Africa Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 0.69 Thousand MW |
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Market Volume (2029) | 1.23 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 12.34 % |
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Largest Share by Country | South Africa |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Africa Data Center Market Analysis
The Africa Data Center Market size is estimated at 0.69 thousand MW in 2024, and is expected to reach 1.23 thousand MW by 2029, growing at a CAGR of 12.34%. Further, the market is expected to generate colocation revenue of USD 750.2 Million in 2024 and is projected to reach USD 1,709.6 Million by 2029, growing at a CAGR of 17.91% during the forecast period (2024-2029).
USD 740.24 Million
Market Size in 2024
USD 1,709.6 Million
Market Size in 2029
35%
CAGR (2017-2023)
17.9%
CAGR (2024-2029)
IT Load Capacity
685.76 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 1,226.8 MW by 2029. By 2025, Africa is expected to account for more than 600 million mobile connections, with 65% of them through smartphones.
Total Raised Floor Space
Sq. Ft. 2.76 M
Volume, Raised Floor Space, 2024
The total raised floor area in the region is expected to increase to 5.2 million sq. ft by 2029. Due to the increased trend of online shopping, digital payments, gaming on smartphones region would witness growth in data centers.
Installed Racks
138,045
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 260,783 units by 2029. South Africa is expected to house the maximum number of racks by 2029. Africa is expected to have around 650 million internet users in 2024.
# of DC Operators & DC Facilities
27 and 45
Volume, DC Facilities, 2024
There are 45 colocation data center facilities in Africa. Increasing demand for cloud services, and rising government incentives for land are a few factors that have accelerated the growth of data center facilities in Africa.
Leading Market Player
28.9%
Market Share, Teraco Data Environments (Digital Realty), 2023
Teraco Data Environment led the market in 2023, with a share of 28.9%. The company has announced plans to launch a 30 MW hyperscale facility in Ekurhuleni, South Africa, east of Johannesburg, expected to assist in retaining market leadership.
Tier 3 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period
- Increasing developments in artificial intelligence, IoT, and blockchain technology across varying sectors, including telecom, cloud, and government, have contributed to the growing data consumption in Africa.
- Africa has more than 400 technology hubs across 93 cities in 42 countries. In 2022, the African start-ups raised about USD 4.8 billion through 1,000 deals, compared to about USD 4.33 billion raised across 820 rounds in 2021. These technology start-ups may require low latency and high-speed, uninterrupted internet and cloud facilities to ensure continuous customer service. The increasing demand for better infrastructure may fuel the demand for more IT load capacity and more Tier 3 and 4-certified data center facilities.
- The long-term growth vision is better suited to set up at least Tier 3-certified data centers to cover the initial high cost of establishing the facilities. However, Tier 1 & 2 facilities were losing traction, given the limited power availability. Hence, to ensure the longevity of investments and tackle the increasing demand for faster and more reliable data storage and processing facilities, companies are focusing on constructing Tier 3 and 4 facilities.
- Tier 4 data centers offer higher bandwidth speed, low latency, better connectivity, and disaster recovery options. Thus, during the forecast period, the Tier 4 segment is expected to record a CAGR of 18.02%, compared to the Tier 3 segment at 14.40% and the Tier 1 & 2 segment at 3.26%.
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South Africa dominates the Data center market in Africa in 2023, and would continue to keep its dominance in forecasted period
- South Africa is the most prominent country for data centers in Africa since the country comprises about 42 million internet users. It also has internet penetration rates closer to 70%, and its adaptation to e-commerce and other demand-generating aspects is growing. This, in turn, has led data center operators to set up their data center facilities in the region to leverage the increasing demand for the facilities.
- South Africa held a market share of around 63.1%, followed by the Rest of African countries at 24.4%, and Nigeria accounted for 12.4% in 2021. The company that has strengthened its market share in South Africa is Teraco Data Environments (acquired by Digital Realty), which currently has a market share of 36.72% and operates at an IT load capacity of 150 MW. Through its subsidiaries, Medallion Communication Ltd and Teraco Data Environments, companies such as Digital Realty have announced plans to develop mega and massive data centers with IT load capacities of 160 MW and 110 MW during the forecast period.
- Cape Town has been ranked among the top smart cities worldwide for its IoT and real-time data analysis through sensor implementation. Smart cities create huge amounts of data owing to the varying smart services imparted to the citizens.
- The country is expected to witness more such smart cities as operators plan to extend the deployment of IoT-based devices. The Rest of Africa segment also comprises smart cities like Kigali, Rwanda, which have sensors to measure air quality, monitor the power grid's safety, and detect water leakages. Due to all the above factors, the South African data center market is expected to grow and register a CAGR of 15.68% over the forecast period.
Africa Data Center Market Trends
Online markets such as Jumia, Takealot, Kilimall, and others to boost Data centers in Africa
- Africa's data consumption increased from 0.6 GB/month in 2016 to 2.25 GB/month in 2022. It is expected to reach around 11.3 GB/month by 2029. A growing number of smartphone users using digital services such as streaming and digital payments are expected to boost data consumption in the future.
- As telecom companies plan to shut down their 2G and 3G services and strengthen their existing 4G services, bandwidth speeds may increase by around 52.5 Mbps by 2029. The implementation of 5G services in 43 African countries may lead to increased bandwidth speeds, which may also increase data consumption. The use of popular streaming services such as Netflix, Disney+, and Amazon Prime is expected to grow among the youth.
- The number of online shoppers in Africa increased from 138.9 million in 2016 to 387.8 million in 2022, which may reach around 519.8 million by 2025. Jumia, Takealot, Kilimall, and Konga are a few leading online marketplaces in the region. The growing user base for these digital services has resulted in increased data consumption. To provide seamless services to customers, companies may have to increase the number of racks from 64,735 in 2022 to 188,643 by 2029, with a CAGR of 15.4%, which may also increase the IT load capacity from 518.7 MW in 2022 to 1,226.2 MW by 2029.
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Increase use of digital wallets (M-Pesa) and use of OTT platforms, would increase data exchange leading to increase in data centers in the region.
- The availability of affordable Chinese smartphones, the removal of the general sales tax of 16% in countries such as Kenya, and the growing use of digitalization services by African youth for learning and other activities are boosting the number of smartphones in the region.
- In 2019, the total share of smartphone connections accounted for 44%, and with the growing adoption of technology, this share is expected to reach 75% by 2025. South Africa, Nigeria, and Egypt account for around 89 million, 163 million, and 75.6 million smartphone connections in the region, respectively. Around 60% of the users in Nigeria and 21% in South Africa use digital wallets such as M-Pesa for conducting transactions. Netflix, Disney+, and Amazon Prime are the leading OTT players in the region, with Netflix leading the African market with a subscriber base of around 6.4 million in 2022. The deployment of 5G services has been slow in Africa. These services have been launched in a few countries, such as Nigeria, South Africa, Botswana, Kenya, Mauritius, Madagascar, Seychelles, Tanzania, Togo, Zimbabwe, and Zambia.
- The African continent comprises around 54 countries, of which only 11 could implement 5G services. Hence, Africa is expected to have only 10% of 5G users by 2027. Telecom companies like Vodafone are focusing on strengthening their 4G services and plan to shut down their 2G and 3G services by 2026. To offer better services to users, companies may have to increase the number of racks, which may, in turn, increase the IT load capacity over the years.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Ongoing investment by telecom companies like Airtel in strengthening 4G and 5G services across Africa, would flourish the Data centers market
- Fiber optic cable companies such as Csquared and others boost Data Centers demand in Africa
- Adoption of high speed broadband services in Africa would boost the Data centers in the region.
Africa Data Center Industry Overview
The Africa Data Center Market is fragmented, with the top five companies occupying 31.39%. The major players in this market are Business Connexion (Pty) Ltd, Digital Realty Trust Inc., Equinix Inc., Teraco Data Environments (Digital Realty) and Vantage Data Centers LLC (sorted alphabetically).
Africa Data Center Market Leaders
Business Connexion (Pty) Ltd
Digital Realty Trust Inc.
Equinix Inc.
Teraco Data Environments (Digital Realty)
Vantage Data Centers LLC
Other important companies include Africa Data Centres (Cassava Technologies), Digital Parks Africa (Pty) Ltd, ONIX Data Center, Rack Centre Limited, Raxio Group BV, WIOCC (Open Access Data Centres).
*Disclaimer: Major Players sorted in alphabetical order.
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Africa Data Center Market News
- February 2023: The company has announced plans of opening a new data center in Senegal, the facility would be in close proximity to the cable landing station having 2Africa submarine cable.
- December 2022: With a USD 160 million data center investment in JOHANNESBURG, Equinix, Inc., a provider of digital infrastructure, wants to expand its presence on the African continent beyond its current locations in NIGERIA, GHANA, and Côte d'Ivoire. In mid-2024, the brand-new data center is anticipated to open in South Africa; JN1, a new 4.0 MW data center, will offer more than 20,000 gross square feet of colocation space and 690+ cabinets. Also, there will be two further phases of development. The fully completed 20.0 MW retail complex will offer more than 100,000 gross square feet of colocation space and 3,450+ cabinets.
- November 2022: A new hyperscale data center facility with a 30 MW critical power load has begun construction at Teraco's Isando Campus in Ekurhuleni, South Africa, east of Johannesburg. The JB5 plant will use the most up-to-date, ecologically friendly cooling and water management designs, and it is expected to finish by 2024.
Free with this Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
Africa Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 Nigeria
- 5.6.2 South Africa
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Data Center Size
- 6.1.1 Large
- 6.1.2 Massive
- 6.1.3 Medium
- 6.1.4 Mega
- 6.1.5 Small
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6.2 Tier Type
- 6.2.1 Tier 1 and 2
- 6.2.2 Tier 3
- 6.2.3 Tier 4
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6.3 Absorption
- 6.3.1 Non-Utilized
- 6.3.2 Utilized
- 6.3.2.1 By Colocation Type
- 6.3.2.1.1 Hyperscale
- 6.3.2.1.2 Retail
- 6.3.2.1.3 Wholesale
- 6.3.2.2 By End User
- 6.3.2.2.1 BFSI
- 6.3.2.2.2 Cloud
- 6.3.2.2.3 E-Commerce
- 6.3.2.2.4 Government
- 6.3.2.2.5 Manufacturing
- 6.3.2.2.6 Media & Entertainment
- 6.3.2.2.7 Telecom
- 6.3.2.2.8 Other End User
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6.4 Country
- 6.4.1 Nigeria
- 6.4.2 South Africa
- 6.4.3 Rest of Africa
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 Africa Data Centres (Cassava Technologies)
- 7.3.2 Business Connexion (Pty) Ltd
- 7.3.3 Digital Parks Africa (Pty) Ltd
- 7.3.4 Digital Realty Trust Inc.
- 7.3.5 Equinix Inc.
- 7.3.6 ONIX Data Center
- 7.3.7 Rack Centre Limited
- 7.3.8 Raxio Group BV
- 7.3.9 Teraco Data Environments (Digital Realty)
- 7.3.10 Vantage Data Centers LLC
- 7.3.11 WIOCC (Open Access Data Centres)
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, AFRICA, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), AFRICA, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, AFRICA, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, AFRICA, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, AFRICA, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, AFRICA, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, AFRICA, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, AFRICA, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, AFRICA, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, AFRICA, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, AFRICA, 2017 - 2029
- Figure 12:
- VOLUME OF DATA CENTER SIZE, MW, AFRICA, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF DATA CENTER SIZE, %, AFRICA, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF LARGE, MW, AFRICA, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF LARGE, MW, DATA CENTER SIZE, %, AFRICA, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF MASSIVE, MW, AFRICA, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF MASSIVE, MW, DATA CENTER SIZE, %, AFRICA, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF MEDIUM, MW, AFRICA, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF MEDIUM, MW, DATA CENTER SIZE, %, AFRICA, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF MEGA, MW, AFRICA, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF MEGA, MW, DATA CENTER SIZE, %, AFRICA, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF SMALL, MW, AFRICA, 2017 - 2029
- Figure 23:
- VOLUME SHARE OF SMALL, MW, DATA CENTER SIZE, %, AFRICA, 2017 - 2029
- Figure 24:
- VOLUME OF TIER TYPE, MW, AFRICA, 2017 - 2029
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, AFRICA, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, AFRICA, 2017 - 2029
- Figure 27:
- VOLUME SHARE OF TIER 1 AND 2, MW, TIER TYPE, %, AFRICA, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, AFRICA, 2017 - 2029
- Figure 29:
- VOLUME SHARE OF TIER 3, MW, TIER TYPE, %, AFRICA, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF TIER 4, MW, AFRICA, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF TIER 4, MW, TIER TYPE, %, AFRICA, 2017 - 2029
- Figure 32:
- VOLUME OF ABSORPTION, MW, AFRICA, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, AFRICA, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, AFRICA, 2017 - 2029
- Figure 35:
- VOLUME SHARE OF NON-UTILIZED, MW, ABSORPTION, %, AFRICA, 2017 - 2029
- Figure 36:
- VOLUME OF COLOCATION TYPE, MW, AFRICA, 2017 - 2029
- Figure 37:
- VOLUME SHARE OF COLOCATION TYPE, %, AFRICA, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF HYPERSCALE, MW, AFRICA, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF HYPERSCALE, MW, COLOCATION TYPE, %, AFRICA, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF RETAIL, MW, AFRICA, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF RETAIL, MW, COLOCATION TYPE, %, AFRICA, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF WHOLESALE, MW, AFRICA, 2017 - 2029
- Figure 43:
- VOLUME SHARE OF WHOLESALE, MW, COLOCATION TYPE, %, AFRICA, 2017 - 2029
- Figure 44:
- VOLUME OF END USER, MW, AFRICA, 2017 - 2029
- Figure 45:
- VOLUME SHARE OF END USER, %, AFRICA, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF BFSI, MW, AFRICA, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF CLOUD, MW, AFRICA, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF E-COMMERCE, MW, AFRICA, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF GOVERNMENT, MW, AFRICA, 2017 - 2029
- Figure 50:
- VOLUME SIZE OF MANUFACTURING, MW, AFRICA, 2017 - 2029
- Figure 51:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, AFRICA, 2017 - 2029
- Figure 52:
- VOLUME SIZE OF TELECOM, MW, AFRICA, 2017 - 2029
- Figure 53:
- VOLUME SIZE OF OTHER END USER, MW, AFRICA, 2017 - 2029
- Figure 54:
- VOLUME OF COUNTRY, MW, AFRICA, 2017 - 2029
- Figure 55:
- VOLUME SHARE OF COUNTRY, %, AFRICA, 2017 - 2029
- Figure 56:
- VOLUME SIZE OF NIGERIA, MW, NIGERIA, 2017 - 2029
- Figure 57:
- VOLUME SIZE OF SOUTH AFRICA, MW, SOUTH AFRICA, 2017 - 2029
- Figure 58:
- VOLUME SIZE OF REST OF AFRICA, MW, REST OF AFRICA, 2017 - 2029
- Figure 59:
- VOLUME SHARE OF MAJOR PLAYERS, %, AFRICA, 2022
Africa Data Center Industry Segmentation
Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. Nigeria, South Africa are covered as segments by Country.
- Increasing developments in artificial intelligence, IoT, and blockchain technology across varying sectors, including telecom, cloud, and government, have contributed to the growing data consumption in Africa.
- Africa has more than 400 technology hubs across 93 cities in 42 countries. In 2022, the African start-ups raised about USD 4.8 billion through 1,000 deals, compared to about USD 4.33 billion raised across 820 rounds in 2021. These technology start-ups may require low latency and high-speed, uninterrupted internet and cloud facilities to ensure continuous customer service. The increasing demand for better infrastructure may fuel the demand for more IT load capacity and more Tier 3 and 4-certified data center facilities.
- The long-term growth vision is better suited to set up at least Tier 3-certified data centers to cover the initial high cost of establishing the facilities. However, Tier 1 & 2 facilities were losing traction, given the limited power availability. Hence, to ensure the longevity of investments and tackle the increasing demand for faster and more reliable data storage and processing facilities, companies are focusing on constructing Tier 3 and 4 facilities.
- Tier 4 data centers offer higher bandwidth speed, low latency, better connectivity, and disaster recovery options. Thus, during the forecast period, the Tier 4 segment is expected to record a CAGR of 18.02%, compared to the Tier 3 segment at 14.40% and the Tier 1 & 2 segment at 3.26%.
| Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| Absorption | Non-Utilized | ||
| Utilized | By Colocation Type | Hyperscale | |
| Retail | |||
| Wholesale | |||
| Utilized | By End User | BFSI | |
| Cloud | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media & Entertainment | |||
| Telecom | |||
| Other End User | |||
| Country | Nigeria | ||
| South Africa | |||
| Rest of Africa |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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