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Discover the Growth of the Mega Data Center Market

Author: Pooja Mahajan
by Pooja Mahajan
Posted: Sep 21, 2017

Mega data centers can exceed 10 megawatts of power and spread over hundreds of thousands of square feet, with some going towards a million square feet or 100 megawatts. Mega data centers can be situated in low cost areas. It is used to take advantage of low cost power and can achieve better efficiencies when compared with traditional data centers. By providing standardized storage and networking equipment, racks and servers with a uniform layout across a large number of customers Mega data centers can use economies of scale and bulk purchasing to reduce overall set-up and equipment costs.

The facility of deploying additional equipment evades the costs of buying equipment and decreases over-purchasing. There are many mega data center providers worldwide, such as Switch (SuperNAP), IBM, and Equinix. The selection criteria for superior mega data center include the ability to provide a best-of-breed IT infrastructure environment, with better cooling, power, space, and cost-effective communication with multiple competing communication providers. Furthermore, it should provide PaaS and IaaS services either from cloud service providers or themselves along with the security services, including compliance auditing.

A growing amount of data traffic by various enterprises is driving the mega data center market. In order to accommodate this huge amount of data, enterprises are forced to operate numerous data centers, which may or may not be located in the similar location. The cost associated with functioning of these data center is also high, which results in reduced profits. Also, for organizations it is difficult to manage more than a few data centers running in multiple locations. Therefore, many enterprises such as Google, Facebook, Microsoft, Amazon, eBay and Apple prefer to operate through its large data centers rather than having small data centers at several locations. These data centers also offer local advantages such as climatic advantages, low energy prices for significant consumption and tax benefits.

In these mega data centers, unnecessary infrastructure is removed, which reduces the operational complication. Hence, with the continuously cumulative demand for data storage across several industry verticals, organizations are enforced to come up with more cost-effective and scalable data storage solutions, which will reduce the added cost of adding thousands of users. Another major driver is local tax incentives. Mega data centers bring the prospective for a flood of jobs as well as property tax revenue, and a motivation for further expansion, to such locations. Thus, these governments are often ready to offer breaks on sales taxes or property taxes for equipment. The enterprises are often ready to gratify by locating their mega data centers in such places, taking benefit of these savings. Furthermore, due to the deployment on the bigger scale, enterprises could save cost associated with the operation of data centers.

Mega data center market can be segmented on the basis of solution, services, end-use industry, user and region. On the basis of solution, market can be segmented into IT infrastructure solutions, support infrastructure solutions. Services can be segmented on the basis of system integration services, monitoring services, and professional services. On the basis of end-use industry the market can be segmented into banking, financial services and insurance (BFSI), telecom and it, media and entertainment, government and public and others. Furthermore, user can be segmented into cloud providers, Colocation Providers, and enterprises.

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Geographically, mega data center market can be segmented as North America, Europe, Asia Pacific, Middle East and Africa and South America. North America is expected to lead due to rising adoption of mega data centers by prominent companies across the region. However, Asia Pacific is expected to grow at a faster rate due to the cost benefits, growing colocation services, need for data consolidation, and cloud.

Some of the key players in the mega data center market are CISCO, Intel Corporation, Dell, Emerson Electric Co., Juniper Networks, Inc., Schneider Electric, Fujitsu, Schneider Electric, EMC, HP and more

About the Author

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services.

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Author: Pooja Mahajan

Pooja Mahajan

Member since: Sep 11, 2017
Published articles: 259

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