Mega Data Center Market

Global Mega Data Center Market Size (2024 to 2029)

The global mega data center market will expand from USD 23.94 billion in 2024 to USD 30.13 billion by 2029, growing at a CAGR of 4.7% during the forecast period.

Current Scenario of the Global Mega Data Center Market

The mega data center refers to a single installation with 15,000 or more servers. Increased digitization around the world is expected to add value to different end-user industries, such as BFSI and IT services. There is a growing need for mega-data centers around the world. It has been identified that various government agencies are facilitating Industry 4.0 through the implementation of IoT and cloud services, which should stimulate the market for mega-data centers. Mega data centers have an impact on the global data center market with their high computing capacity, storage capacity, bandwidth, and ability to facilitate huge data transfers. These large-scale data centers are obvious examples of IT advancements and have become crucial for organizations to stay in this competitive environment. The mega data center refers to a single installation that covers large areas. These data centers often function in a power range between 10 megawatts (MW) and 100 MW. Virtualization has fuelled the data center industry over the years. Businesses have attempted to reduce infrastructure by focusing on IT operations on fewer, more used machines. This process has led to a broader view of data centers in general. Companies operating multiple data centers may choose to focus their installations on smaller deployments in the hope of reducing complexity and costs.

MARKET TRENDS

 Increased demand from the BFSI sector to accelerate market growth in the foreseen period.

The banking and financial sector is one of the largest generators of data, and the need for a data centre to regulate the cost of operations is the highest. Financial and banking structures use data centers to store customer records, employee management, transactions, and electronic banking services, such as branchless banking, tele-banking, and self-investigation, which need data centers for their operation. Data centers are nowadays considered a solution to several existing infrastructural concerns. Several enterprises have implemented private cloud systems to support huge networks, storage, and server capacity to assist financial centers, ATMs, and online accounts. Although every bank includes its own data center, fluctuations in earnings are likely to affect this trend in the future. Besides, the maintenance involved with these data centers is complex because of the limited expense in IT, real estate, and others, as it includes sufficient electrical, security, and cooling properties, which can hamper the implementation in the BFSI industry in the coming days. 

MARKET DRIVERS AND RESTRAINTS

The global mega data center market is promoted by the increasing call for data center consolidation and the costs related to it.

As it is convenient and cost effective to operate a single mega data center, the companies are not focusing on the set up of multiple data centers. The increasing use of cloud services for data storage is also expected to stimulate the market in the next six years. Mega data centers require large investments and the approval of government authorities. Furthermore, there is a high probability of multiple errors when using such a data storage mechanism. These factors are supposed to limit market growth over the calculated period. On the contrary, new infrastructure solutions and the rise in co-location centers are determined to open new doors for this business growth.

Impact of Covid-19 on the Global Mega Data Center Market

The emergence of the COVID-19 pandemic has stopped the world, creating a huge adverse impact on almost all organizations in various end-user verticals. However, the supportive initiatives taken by both public and private sectors are helping in the fight against this disease. The increasing work-from-home trend is supposed to fuel cloud applications and technology activities, which will support the expansion of the global mega data center market.

REPORT COVERAGE

REGIONAL ANALYSIS

North America is the largest market for mega data center's due to the presence of a large number of e-commerce providers in the region.

The increasing demand for high-density redundant facilities in China is driving a change in the design and development of data centres in the Asia Pacific locale. China has 50 Internet users per 100 inhabitants, indicating considerable development possibilities and the connectivity ecosystem is made up of 73 colocation data centres, 52 cloud service providers and so on, supporting business growth in the Asia Pacific.

KEY PLAYERS IN THE GLOBAL MEGA DATA CENTER MARKET

1. Cisco Systems Inc.

2. Dell Software Inc.

3. EMC Corporation

4. Emerson Network Power

5. Fujitsu Ltd

6. Hewlett-Packard Company

7. IBM Corporation

8. Intel Corporation

9. Juniper Networks Inc.

10. Schneider Electric SE.

RECENT HAPPENINGS IN THE GLOBAL MEGA DATA CENTER MARKET

• In January 2019, GI Partners, a leading private investment company in San Francisco, continued to focus on investments in technology infrastructure, with the purchase of two NTT Data data center properties that are situated in Texas and Washington, adding to the former’s huge portfolio of data center and technology funtions.

• In June 2018, AT&T completed the sale of 31 of its colocation data center facilities to Brookfield Infrastructure, which was first announced in June 2018. Under the agreement, AT&T received $1.1 billion Brookfield dollars.

DETAILED SEGMENTATION OF THE GLOBAL MEGA DATA CENTER MARKET INCLUDED IN THIS REPORT

This research report on the global mega data center market has been segmented and sub-segmented based on the solution, service, application, end-user, and region. 

By Solutions

• Cooling,
• IT Infrastructure,
• Management Software
• Networking
• Power
• Security
• Server
• Storage
• Supporting Infrastructure

By Services

• Professional
• Monitoring
• System Integration

By Application

• Cloud
• Enterprises
• Co-location

By End-User

• Banks
• Insurance and Financial Services (BFSI)
• Government
• Public
• Media and Entertainment
• Telecommunications and Computing
• Others

By Region

• Asia Pacific
• Europe
• Middle East and Africa
• North America
• Latin America