Data Center Deployment Spending Market Research Report 2024-2032

Global Datacenter Deployment Spending Market Overview

Global Data Center Deployment Spending Market was valued at USD 115.78 billion in 2023 and is expected to reach USD 365.94 billion by 2032, at a CAGR of 13.64%.

Data center deployment deploys and maintains the data center server and network infrastructure of the organizations. There is a need to be well-planned, flawlessly executed, and closely maintained in the data center deployment of the networking equipment, integration of the conventional servers, and storage resources. The data center deployment requires logically segmenting all Genesys web services (GWS) nodes into different groups that use the devoted service resource like T-Servers, StatServers, and others. The data center products provide sophisticated capabilities and services in different areas which contain infrastructure automation, security, and compliance, user management, reliability, and more that help to manage more effectively enterprise-grade deployments. Creating the standard and modular design of the data center, setting the timeline and goals of the data center, and communicating with stakeholders contained in the data center is the strategy for the deployment. SMEs develop the Internet of Things (IoT) and big data, expanding the need for servers and other hardware, and improvement in the number of interconnected smart devices, these factors are involved in the blooming data center deployment spending markets.

Market Dynamics And Factors For Datacenter Deployment Spending Market

Drivers:

Rapidly Growing Investments of Organizations in Data Center Equipment

The number of organizations increasing their investment in the equipment of the data center is the key factor that helps the growth of the market of the data center deployment spending during the forecast period. Data centers are designed the support business applications and activities which contain email and file sharing, productivity applications, customer relationship management (CRM), enterprise resource planning (ERP) and databases, big data, artificial intelligence, machine learning, virtual desktops, communications, and collaboration services. Owing to its beneficial factors several organizations in the IT and telecom sector, healthcare, BFSI, government, energy, and another sector are highly invested in data center equipment. The data center equipment includes routers, switches, firewalls, storage systems, servers, and application delivery controllers. This component provides together network infrastructure, storage infrastructure, and computing resources. Thus, increasing investment in data center equipment by various organizations that propels the growth of the data center deployment spending market.

Restraints:

High Electricity Consumption and High Initial Cost

Data centers require electricity to run their equipment. Organizations use a lot of electricity to keep data centers running continuously without any interruption. The high electricity requirement increases the cost of the data center. Making the data centers among the various organization are expensive due to the cost of the component of the data center like land and building shell, electrical systems HVAC cooling systems, and building fit-out is high. Thus, the high electricity consumption and maximum initial cost for the data center deployment spending are anticipated to hamper the growth of the market.

Opportunity:

Big Data Analytics and IoT Applications Promise Lucrative Opportunities

The growing application of IoT in data centers provides a lucrative opportunity for the data center deployment spending market. In the data centers, IoT devices have used the management the task automatically and to eliminate human errors.  The number of the routine center task like monitoring infrastructure, updating software, releasing patches, scheduling jobs, configuring VMs, and automating reporting managed by IoT devices digitally. The IoT devices used as sensors can be used to measure energy consumption in the data center. This sensor tracks temperature set points, humidity, electricity levels, flow rates, and even equipment performance. It is easier to achieve an increase in storage capacity, availability of servers, computing capabilities, uptime, and network reliability due to the automating of data center tasks, processes, and operations, and is essential for the growth of the market. Moreover, the growing number of businesses that adopt the online platforms that generate big data also provides a remunerative opportunity for the data center deployment spending market during the forecast period.

Segmentation Analysis of Datacenter Deployment Spending Market

By Data Center Type, Colocation is anticipated to have maximum market share in the data center deployment market during the forecast period. The colocation data center is a physical facility to host businesses computing hardware and servers that provide space with cooling, proper power, and security. It provides better connectivity, developed network security, bursting capability, and supplies redundant power. There are two types of colocation facility such as retail and wholesale. The retail colocation facility provides the option to racks, rent space, and cages while wholesale colocation includes leasing entire rooms and facilities to place IT equipment. Data colocation requires for the IT industry, it provides better connectivity, developed network security, power redundancy through a combination of diesel power generators, double battery backup systems, multiple power grids, and excellent maintenance practices. The most organization does not have enough time for maintenance and IT team to handle IT issues, colocation data center facility provides those services. Apart from the IT sector data center colocation is contributing to the BFSI and other government sectors. The growing number of IT and telecom, BFSI, and other sectors across the globe boost the demand for the colocation data center.

By End-Users, the IT and telecom sectors have the highest market growth in data center deployment spending. This is owing to data centers being extensively used in the IT sectors. The number of IT sectors across the world is increasing due to the development of advanced technology. The IT sectors mostly used collocating to hyperscale data centers for the better management of the data. The government is majorly dependent on IT-intensive services to enhance its performance and has designed many Government-to-Citizen (G2C) delivery platforms like the National eGovernance Plan (NeGP), e-visa, and National CSR Data portal. The government of the various countries focused on the investment in the development of IT and telecom infrastructure. Thus, the growing number of IT company across the world is propelling the growth of the data center deployment market.

Regional Analysis Of Datacenter Deployment Spending Market

North America has dominated the region in the data center deployment spending market over the forecast period. This is owing to remarkable big data and IoT investment, the high presence of the number of data centers in the different sectors among the developed economies such as Canada and the United States. A number of organizations in this region adopted AI-designed processors to automate more tasks which leads to the development of the new data centers. For instance, according to Statista, in the United States as of January 2022, there are 2,751 data centers and in Canada, there are 324 data centers. The growing penetration of high-end cloud computing in enterprises in this region also rising the adoption of data centers in large organizations. The growing IT with BFSI sectors in this region supports to the increase in the demand for data centers. For instance, Statista stated that in the US the number of banks in 2021 is 4236 and according to the survey of the IT company Easyleadz, the IT sector in the US country is more than 4,50,00. These are the growth factors that can increase the market of data center deployment spending in the North American region.

Followed by North America, Asia Pacific is expected to capture the maximum market share for the data center deployment due to its growing population and with the rising number of businesses in this region. In the APAC region IT and telecom sectors rapidly growing. For instance, according to the survey of the IT and IT company Easyleadz, in India, the number of IT companies is more than 1,70,000. This growing no. of IT sectors that leads to an increase in the number of data centers. Statista stated that the number of data centers in 2022 is 447 in China, 272 in Australia, and 207 in Japan. These higher numbers of data centers support the growth of the data center deployment market in this region. Data centers are also highly used in BFSI sectors owing to the rising number of online payment applications and mobile wallets. In the APAC region a high number of BFSI sectors, so the demand for the data center is rising in this region which supports the growth of the data center deployment spending market in this region.

Europe has notable growth in the data center deployment market owing to the rapid adoption of advanced technology, and a growing number of businesses. The high IoT investment, and large presence of the number of data centers in the various sectors in this developed region. For instance, Statista stated the number of data centers present in 2022 in Germany is 484, in the United Kingdom is 458, and in France is 263. This high presence of the data centers results in the growth of the data center deployment spending market in the Europe region.

Covid-19 Impact Analysis On Datacenter Deployment Spending Market

COVID-19 began in Wuhan (China) in December 2019 and has since rapidly grown around the globe. In terms of confirmed cases and reported deaths, the US, India, Brazil, Russia, France, the UK, Turkey, Italy, and Spain are among the countries that have been most severely impacted. Because of the lockdowns, travel restrictions, and business closures, COVID-19 has had an impact on the businesses and industries of numerous nations. The Covid -19 has led to positive growth in data demand owing to remote work and shelter-in-place orders across the world. During this time the adoption of the data centers in the healthcare, BFSI, and government sectors. Growing work-from-home culture, and rising mobile streaming apps’ popularity during the pandemic, results in increasing the data centers which provided the growth for the data center deployment spending market.

Top Key Players Covered In Datacenter Deployment Spending Market

• Microsoft(US)
• IBM (US)
• Google Inc. (California)
• Digital Reality (UK)
• AT&T (Dallas)
• NTT Communication Corporation (Japan)
• HP Company (California)
• Cisco Systems (San Jose)
• Equinix (California)and other major players.

Key Industry Development In The Datacenter Deployment Spending Market

• In December 2023, Equinix revealed its intentions to extend its backing for advanced liquid cooling technologies, including direct-to-chip solutions, to over 100 International Business Exchange (IBX) data centers across more than 45 cities globally. This initiative builds upon Equinix's current provision that facilitates liquid-to-air cooling, incorporating in-rack heat exchangers in nearly all IBX facilities. The expansion aims to empower a broader spectrum of businesses to leverage high-performance cooling technologies suitable for robust, high-density hardware crucial for compute-intensive workloads such as Artificial Intelligence (AI).

• In November 2023, DXC Technology and AWS are expanding their collaboration to accelerate customers' transition to modern, cloud-centric it. The partnership aims to facilitate the migration from aging data center facilities to agile, secure, and sustainable cloud solutions provided by AWS, driving down operating costs for DXC and its customers. DXC plans to divest some of its current data centers to interested parties.