Mega Data Center Market Report with Forecasts & Analysis Up to 2019

In today’s businesses world, maintenance of data is one of the most crucial elements of any business and a matter of prime importance for any organization that wants to stay ahead in the competitive environment. High technological adoption by businesses and individuals is resulting in exponential growth of data and demand for easy, safe, and accessible storage, retrieval, and computing. Increasing usage of social media, digital apps, and online transfer of contents is one of the major contributors to this trend. Around 65% of the organizations worldwide are facing the need of either opening new data centers or upgrading the existing facilities, for smooth and efficient functioning of businesses.

Mega data centers are one of the prime emerging solutions to address the challenges of increasing storage demand, high availability, and easy accessibility of data. Mega data centers sprawl from hundreds of thousands of square feet to one million square feet and house at least 15,000 servers, availing organizations various advantages like economies of scale, low maintainability, and the ability to handle and facilitate enormous data transfers. Facebook, Google, Amazon, General Motors (GM), and Apple are one of the early adopters of this concept and are focusing on developing giant data centers instead of maintaining small data centers widespread across various geographical locations. A mega data center provides ease of manageability and leverages local advantages and benefits such as low power rates, easy and cheap availability of space, and favorable climatic conditions.

Mega data centers are experiencing an increasing adoption rate as companies are focusing on shifting to large data centers or planning to consolidate their small data centers into a few colossal data centers to leverage the benefits that such facilities offers.

Some of the reasons and rewards that are offered by mega data centers over traditional data center facilities are described below:

  • They offer better sense of manageability, control, and financial benefits as compared to running and maintaining numerous small data centers spread across various geographical locations.
  • Companies can leverage the advantages and local benefits that some geographical locations offer such as easy and cheap availability of space, free cooling, low tax rates, and easy and high availability of skilled manpower. Better economies of scale can be achieved by companies as establishment of this giant facility requires servers, storage devices, networking equipment, and space in bulk.
  • They offer great scalability, flexibility, and reduced additional cost of adding more numbers of users and also provide cost-effective data storage solutions.
  • Increasing numbers of cloud services and colocation service providers are further boosting the adoption of mega data centers as they offer better profits and service feedbacks.

As the infrastructure setting and initial investment for establishing mega data centers are on the higher side, some organizations might face challenges in materializing giant data centers.

Mega data center adoption rate may differ with industries and domains. The prime and early users and adopters are the telecommunication and IT companies which are considered to be prime digital and data industries. MarketsandMarkets estimates the telecom and IT vertical to hold the highest revenue throughout the forecast year, i.e. from 2014 to 2019.  Increasing adoption of digitalization of records and information is further boosting the storage and computing requirements of other industries as well, for example government and public sector, BFSI, healthcare, manufacturing, and retail. This growing demand for improved and secured data storage is resulting in the further growth and adoption of mega data centers. MarketsandMarkets estimates the global mega data center market to grow from $16.35 billion in 2014 to $20.55 billion by 2019, while registering a Compound Annual Growth Rate (CAGR) of 4.7%.

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