The total value of the data center market was $220 billion in 2021, and it will rise at a growth rate of above 5% in the near future, to reach around $344 billion by 2030. The major reason behind the growth of this industry is the exponential increase in data. Thus, the requirement for these data centers is surging because of the growing need for mobile, analytics, and cloud services globally. In recent years, due to the extensive growth of social media channels, the need for new data centers have emerged for storing gathered information.
IT sector generated the highest revenue for data centers industry, as it comprises storage, network, and server infrastructure, which indeed is the backbone of these services.
It is also projected to continue its dominance in coming years. In these days, companies are leaning more toward well-equipped centers to allow improved data management as data analysis has become essential for business growth. Such reasons will contribute to the growth of this industry in the coming years.
The IT and telecom sector is projected to dominate the industry in the years to come. Due to the wide acceptance of improved technologies like cloud computing, the internet of things and artificial intelligence, vast amount of data is produced. This data comes from personnel records, server logs, network equipment, mobile internet usage, billing activities, and social media channels.
To meet this huge demand for storing data, operators in the IT and telecom industry are renting third-party spaces. Such methods facilitate IT and telecom businesses to manage and store huge amount of data and increase their storage size as per their need.
The massive increase in data generation is one of the biggest reasons behind the growth of data center industry. Over 64 zettabytes of data were generated in 2020. And, experts are projecting that by 2025 around 10 times more data will be created in as compared to 2017. Over 2.5 quintillion data is created on daily basis.
In 2021, the North American industry held the largest share of data center market of around 40%. In addition, The U.S. has around 2,600 data centers, several centers are located in northern California, due to the presence of several IT companies like Facebook, Google, Yelp, twitter and uber.
Moreover, North America spends a generous amount in R&D, which leads to the formation of advanced data centers that are efficient for managing information. The region also has advanced and well-organized technological structure.
Hence, the booming IT sector and extensive growth of social media platforms will drive the data center industry in the coming years.
