Data centers play a pivotal role in the field of information and communication technology, becoming increasingly vital for the economy and society at large. These facilities house crucial information technology (IT) equipment like servers, storage units, and network gear, alongside the necessary infrastructure to meet electrical and thermal requirements. Virtually every company now relies on some form of a data center for their digital operations, making these structures indispensable for the services provided by companies in the ever-expanding and dynamic technology sector.
As the popularity of video streaming rises and the number of internet-connected devices skyrockets, data centers become integral components of the infrastructure needed to process, store, and transfer ever-growing volumes of data. This expansion is observable in both developed and developing nations, where companies and governments are increasingly investing in new data storage and deployment facilities. For example, as part of a national policy framework for data centers, the Indian IT ministry plans to offer incentives amounting to Rs. 15,000 crores, with a government investment of up to Rs. 3 lakh crores in the data center ecosystem over the next five years.
The COVID-19 pandemic has accelerated the global shift towards remote work and digital collaboration, further intensifying the demand for data centers. Organizations now require robust data center infrastructure to support remote access, video conferencing, and cloud-based productivity tools, contributing to the increased utilization of data centers. The demand for data servers and data centers has risen significantly due to the substantial increase in data output across various industries. According to statistics from 110 countries compiled by CloudScene as of January 2021, there were approximately 8,000 data centers worldwide.
The advent of edge computing has added another layer to the proliferation of data centers. Edge data centers, strategically positioned closer to end-users, aim to reduce latency and enhance the performance of latency-sensitive applications like autonomous vehicles and augmented reality. This shift has given rise to a decentralized network of smaller data centers designed to facilitate the swift processing of data at the edge. Consequently, the surge in the number of data centers reflects the increasingly data-centric nature of the world. With technology advancing and dependence on digital services growing, the construction and expansion of data centers are likely to remain a prominent trend, with a particular emphasis on sustainability and efficiency to address future challenges.
Report Attribute/Metric | Details |
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Market Opportunities | 路 Growing demand for smart KVM switches from the industrial sector路 Increased adoption for KVM via optical fibers |
Market Dynamics | 路 Rise in the number of data centers路 Energy efficient along with cost and space reduction路 Current trend towards cloud migration is expected to drive demand for single click-it operations.路 Ongoing migration towards secure-desktop environment |
漏 2025 Market Research Future 庐 (Part of WantStats Reasearch And Media Pvt. Ltd.)