Market Trends of New Jersey Data Center Industry
Cloud Computing in BFSI is anticipated to hold a significant share
- To deliver innovative services, ensure a convenient and customized customer experience, and create shareholder value, BSFI companies must constantly reimagine their business to capitalize on emerging technology-led disruption, create shareholder value, and build a long-term competitive advantage on new channels.
- 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.
Understand The Key Trends Shaping This Market
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Rising Adoption of Hyperscale Data Centers
- Demand for cloud services has increased due to the pandemic, requiring continuous data backup, and digital transformation is speeding up in all industries. Hyperscale data centers have seen an increase in investment due to the cloud transition. In direct proportion to the growth in data consumption and use of the cloud, the necessity for data centers has increased tremendously.
- As the use of big data grows, new business requirements will emerge, and data center resources will be needed more frequently. New Jersey and New York are significant IoT and big data hubs where more data will be generated. As a result, hyperscale development in these areas has occurred to preserve the data. The adoption of IoT-based devices is rapidly increasing in various industries, including manufacturing, shipping, healthcare, and lifestyle.
- Furthermore, hyperscale data centers offer several benefits over traditional data centers, including improved scalability, flexibility, and cost-effectiveness. Hyperscale data centers can be rapidly scaled up or down based on demand, making them ideal for businesses with fluctuating needs. They also utilize advanced automation and monitoring systems to optimize efficiency and reduce costs.
- According to recent data, nearly two-thirds of the world's population - around 5.3 billion people - will have internet access by 2023, up from 3.9 billion just three years ago. Demand for hyper-data-center-based computing and connectivity will continue to rise as more people connect to the Internet. Analysts predict that over 29 billion of these - wearables, smart appliances, and autonomous vehicles, among many other Internet of Things (IoT) devices - will connect to networks in the next two years, with machine-to-machine (M2M) traffic accounting for more than half of all connections by 2023. The massive increase in global internet traffic over the next 2-5 years will remain the primary driver of hyper-data center demand.
