Cloud Computing Technology Driving the Hyper Scale Data Center Market Worldwide

29 Aug


In recent times, Cloud computing has become a part of the new generation IT industry. This has fueled the global demand for hyper scale data center market. The increase in demanding customers, users, and market competition has compelled industry players to stay at the top of their game. Allied Market Research, added a report titled, “Hyperscale Data Center Market,” in which information relevant to the industry such as market size, share, and growth is included. The number of hyper scale data centers are on the rise and with new technological achievements, the trend is set to grow.

Hyperscale data centers to prioritize on efficiency gains to reduce energy

Data centers consume a large amount of energy and water. And with the growing number of such facilities worldwide, it is important to keep a track of the consumption of resources that are non-renewable. Scarcity of cost-effective energy and water has been observed as new data centers with high consumption have come up worldwide. It is not only a sustainability issue but investors are also shying away from investing in companies and organizations that neglect resource consumption. For investors, it is a risk factor to invest in companies and centers, which do not cater to this issue. 

The consumption rate of data centers is growing at a rapid pace. This is due to the increase in demand for everything with internet enabled. Facebook, Microsoft, Google, and other companies have led the path in data center efficiency gains. At such centers, efficiency gains are driven by constructing data centers at locations that enable free cooling. Free cooling, uses the outside air to cool the data center to reduce energy. 

Low latency vs data center efficiency  

Cloud services and content providers such as Facebook, Google, Netflix, Amazon, and others are looking to hand over content with minimum latency. Customers located at a place where a data center is not available have to get data from the nearest data center where the data is cached. This process increases latency and is an issue for companies such as Facebook and Google. 

To deliver content with low latency and efficiency of data centers is affected. Free cooling is effective in regions with suitable climatic conditions. In regions with high temperatures, free cooling is not very effective and water consumption is high.
Inertech LLC, data center infrastructure technology division of Aligned Energy, are making developments to keep the latency low along with efficiency gains. According to Inertech, data center cooling is a heat removal problem. The company has developed a technology that removes heat from data centers instead of blowing cold air into them. Free cooling, if implemented in the correct manner keeping in account of the geographical locations of data centers, can save up to 85 percent of their water consumption and up to 80 percent of energy consumed. This new approach by Inertech has delivered positive results and is set to be implemented in other data centers as well. 

Managing micro services essential for hyper scale data centers worldwide

Hyper scale data centers are designed for automation and efficiency that take advantage of a software-defined approach to centralized management and networking. Micro services is a design feature that goes down to specific application functions, which allows it to adjust the changing demand. The application of micro services on hyper scale reduces the energy consumed by the data center. David Wadhwani, president and CEO of AppDynamics said, “The world’s largest companies are eager to embrace micro services but are waiting for a scalable way of managing the potential impact on IT infrastructures.” 

It is a challenge to manage micro services and to address this issue AppDynamics has integrated their new Micro services iQ Performance Engine into their App iQ Platform. This will enable organizations to shift to hyper scale efficiently and economically. Micro services architecture is gaining popularity as data centers are taking care of this growth in the number of applications and services. It is very important to manage micro services in hyper scale data centers and such solutions are playing a vital role to do so. 

Acquisitions, expansions and collaborations on the rise to meet market requirements

There has been a significant growth in customer hyper-scale at hyper-demands. It becomes very difficult to meet these demands, which affect the overall business of the organization. The ever challenging competitive landscape and the number of new market players has encouraged companies to collaborate and acquire other companies to ensure efficient and satisfactory results. 

In August this year, CyrusOne, a global data center service provider announced the acquisition of a building in Sterling, VA which will develop into a sophisticated data center facility. On completion, the new project will feature prosperous connectivity options along with high bandwidth and several long-haul networks. The upcoming facility is located at a location with favorable climatic conditions, another crucial factor that affects the efficiency of such data centers. Kevin Timmons, chief technology office of the company quoted, “It is this level of hyper-scale at hyper-speed capability that is enabling today’s leading cloud and high-growth enterprise companies to meet unbridled demand for IT expansion.”

Asia-Pacific, an emerging market for the data center market

Today, North America dominates the hyper scale data center market. Better infrastructure, impeccable facilities, widespread connectivity, and high quality technical support have all contributed to the market growth in the region. Europe is not far behind as the trend to upgrade and focus on structural, modular data centers is emerging. High quality infrastructure in the region along with good climatic conditions has further supplemented market growth. 

Asia-Pacific will soon emerge as the front runner of the global hyper scale data center market. The sheer market size of Asia makes it one of the most attractive markets. India, China, Japan, and other nations in the region will soon see a wave of hyper scale data center facilities. This is due to expansion of the banking and the IT industry in the region. Development in the manufacturing sector will further drive the hyper scale data center market in the region. 

The demand for cloud computing, social media, online gaming, and the exponential growth in smartphone and tablet users have increased the application of hyper scale data centers in the IT & telecom sector.

Digvijay Deshmukh

Digvijay Deshmukh

Research Analyst at Allied Market Research

Digvijay Deshmukh is associated with Market Research industry for more than 5 years and possess strong expertise in market assessment, forecasting and consulting in ICT and Semiconductor industry. With his skilled proficiency in market research, Digvijay is actively involved in providing critical insights on business research to clients with his subject matter expertise. Various other sub-markets scrutinized include media and entertainment, HVAC, process control and automation, display technologies, telecom and IT, service industry, and power electronics among others. He is a part of multiple consulting assignments and is actively involved in commissioning, planning, execution, and delivery of projects to client’s expectations. His forte lies in business consulting, building analytical models, and trend analysis and forecasting.


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