 55:
- VOLUME SHARE OF REGION, %, GLOBAL, 2017 - 2029
- Figure 56:
- VOLUME SIZE OF APAC, MW, APAC, 2017 - 2029
- Figure 57:
- VOLUME SIZE OF AFRICA, MW, AFRICA, 2017 - 2029
- Figure 58:
- VOLUME SIZE OF EUROPE, MW, EUROPE, 2017 - 2029
- Figure 59:
- VOLUME SIZE OF MIDDLE EAST, MW, MIDDLE EAST, 2017 - 2029
- Figure 60:
- VOLUME SIZE OF NORTH AMERICA, MW, NORTH AMERICA, 2017 - 2029
- Figure 61:
- VOLUME SIZE OF SOUTH AMERICA, MW, SOUTH AMERICA, 2017 - 2029
- Figure 62:
- VOLUME SHARE OF MAJOR PLAYERS, %, GLOBAL, 2022
Data Center Industry Segmentation
Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. APAC, Africa, Europe, Middle East, North America, South America are covered as segments by Region.
- The tier 3 segment currently holds a major share of the market. These tiers have an uptime of around 99.982%, translating into a downtime of 1.6 hours per year. With the increasing adoption of edge and cloud connectivity, the tier 3 segment is expected to grow further in the future.
- Europe held a leading market share, with a 6,857.78 MW IT load capacity in 2022. The United Kingdom hosts the maximum number of tier 3 data centers, with Slough and Greater London holding a major share. In Ireland, Dublin is the only region that hosts more than 98% of the tier 3 facilities, with North and South Dublin holding a major share. The tier 3 segment in Europe is expected to grow from 7,979.69 MW in 2023 to 12,110.18 MW in 2029, at a CAGR of 7.20%.
- The tier 4 segment is expected to record a CAGR of 16.2% during the forecast period. Various developed countries are focusing on adopting a Tier 4 certification to get the advantage of complete fault tolerance and redundancy for every component. Therefore, many developing regions are also adopting the tier 4 zone. In the United States, over 20% of the energy mix is contributed by renewable energy, which is expected to reach 50% by 2030. The majority of data center facilities under development are adding more IT power.
- The tier 1 & 2 segment had the least growth as more than 70% of all traffic moves from server to server. Modern applications require significantly more data to travel within a data center at faster speeds and are more particular about latency. Since tier 1 & 2 data centers are projected to witness minimal growth, such growth is only expected from facilities that cater to SMEs with a minimal IT load.
| Data Center Size | |
| Large | |
| Massive | |
| Medium | |
| Mega | |
| Small |
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| Non-Utilized | |||||||||||||||||
|
| Region | |
| APAC | |
| Africa | |
| Europe | |
| Middle East | |
| North America | |
| South America |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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