Market Trends of North America Containerized Data Center Industry
Government Sector Expected to Witness Significant Growth
- Government agencies are also broadly adopting containerized data centers to bolster security. The sensitive data, such as employees' social security numbers, addresses of service members, and citizens' information, are stored in modular data centers operated by AI systems for an additional layer of protection.
- Government initiatives and the digitalization of public accessibility platforms are the greatest sources of demand for containerized data centers worldwide. This is increasing the demand for modular data centers.
- For instance, in September 2022, the US Department of Energy announced that it is providing USD 42 million in funding for initiatives to lower the energy consumed for cooling in data centers and reach net zero carbon dioxide emissions by 2050.
- Moreover, in February 2023, Amazon Web Services (AWS) pitched a modular data center (MDC) to the US government to make it easier to deploy makeshift bit barns managed by AWS in remote locations. AWS MDC is a self-contained modular data center unit for US Department of Defense (DoD) agencies, which can scale by deploying additional units. Each is housed inside a ruggedized shipping container for freight transportation via ship, rail, truck, or even air transport using military cargo aircraft.
- Considering the Canadian environment, the Government of Canada (GC), by its "cloud-first" strategy, outlined that cloud services are identified and evaluated as the principal delivery option when initiating information technology (IT) investments, initiatives, strategies, and projects.
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United States Expected to Witness Significant Growth
- Enterprises in the North American region have started to view hyper-convergence as a viable alternative to the traditional data center. It combines storage, networking, and computing into a single system, reducing data center complexity and increasing scalability. As a result, an increase in adopting a hyper-converged infrastructure platform is driving the containerized data center market.
- According to a report by Coldwell Banker Richard Ellis (CBRE), the total capacity of the US primary data center markets grew by 352.9 megawatts (MW) or 10.5% in H1 2022. The country is expanding its capacity by more than 1600 MW, currently under construction. As a result, the primary US wholesale data center market recorded a combined 453.4 MW of net absorption in H1 2022, more than triple H1 2021's level and almost 60% of it in Northern Virginia.
- The development of edge data centers attributes solely to containerized data centers, as it tends to meet an organization's new-age demands. Moreover, it is highly adopted due to its portable format, quick to install, scalable, and equipped with server functionality at a given point in time, regardless of location. Therefore, market players are observed to manufacture servers compatible with containerized data centers.
- In September 2022, Subsea Cloud, the company proposing to put commercial data centers in deep ocean waters, announced its plan to install a pod near Port Angeles, Washington State. The pod will start with a 6m (20ft) shipping container around nine meters underwater, holding 800 servers, eventually scaling to 100 such pods.
- Moreover, the region has a strong foothold of modular data center providers, which adds to its growth. Some include IBM Corporation, HPE, Vertiv Co., Cisco Systems, and Dell EMC.
- For instance, Google announced its plan to invest USD 9.5 billion in new offices and data centers in the US by the end of 2022. Moreover, Google has spent over USD 37 billion on its offices and data centers across 26 US states. Such significant investments by the key players in the region are expected to boost the development of containerized data centers.
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