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451 Research, IDC Reveal Growth of Mega Data Center Market

February 24, 2015

A recent study from 451 Research reveals a downward trend in developed markets concerning the data center market in those countries. That includes North America and Europe. However, developing markets in the Asia-Pacific, Latin America, and Middle East and Africa regions showed small gains last year which largely offset the losses found in developed regions.

As TMC reported previously, the specific components of the data center market that 451 Research references in its report, “Voice of the Enterprise: Data Centers,” include just server closets and rooms that enterprises construct or upgrade; the analysis of growth or decline in the above markets leaves out the formation of new hyperscale cloud facilities and activity from service providers and multi-tenant datacenter vendors. Data Center Knowledge added to that initial news this week when it cited research from IDC that found similar results regarding growth of the enterprise data center market but also predicted that mega data centers would dominate the market by 2018.

In three years, IDC predicts, service providers that desire access to larger data facilities -- mega data centers – will have flooded the market with construction that could account for more than 70 percent of all data center construction worldwide. This prediction gains some steam from the 451 Research finding that hyperscale data center construction grew four percent last year.

This reality and possible future led Daniel Harrington, the research director for enterprise data centers at 451 Research, to comment that the bright spot for data center vendors would be that there is still a demand for outsourced IT resources. However, that knowledge comes with the caveat that the data centers of the future will be more efficient and will likely serve multiple tenants through the model known as the multi-tenant data center. Those MTDCs are pictured to take over the market by providing efficient services that will save tenants money but may ultimately, by their nature of compact design and global reach, negatively affect vendors by lowering the number of centers they construct versus the number of tenants they serve.

Edited by Maurice Nagle

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