Story image

Global data center construction to surge through 2020 – APAC fastest growing

15 Sep 2016

The global data center construction market is poised to grow at a CAGR of more than 12 percent from 2016 to 2020, the latest report from Technavio finds.

Rakesh Kumar Panda, a Technavio lead data center research expert, says the market is growing significantly with major contributions from cloud service providers (CSPs) and telecommunication and colocation service providers.

“The increased construction is facilitated by the increased demand for cloud-based service offerings and big data analytics driven by the stronger growth of data through connected devices in the form of the IoT,” says Rakesh.

Technavio segmented the market into three regions – the Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific (APAC). In 2015 they held around 45 percent, 34 percent and 21 percent shares of the market respectively.

In the report, Technavio found that of the three data center construction markets, APAC is the fastest growing. In fact, it is expected to reach USD 20 billion by 2020, growing at a CAGR of more than 17 percent, which is significantly more than the global average.

According to Technavio, the importance of data center operations among large enterprises and government agencies in countries across APAC is rapidly rising. There are already a few data centers being operated by CSPs and colocation vendors.

What’s more, APAC is experiencing the increase in data center construction from both local and global enterprises. Both Microsoft and AWS have opened data centers in India to address the growing customer base in the country.

“In various countries in APAC, data center constructions are also undertaken by global colocation and managed hosting service providers, government agencies, and telecommunication organizations to support the growing businesses and consumers,” says Rakesh.

The top vendors from around the world in the data center construction market featured in the report are:

  • Arup Group
  • Corgan Associates
  • DPR Construction
  • Gensler
  • HDR Architecture
Dropbox invests in hosting data inside Australia
Global collaboration platform Dropbox has announced it will now host Australian customer files onshore to support its growing base in the country.
Opinion: Meeting the edge computing challenge
Scale Computing's Alan Conboy discusses the importance of edge computing and the imminent challenges that lie ahead.
Alibaba Cloud discusses past and unveils ‘strategic upgrade’
Alibaba Group's Jeff Zhang spoke about the company’s aim to develop into a more technologically inclusive platform.
Protecting data centres from fire – your options
Chubb's Pierre Thorne discusses the countless potential implications of a data centre outage, and how to avoid them.
Opinion: How SD-WAN changes the game for 5G networks
5G/SD-WAN mobile edge computing and network slicing will enable and drive innovative NFV services, according to Kelly Ahuja, CEO, Versa Networks
TYAN unveils new inference-optimised GPU platforms with NVIDIA T4 accelerators
“TYAN servers with NVIDIA T4 GPUs are designed to excel at all accelerated workloads, including machine learning, deep learning, and virtual desktops.”
AMD delivers data center grunt for Google's new game streaming platform
'By combining our gaming DNA and data center technology leadership with a long-standing commitment to open platforms, AMD provides unique technologies and expertise to enable world-class cloud gaming experiences."
Inspur announces AI edge computing server with NVIDIA GPUs
“The dynamic nature and rapid expansion of AI workloads require an adaptive and optimised set of hardware, software and services for developers to utilise as they build their own solutions."