Petroc Taylor
Research expert covering global developments in the use of data
Data centers - statistics & facts
Although data centers may not make front page news, they serve a critical role as the infrastructure powering the most exciting developments in tech. While data centers were once known as small rooms housed on-site by business users, they have increasingly become extensive, centralized facilities managed by multinational operators. Many organizations rent data center capacity from a so-called colocation provider such as Equinix or Digital Realty, while others subscribe to cloud subscription services to take care of their storage and compute requirements. The global market was forecast to bring in 344 billion U.S. dollars in 2024, propelled by the adoption data intensive technologies.
Hyperscale operators continue to expand
A key driver in the data center market has been the broad adoption of cloud computing, which enables organizations to make use of data storage and computing power via the internet. Users can purchase these services via a subscription model, allowing them to rapidly scale up their usage with ease. To offer these services, leading providers such as Microsoft Azure and Amazon Web Services (AWS) operate vast facilities known as hyperscale data centers, which generally exceed 1,000 square meters. A second factor has been the adoption of emerging technologies such as AI (artificial intelligence) and the IoT (internet of things), which have contributed to a surge in global data use, and thus increased demand on data center infrastructure.Northern Virginia remains the world’s largest market
Hyperscale operators have generally grouped around several key markets with favorable conditions regarding local infrastructure, energy costs, proximity to end-users, and the price of land. The Northern Virginia region is undoubtedly the world’s most important data center hub, offering the most inventory of any region, though also ranking among the most expensive, pushing operators to consider alternative markets. Another key consideration is energy efficiency, with the industry under pressure to deliver sustainability targets. Although many providers do not publish efficiency metrics, survey data indicates that efficiency gains across the market have leveled off in recent years, with further improvements requiring significant investment. Many industry players are exploring nuclear energy as a solution, with small, on-site nuclear reactors known as Small Modular Reactors (SMRs) able to secure energy independence.
