Data Centers

A data center comprises a network of storage and computing resources that enable the delivery of shared data and applications. The data center industry is currently undergoing radical transformation with the advent of AI, cloud computing, virtualization, software-defined networking, and hyper-converged infrastructure.

The commercialization of 5G technology is fueling the demand for IT infrastructures, ensuring efficient storage & transfer of data. The growing penetration of compute-intensive technologies is also propelling the data center demand to ensure real-time data transfer. Data center operators & researchers are increasingly focusing on the transformation and upgrading of IT facilities to cater to the constantly expanding end-user demands. Edge data centers that ensure fast data processing near customer locations are gaining increasing popularity, particularly in developed economies.

Drivers:

• Rapid digitalization of the BFSI sector is propelling the demand for data centers, enabling seamless real-time transactions. The growing use of online banking, mobile wallet, and smart card services is surging data volume, fueling data center adoption for data traffic management.
• Favorable government policies & support initiatives for the establishment of new data centers.
• Increasing adoption of AI and IoT will result in the generation of high data volumes, propelling the data center demand to store and manage data effectively. According to the Artificial Intelligence Index Report 2022, private investments in the AI sector was USD 93.5 billion, i.e., double the cumulative private investments in 2020.
• Focusing on the market forecast till 2030, the increasing internet penetration will be a key factor propelling the industry growth. With increasing reliance on the internet for banking, finance, education, e-learning & remote working, advanced data traffic management solutions will witness high demand.