Petroc Taylor
Research expert covering global developments in the use of data
Data center market leaders - statistics & facts
The data center industry has shot to prominence over the past decade, with next-generation technologies such as AI and the cloud causing data traffic to surge worldwide. Data centers function as the core digital infrastructure supporting such technologies by processing intensive compute workloads and storing vast amounts of data. This rising demand has nurtured a competitive and high stakes data center market, with a range of key players expanding their already extensive portfolios across the globe. The market leaders operate within two core business models. Operators such as Equinix and Digital Realty specialize in colocation, offering capacity in data center facilities for rent, while big tech firms such as Google and Microsoft operate hyperscale data centers to support their cloud operations.
With AI workloads consuming considerable power, sustainability concerns will loom large for the foreseeable future. While governments are beginning to recognize the critical nature of data centers in powering digital transformation, some are also looking to compel operators to become more transparent in sustainability reporting. New rules brought into force by the EU now require operators to report key metrics, making clear the cost of the AI revolution.
Equinix continues to expand
For many organizations worldwide, colocation has become an attractive and cost-effective alternative to hosting on-premises data centers. Colocation providers offer a full suite of services that would be costly for clients to ensure on-site, including reliable power, efficient cooling, security, and seamless scalability. California-based Equinix has cemented itself as a leading player in this sector, combining its colocation offerings with expertise in interconnection. Equinix’s remarkable growth saw the firm’s revenue exceed eight billion U.S. dollars in 2023, while it’s portfolio of so-called International Business Exchange (IBX) data centers reached 242 worldwide. Digital Realty, Equinix’s closest rival, listed the same number of facilities worldwide that year, with revenue reaching almost 5.5 billion U.S. dollars.Microsoft explores alternative power solutions
From novel power solutions to elaborate cooling systems, efforts to meet consumer demand have seen cloud providers become innovators in data center technology. Amazon is considered a pioneer in cloud computing, having launched its Amazon Web Services (AWS) business in 2006. AWS has since become a key revenue stream for Amazon, with the tech giant striking a major AI chip deal with Intel as it expands its data center facilities across the globe. Meanwhile, Microsoft, which rivals AWS with its Azure platform, has made headlines with its exploration of a range of power solutions. This has included an exclusive deal with the operator of the revived nuclear plant at Three Mile Island in Pennsylvania, as well as interest in small modular reactors and hydrogen fuel cells.With AI workloads consuming considerable power, sustainability concerns will loom large for the foreseeable future. While governments are beginning to recognize the critical nature of data centers in powering digital transformation, some are also looking to compel operators to become more transparent in sustainability reporting. New rules brought into force by the EU now require operators to report key metrics, making clear the cost of the AI revolution.
