Helping people, make the best data center decisions possible.
2023 Data Center Predictions
In this podcast, we explore some of the key predictions for the data center industry in 2023, including difficulty in delivery, pull back from larger users, lease price increases, international expansion, and secondary market growth. By understanding these trends, data center operators and businesses can better prepare for the future and take advantage of new opportunities.
0:00 - Intro
0:55 - 2022 predictions review
6:19 - 2023 predictions overview
7:14 - Difficulty in Delivery
9:27 - Pull Back from Larger Users
12:06 - Price Increases on Retail, Wholesale, and Hyperscale
14:55 - Companies Expanding Internationally
19:22 - Secondary vs Primary Market Growth
23:15 - Closing Thoughts from David
Overall, 2023 is shaping up to be an exciting year for the data center industry. And now more than ever, it is crucial for data center operators and businesses to stay up-to-date on these trends and developments in order to remain competitive and take advantage of new opportunities. By doing so, they can ensure success and continue to drive the industry forward. Check out our Insight tool to get deep analysis and trends updated each quarter on global data center markets.
The Challenges Of Planning Infrastructure with Evoque CEO, Andy Stewart
We recently sat down with Andy Stewart from Evoque Data Centers to discuss the challenges and progress of technology companies when it comes to infrastructure planning. We discussed how many tech companies nowadays require large amounts of power and why they need a partner who not only provides solutions for large-scale projects but also offers long-term planning and budgeting solutions. This is what Evoque calls “spend agility”.
We also discussed the importance of sustainability, with renewable power being a major trend in data centers today. Andy believes that companies are looking for ways to reduce their carbon footprints and increase energy efficiency. He also noted that data center campuses are growing larger and more complex, meaning they need to be designed with sustainability in mind.
Andy predicts that companies will continue to invest heavily in renewable solutions for their data centers over the next few years. With this trend becoming more popular among tech companies, Andy believes that the industry will continue to move towards a more sustainable future.
A big thanks to Andy for joining us and sharing his insights! It was great to complete the trilogy from a discussion perspective and we look forward to the next one.
How data center businesses are adapting to the ever changing data center industry with Cyxtera's COO
As data centers have continued to shift and grow, the data center industry has had to adapt. Along with this growth, new opportunities and challenges have arisen for businesses in the space. In order to stay ahead of the curve, it's important for companies to be aware of these changes and how they can impact their business. In this video discussion with Randy Rowland, COO of Cyxtera, we discussed some of the latest changes in the data center industry and how businesses like Cyxtera have been able to adapt and change with them.
#1 Data Centers are Shifting East
For a long time, North America has been home to the majority of data centers. However, that is starting to change. As data centers continue to migrate eastward, Asia is quickly becoming a major player in the space. This shift is largely being driven by two factors: first, rising demand from Asian companies and governments; and second, falling costs in Asia relative to other regions.
As a result of this migration, businesses need to start paying attention to new markets like China and India if they want to remain competitive in the data center space.
#2 The Rise of Edge Computing
Another trend that is impacting the data center industry is edge computing. Edge computing refers to the practice of moving processing power closer to where it is needed most. This is often done to improve performance or reduce latency.
As the internet of things (IoT) continues to grow, the demand for edge computing is expected to increase. This is because devices that are part of the IoT often need to communicate with data centers in real-time. By moving processing power closer to these devices, businesses can ensure that data is processed quickly and efficiently.
#3 Data Centers are Getting Greener
As awareness of the environmental impact of data centers has grown, so too has the pressure on businesses to operate in a more sustainable way. As a result, many data centers are now adopting green practices, such as using renewable energy, recycling waste heat, and using more efficient cooling systems.
Adopting these practices not only helps to reduce the environmental impact of data centers, but can also lead to cost savings. As energy costs continue to rise, businesses that have adopted green practices will be better positioned to remain profitable.
#4 The Cloud is Here to Stay
The cloud has caused some big changes in the data center industry, and its impact is only expected to grow in the years to come.
The cloud offers a number of advantages over traditional data center models, including increased flexibility, scalability, and cost-efficiency. As a result, more and more businesses are moving to the cloud.
The cloud is also having a major impact on the way data centers are designed and operated. As more businesses move to the cloud, data centers are becoming more standardized and simplified. This trend is expected to continue as the cloud becomes an increasingly integral part of the data center industry.
Looking to the future, it's clear that the data center industry is undergoing a period of major change. Businesses that are able to adapt and take advantage of these changes will be well-positioned for success.
5 Major Shifts in the Data Center Industry
The data center industry is in the midst of some major changes. Here are five of the biggest shifts that you need to know about.
The data center industry is facing a shift in timing, as developers are doing what they can to try to keep up with the demand. Providers have a goal to sign leases which is leading to a land rush dynamic, as companies are attempting to lock in space sooner rather than later. This rush is being driven by the need for reliable and consistent power, as well as the rise of cloud services. One example of this can be seen in Northern Virginia. This is a historically reliable market, but with recent power delivery challenges, providers are looking to submarkets around Ashburn and even other major market markets for opportunity.
The industry is also seeing a shift in pricing as providers are raising rates and customers are becoming more selective. This shift is being driven by the increasing costs of operating data centers, which is being passed on to customers. In some markets, prices are increasing by as much as 20%. Due to this high demand, data center lease rates are coming at a premium rate.
Types of development:
One of the major types of development changes occurring in the data center industry is an increase in build-to-suit (BTS) projects. In the past, most data center developments were either owner-occupied or speculative builds that were subsequently leased out. However, BTS projects are becoming more common as companies look for turnkey solutions that meet their specific needs. This shift is being driven by the increasing complexity of data center operations, which has made it more difficult for companies to find space that meets their requirements.
Another change in the data center industry is a shift in focus from domestic to international markets. In the past, most data center development was concentrated in North America. However, this is changing as companies look to expand their operations into new markets. This shift is being driven by the increasing global nature of business, which has made it necessary for companies to have a presence in multiple countries.
The data center industry is also seeing a change in site selection criteria. In the past, most data center development was concentrated in urban areas. However, this is changing as companies look to lower their costs by locating data centers in cheaper, less-developed areas. This shift is being driven by the increasing costs of operating data centers in urban areas, which has made it more expensive for companies to locate their facilities there.
These are five major shifts that are occurring in the data center industry. Each of these changes are driven by a different factor, but they all have one thing in common: they are all making it necessary for companies to adapt their operations to meet the changing demands of the market. As the data center industry continues to evolve, these shifts will continue to shape the way that companies do business.
North American Data Center Industry Growth
The North American data center industry is expected to experience significant growth in the next few years. There are several factors driving this growth, including the rise of big data and cloud computing, and the increasing demand for colocation services. In this blog post, we will take a closer look at the North American data center market and explore some of the key drivers behind its growth.
The data center industry is growing rapidly in North America, thanks to the increasing demand for cloud services.
As the world continues to grapple with the ongoing pandemic, the data center user is increasingly turning to cloud technologies to meet their ever-changing needs. The pandemic has created a surge in demand for data storage and processing power as businesses strive to remain agile and responsive in the face of unprecedented challenges. At the same time, the pandemic has led to a scarcity of capacity in some data center environments, as providers struggle to keep up with elevated demand. As a result, the data center user is increasingly turning to cloud providers for their data storage and processing needs. While the pandemic has created challenges for data center users, it has also presented opportunities for cloud providers to expand their reach and address the needs of a new generation of data center users.
With the increasing popularity of cloud computing, many businesses are looking to take advantage of the scalability and flexibility of this type of infrastructure. However, migrating data and workloads to the cloud can be a daunting task. There are a number of factors to consider, such as data security, compliance, and performance. In addition, many businesses are reluctant to give up control of their data and applications. As a result, there is a growing demand for data center services that can help businesses make the transition to the cloud. These services can provide the expertise and resources needed to plan, design, and implement a successful cloud migration. In addition, they can also help businesses manage and optimize their data center operations. As more businesses move to the cloud, data center services will become increasingly important.
Data centers are becoming more efficient due to new technology and design innovations.
Data centers are the backbone of the modern economy, housing the servers and networking equipment that power our online world. As data demands have grown, so too have data center energy requirements. However, data centers are becoming more efficient due to new technology and design innovations. By using data center management software, operators can monitor server utilization and make real-time adjustments to conserve energy. New server designs are incorporating energy-saving features such as advanced cooling systems and low-power processors.
Additionally, data center operators are increasingly looking to renewable energy sources to power their facilities. By using solar, wind, or hydro power, data centers can reduce their reliance on traditional energy sources and help to reduce greenhouse gas emissions. As the data center industry continues to grow, we can expect to see even more innovation in energy-saving technologies.
The future looks bright for the data center industry, as demand for cloud services continues to grow.
The data center industry is poised for strong growth in the coming years, as demand for cloud services continues to increase. This is good news for data center operators, as they will be able to capitalize on this growing market. In order to meet this demand, data centers will need to expand their capacity and invest in new technologies. This will require a significant amount of capital, but the potential return on investment is high. The future looks bright for the data center industry.
If you're looking for a data center information in North America, Europe, or APAC, we've got you covered. Be sure to check out our insigh
Big Topics: Data Center Investing with Carlyle
Get a 15 minute demo of our platform:
In this episode of our series “Big Topics”, we are discussing data center investing with Josh Pang, Head of Digital Infrastructure for Carlyle Infrastructure Group. Carlyle is a global investment firm with over $300B of assets under management and Josh has over 15 years experience in infrastructure investment. In this conversation, we cover several unique variables in data center investment.
Current Data Center Investing Environment
Valuations multiples remain high across the data center sector. The pace has accelerated as investors gain confidence in the long term trend supporting data center growth and demand. With record high valuations, investors are utilizing a buy-and-build” strategy for speed to market. Secondary EU and APAC markets are garnering more demand as well. Edge Computing is starting to show profitable and sustainable use cases due to densification of networks, lower latency deployments, and proliferation of fiber capacity.
Sustainability and Power Constraints
Demand for green data centers is growing. Environmental, Social, and Governance (ESG) is becoming a focus across the industry. Carlyle prioritizes their focus on green energy and has partnered Birch Infrastructure for green data center solutions. Many approaches are being utilized to manage power more effectively to reduce consumption in light of emerging constraints. Increased demand is expected in spite of various challenges in the industry.
Please share and like this video if you found this information helpful and be sure to stay tuned for our next episode!