Global data center power market has truly gained an incremented pace of advancements from IT and telecom sector in recent past, courtesy- the humougous amount of data generated by these businesses that demand adequate storage. The tech-infrastructure of today’s corporate organizations has massively grown both in terms of depth and complexity, which in consequence has raised significant challenge to the use, deployment, and maintenance of IT infrastructure. In the face of this pressure, as per experts’ opinion, the present state of data centers demands a digital transformation that would ensure space utilization and lower power consumption, while streamlining the operations, cost, and performance scales of the companies. In fact, as per estimates, by 2020, the heavy workload demand of next generation application and modern IT architectures, would approximately push more than 50% of organizations to update their existing data center assets and deployment of new facilities. The figure, itself gives a clear picture of the immense growth opportunity of data center power market share, which is slated to exceed USD 27 billion by 2024.
Europe data center power market, by solution, 2016 & 2024 (USD Million)
Rising Power Cost ∝ Data center power market size
The incredibly growing cost of energy is quite indicative of the growth potential of data center power market. Primarily on account of higher server densities and subsequent overloading on age-old facilities, energy consumption across the data centers is sky rocketing day by day. Amidst this backdrop, lowering the energy consumption and reducing the management cost are the two prime concerns that IT vendors are dealing with, which, in turn, is driving the data center power industry expansion in this sector. For the records, depending on the type of data center, energy cost, in the present scenario, is almost around 30% to 40% of an organization’s total operational cost in that particular region. Add to it, if consumers continue to integrate more server, networking, and storage equipment, without taking any constructive effort on energy saving strategy, the consumption is slated to escalate, claim experts.
Tech giants, in an effort, to respond to this alarming call, have been showing a heightened interest toward digital transformation, which by extension is providing a significant push to data center power industry. The outdated datacenter facilities are getting substituted with advanced systems comprising innovative management technologies that quite effectively reduce PUE (power usage effectiveness) ratio and increase the efficiency. In this regard, experts believe, the integration of colocation and hyperscale facilities in data center power market have immensely benefited IT companies with regards to improved scalability, security, and reduced cost.
Tech giants’ contribution in proliferating data center power market share:
It is undeniable that rising cost and complexity are the two prime challenges that most of the IT enterprises are currently grappling with. Majority of these companies, in a bid to focus on reducing the cost and increasing the efficacy, are seeking for a solution that would help them to create a more dynamic IT fabric. The growth of data center power industry can be fundamentally credited to this aspect. The foremost strategy being implemented by the IT vendors is upgradation of data centers with more efficient and advanced server architectures, ensuring improved operations even in limited budgets. Data center power market providers are readily introducing adaptive control systems that significantly curtail the energy consumption, thereby reducing the overall operating cost as well as TCO (Total Cost of Ownership). With increasing investments in intelligent power management products in tandem with growing consumer awareness toward electricity saving, data center power market is sure to make huge turnarounds in terms of profit over the ensuing years.