In an era of lightning-fast technological advancements and a relentless surge in data generation, the data center industry faces a pivotal choice: evolve or become obsolete. As technology continues its rapid progression, data centers must keep pace or risk inefficiency and obsolescence. The global data center renovation market is thriving as organizations worldwide recognize the advantages of modernizing their IT facilities.
Key Market Drivers
The proliferation of connected devices and accessible internet access, coupled with decreasing internet service costs, has fueled the global demand for data storage. The rise of big data analytics and cloud-based services, including streaming content, applications, videos, and social media, has led to an unprecedented surge in data creation. In 2020 alone, the world produced a staggering 64.2 zettabytes of data, and this figure is projected to exceed 180 zettabytes by 2025. This exponential data consumption is driving the growth of the data center renovation market.
Moreover, various industries are embracing cloud solutions and harnessing the benefits of data center services to meet their evolving needs. These trends are directly contributing to the growth of the Internet of Things (IoT), resulting in the establishment of numerous data centers worldwide. In 2021, there were over 10 billion active IoT devices, and this number is anticipated to surpass 25.4 billion by 2030. Consequently, the escalating volume of internet data generation is set to boost demand for data storage, creating numerous profitable opportunities for participants in the data center renovation market in the coming years.
Cooling Products Take Center Stage
Within the data center renovation market, the cooling segment is poised to dominate in the forecast period. The demand for efficient cooling equipment is driven by the necessity to maintain optimal temperature and humidity levels in data centers. Given that data centers operate around the clock, year-round, the IT infrastructure generates substantial heat. To ensure proper functionality of IT equipment and prevent downtime and data loss, cooling systems are essential. These systems not only manage excess heat generated by CPUs and servers but also maintain stable humidity levels and protect IT and electrical components from corrosion.
North America is expected to lead the data center renovation market in the forecast period, primarily due to substantial investments in hyper-scale projects. Investments in metro infrastructure have created favorable conditions for data center establishment, with ongoing and planned projects further driving market expansion. The region is home to mature economies with advanced network infrastructures and major cloud service providers such as Amazon.com, Google, Inc., and Facebook, all of which are expanding their data storage and processing capacities, opening up new opportunities in the data center renovation market.
In the Asia-Pacific region, the market for data center renovation is projected to experience rapid growth, with China and India contributing significantly to the regional data center construction industry. Investments by cloud service providers and hyper-scalers, along with government initiatives to embrace cloud-based technologies for large-scale data storage, are propelling market growth. Japan, in particular, is witnessing significant growth, driven by the increasing adoption of digital services, prompting organizations to modernize their existing data center facilities to enhance the customer experience.
Market participants are introducing new products and forging collaborations, alliances, and partnership agreements to stay competitive. For instance, in August 2021, NTT Ltd. announced the construction of a new data center campus in Phoenix, Arizona, as part of its expansion strategy. Similarly, DPR Construction revealed plans to develop a new data center for Facebook in Mesa, Arizona, designed for efficient cooling and water conservation.
Key players in the data center renovation market include Vertiv Co., Eaton Corporation, Schneider Electric, Cisco Systems, Inc., APL Data Center, Black & Veatch Holding Company, Panduit Corporation, Dorsalys (Eiffage Energie Systemes), and IBM Corporation.
As the data center renovation market continues to evolve in response to the ever-expanding digital landscape, organizations worldwide are recognizing the imperative need to modernize their IT facilities to stay competitive, efficient, and secure in the data-driven future.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/data-center-renovation-market
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