Story image

Expert says data centres are investments with almost guaranteed profits

17 Sep 18

Data is the backbone of today’s world and that’s good news for data centres and the people who work within them.

A report from real estate and investment services company CBRE found that last year investments in data centres reached US$20 billion, triple 2016’s total and quadruple 2015’s effort.

With staggering investments from the big players like Amazon, Microsoft, and Google, and the growing prominence of cloud computing, mobile payments, and IoT, this growth is showing no signs of slowing.

In law firm White & Case’s report on data centres, co-author James Dosworth asserts that it is “widely reported that 90 percent of the world's data was created in the last two years, which gives you an idea of the growth in [data centres]."

Technologies that are still developing like video streaming, connected cars, and IoT all require data centres that able to support billions of internet-connected devices. Meanwhile, companies in the midst of digital transformation and beyond are demanding data centres to store and manage their information.

A report from Digital Realty forecasts that by 2025, data centres in the UK alone will be worth $135 billion.

"Data centres create this value by providing and managing the infrastructure, connectivity and services that underpin success across the full range of economic activity," reads Digital Realty's report.

"This includes not only I.T. and financial services, such as powering high-speed trading platforms and cloud storage services, but also other sectors, such as agriculture, where data allows more precise use of pesticides, better adaptation to weather trends and automation such as drones to survey crops.”


The Cisco Visual Networking Index provides a rough idea of how much data the world will be consuming by 2021:

  • Annual global IP traffic will reach 3.3 zettabytes by 2021. In 2016, global IP traffic was 1.2 ZB per year or 96 exabytes (one billion gigabytes) per month.
  • Global IP traffic will increase nearly threefold over the next five years, and will have increased 127-fold from 2005 to 2021.

It’s clear then that data centres must grow in parallel, pushing them forward as an attractive investment. According to Viderium CEO Ross Archer, data centres blend the traditional with the novel. They offer long-term contracts and recurring revenues like conventional property, but they come with the added bonus of rapid growth prospects.

"As technical advancements continue to come from Silicon Valley and beyond, the demand for data centres, storage, and secure, encrypted transactions is rapidly growing," says Archer.

"One of the biggest sectors in focus at the moment is tech and data facilities, and because of this, we envision we will continue to see investment into these areas growing exponentially."

Chayora announces a strategic partnership with Sinnet Technology
Chayora, a Hong Kong-based data center infrastructure company, announced that it has entered into a strategic partnership with Beijing Sinnet Technology.
Commvault fully integrates backup with Cisco Hyperflex
Its IntelliSnap technology has been validated to work with Cisco HyperFlex hyper-converged systems without the need for third-party tools.
Huawei continues 5G trials despite ongoing concern
Huawei completed the 5G NR test at 2.6GHz spectrum in the 5G trial organised by the IMT-2020 (5G) Promotion Group. 
Experts comment on record 772mil-user data breach
Dubbed “Collection #1”, the data set contains emails and passwords with over a billion unique combinations of email addresses and passwords.
Top risk facing organisations? Why, it’s an IT talent famine
For some time there has been talk about how the IT industry is crying out for new talent and skills, which a lot of people have glossed over. But now Gartner says it is a harsh reality.
HPE invests in services with new A/NZ execs 
With IT services spend growing in Australia and New Zealand, HPE is appointing execs for software and technology services in the South Pacific.
Inspur’s server delivery to Baidu claims new record
After an urgent request, Inspur delivered a shipment of rack scale servers of more than 10,000 nodes to a Baidu data centre - equating to one server delivered every 2.88 seconds.
LISA Double Access fibre management system to launch at Cisco Live
“In a data centre, the protection of the fibre is key, which is exactly what the LISA Double Access offers customers.”