North America Data Center Market Size
| Icons | Lable | Value |
|---|---|---|
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 15.93 Thousand MW |
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Market Volume (2029) | 25.76 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 10.09 % |
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Largest Share by Country | United States |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
North America Data Center Market Analysis
The North America Data Center Market size is estimated at 15.93 thousand MW in 2024, and is expected to reach 25.76 thousand MW by 2029, growing at a CAGR of 10.09%. Further, the market is expected to generate colocation revenue of USD 45,633.8 Million in 2024 and is projected to reach USD 107,300.1 Million by 2029, growing at a CAGR of 18.65% during the forecast period (2024-2029).
USD 45,633.76 Million
Market Size in 2024
USD 107,300.2 Million
Market Size in 2029
12.5%
CAGR (2017-2023)
18.7%
CAGR (2024-2029)
IT Load Capacity
15,931.6 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and high penetration rate for internet usage, social media engagement, mobile connections, online shopping, and digital payments, which would increase IT load capacity.
Total Raised Floor Space
Sq. Ft. 49.84 M
Volume, Raised Floor Space, 2024
The total raised floor area in the region is expected to increase to 88.9 million sq. ft by 2029. Growing investment in quantum computing, artificial intelligence (AI), and life sciences and health would increase the market demand.
Installed Racks
2,492,259
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 4,447,348 units by 2029. The United States is expected to house the maximum number of racks by 2029.
# of DC Operators & DC Facilities
143 and 1,016
Volume, DC Facilities, 2024
There are 1,016 colocation data center facilities in North America. The United States holds the highest share in the region and is expected to exhibit the fastest growth. 5G deployment is increasing demand for data centers in North America.
Leading Market Player
11.4%
Market Share, Switch, 2023
Switch has five data center facilities in the United States. These facilities have 5.70 million sq. ft net rentable capacity and 1,590 MW IT load capacity with average racks of more than 50,000 units.
Tier 3 data center accounted for majority share in terms of volume in 2023, Tier 4 is fastest growing segment
- The tier 4 data center reached 5881.0 MW in 2023 and is further projected to exhibit a CAGR of 13.46%, surpassing 12547.2 MW by 2029.
- Over the coming years, demand for facilities in tiers 1 and 2 will steadily decrease, but growth will continue due to protracted and unpredictable outages. While there is already an adequate supply of retail colocation in these tier 1 and tier 2 locations, large-scale projects are also driving demand to fulfil growing hyperscale cloud requirements as the demand for lower latency and greater efficiency develops.
- The majority of clients will eventually move to tier 3 and tier 4 facilities due to the increasing demand for data processing, storing, and analysis. The tier 3 type held the majority of the market in 2022 due to the significant benefits of its features. Most tier 3 data centers in the area are located in North America, providing numerous channels for power and cooling as well as a high level of redundancy. These data centers have an uptime of about 99.982%, which equals 1.6 hours of downtime annually. Additionally, it is anticipated that the expansion in tier 3 data centers will continue to increase with the increased usage of edge and cloud connectivity.
- The tier 4 type is anticipated to increase at a CAGR of 15.51%. To benefit from total fault tolerance and component redundancy, several industrialized nations are working on adopting the Tier 4 certification. In 2022, there were 81 tier 4 data centers in North America. Tier 4 data centers will grow dramatically in the coming years. This is because more companies are offering cloud-based services, which has prompted more companies to build facilities to offer colocation space with the greatest technology.
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United States hold majority market in the region and will continue to dominate during forecast period
- Over the past few years, there has been a sharp increase in the demand for data centers in the area due to growing cloud adoption and rising data generation. The major drivers of the expansion of the data center market in North America are the rising popularity of IoT, the development of 5G networks, the COVID-19 pandemic, and the demand for high-speed streaming of online entertainment content.
- The total IT load capacity of hyper-scale colocation data centers in North America was 4,481.2 megawatts (MW), and by 2029, it is expected to reach 1,2047.5 MW with a CAGR of 14.63%. By 2023, there will be more than 13,000 MW of capacity under development, and by 2029, there will be more than 25,000 MW. More than half this new capacity is being added in the United States by mega data centers, followed by massive-size data centers. The size and quantity of user requirements for data centers kept expanding.
- Several sizable businesses inked leases totaling more than 60 MW, some even over 100 MW. Most big hyper scalers are responsible for a net absorption percentage of more than 70%, which will rise by more than 5% by 2029. The hyperscale data center market in the United States is predicted to grow the fastest in North America. Recent economic incentives and tax benefits have been key factors in constructing the country's data center.
- Canada is a growing nation in the data center industry. A supportive regulatory environment and cool climate support the data center market and are ideal for operations. The Internet of Things (IoT), cloud computing, and Big Data drive Canada's demand for data storage and processing capabilities. As a result, new facilities are being built, and old ones are being expanded.
North America Data Center Market Trends
The expansion of network coverage and the continued high adoption of 4G and 5G expansion to drive market growth
- The unlimited data rates, enhanced 5G network coverage, and increased network capacity drew more and more new 5G subscribers in 2021. With the adoption of gaming, XR, and video-based apps anticipated to rise, the amount of data created per minute of use was expected to increase considerably. To satisfy users, these experiences required greater video resolutions, more uplink traffic, and data from devices offloaded to cloud computing resources. North America was projected to have the highest 5G subscription penetration, reaching 90%, by 2028 compared to all other areas.
- Popular cities with early 5G rollouts set the pace for traffic growth during the forecast period in 2021. 5G was expected to account for more than 10% of mobile data traffic in the upcoming years. The expansion of coverage and the continued high adoption of 4G, which was related to an increase in smartphone subscriptions and average data usage per smartphone, were driving traffic growth. For instance, as of 2021, there were about 328 million smartphone owners in the United States, and by 2027, there will be 358 million smartphone subscriptions in North America.
- The use of high bandwidth services was made possible by the expansion of LTE availability. About 75% of people who used mobile services visited the internet on a weekly basis, with more than half of them doing so from their mobile devices. The second-largest category was social networking, with more than 60% of mobile users visiting a social networking site at least once each week. The usage equated to 15 to 30 minutes of daily video streaming in 2021. Increased traffic was also expected to result from social networking and other apps. In 2021, monthly mobile data traffic was anticipated to reach 6 GB and increase to more than 30 GB by 2029.
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5G network expansion and increased sales of 5G smartphones will boost the market growth
- Smartphone adoption has some room to expand. By the end of 2021, smartphones accounted for 83% of mobile connections in North America. With 30 million additional smartphone connections anticipated by 2025, the migration away from legacy networks (2G and 3G) will continue to support smartphone adoption in the coming years. The expansion of mobile data traffic in North America, which was anticipated to more than triple by 2027, will continue to depend heavily on rising smartphone penetration. Since Apple unveiled the first iPhone in 2007, the popularity of smartphones has skyrocketed. By 2016, it was expected that 43.5% of all Americans would own an iPhone.
- In the United States, where 5G made up approximately one out of every four mobile connections in 2021, 5G was starting to become widely used. The economic recovery following the pandemic, increased sales of 5G smartphones, and general marketing initiatives had all helped increase momentum. Consumer interest in upgrading to 5G was increasing, and current 5G customers were showing an increased interest in expanding their 5G plans to include content and services like streaming video, music, gaming, live sports, and cloud storage. This was expected to encourage more people to purchase smartphones, increasing the number of smartphone users.
- Almost 90% of people use the internet in North America. In the United States and Canada, Facebook had a combined 266 million monthly active users (MAU). This demonstrated the widespread use of smartphones in the region, which essentially necessitates the use of data centers for storage since they demand real-time processing of sizable data chunks. A rise in data centers was expected to be seen in the region during the anticipated period as a result of good smartphone growth in the region.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Phasing out of 2G and 3G network and adoption of 4G and 5G by consumers to boost market growth
- Surge in adoption of FTTH technology boost the data center market
- Government initiatives to promote digital infrastructure to drive the growth of data centers in the country
North America Data Center Industry Overview
The North America Data Center Market is fragmented, with the top five companies occupying 24.20%. The major players in this market are CoreSite (America Tower Corporation), CyrusOne Inc., Digital Realty Trust Inc., Equinix Inc. and NTT Ltd (sorted alphabetically).
North America Data Center Market Leaders
CoreSite (America Tower Corporation)
CyrusOne Inc.
Digital Realty Trust Inc.
Equinix Inc.
NTT Ltd
Other important companies include Cologix Inc., Cyxtera Technologies, Edgecore (Partners Group), Flexential Corp., Quality Technology Services, Switch, Vantage Data Centers LLC.
*Disclaimer: Major Players sorted in alphabetical order.
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North America Data Center Market News
- January 2023: Construction has begun on a new facility for US data center operator EdgeCore Digital Infrastructure in Santa Clara, California. On the intersection of Juliet Lane and Laurelwood Road, the first of two planned data centers has officially begun construction, according to the business. The two-story SV01 will have 255,200 square feet of space and provide 36 Megawatts.
- December 2022: DigitalBridge Group, Inc. and IFM Investors announced completing their previously announced transaction in which funds affiliated with the investment management platform of DigitalBridge and an affiliate of IFM Investors acquired all outstanding common shares of Switch, Inc. for USD approximately USD 11 billion, including the repayment of outstanding debt.
- October 2022: Three additional data centers in Charlotte, Nashville, and Louisville have been made available to Flexential's cloud customers, according to the supplier of data center colocation, cloud computing, and connectivity. By the end of the year, clients will have access to more than 220MW of hybrid IT capacity spread across 40 data centers in 19 markets, which is well aligned with Flexential's 2022 ambition to add 33MW of new, sustainable data center development projects.
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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.
North America 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 Canada
- 5.6.2 Mexico
- 5.6.3 United States
- 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 Canada
- 6.4.2 Mexico
- 6.4.3 United States
- 6.4.4 Rest of North America
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
-
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 Cologix Inc.
- 7.3.2 CoreSite (America Tower Corporation)
- 7.3.3 CyrusOne Inc.
- 7.3.4 Cyxtera Technologies
- 7.3.5 Digital Realty Trust Inc.
- 7.3.6 Edgecore (Partners Group)
- 7.3.7 Equinix Inc.
- 7.3.8 Flexential Corp.
- 7.3.9 NTT Ltd
- 7.3.10 Quality Technology Services
- 7.3.11 Switch
- 7.3.12 Vantage Data Centers LLC
- 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, NORTH AMERICA, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), NORTH AMERICA, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, NORTH AMERICA, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, NORTH AMERICA, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, NORTH AMERICA, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, NORTH AMERICA, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, NORTH AMERICA, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, NORTH AMERICA, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, NORTH AMERICA, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, NORTH AMERICA, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, NORTH AMERICA, 2017 - 2029
- Figure 12:
- VOLUME OF DATA CENTER SIZE, MW, NORTH AMERICA, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF DATA CENTER SIZE, %, NORTH AMERICA, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF LARGE, MW, NORTH AMERICA, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF LARGE, MW, DATA CENTER SIZE, %, NORTH AMERICA, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF MASSIVE, MW, NORTH AMERICA, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF MASSIVE, MW, DATA CENTER SIZE, %, NORTH AMERICA, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF MEDIUM, MW, NORTH AMERICA, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF MEDIUM, MW, DATA CENTER SIZE, %, NORTH AMERICA, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF MEGA, MW, NORTH AMERICA, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF MEGA, MW, DATA CENTER SIZE, %, NORTH AMERICA, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF SMALL, MW, NORTH AMERICA, 2017 - 2029
- Figure 23:
- VOLUME SHARE OF SMALL, MW, DATA CENTER SIZE, %, NORTH AMERICA, 2017 - 2029
- Figure 24:
- VOLUME OF TIER TYPE, MW, NORTH AMERICA, 2017 - 2029
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, NORTH AMERICA, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, NORTH AMERICA, 2017 - 2029
- Figure 27:
- VOLUME SHARE OF TIER 1 AND 2, MW, TIER TYPE, %, NORTH AMERICA, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, NORTH AMERICA, 2017 - 2029
- Figure 29:
- VOLUME SHARE OF TIER 3, MW, TIER TYPE, %, NORTH AMERICA, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF TIER 4, MW, NORTH AMERICA, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF TIER 4, MW, TIER TYPE, %, NORTH AMERICA, 2017 - 2029
- Figure 32:
- VOLUME OF ABSORPTION, MW, NORTH AMERICA, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, NORTH AMERICA, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, NORTH AMERICA, 2017 - 2029
- Figure 35:
- VOLUME SHARE OF NON-UTILIZED, MW, ABSORPTION, %, NORTH AMERICA, 2017 - 2029
- Figure 36:
- VOLUME OF COLOCATION TYPE, MW, NORTH AMERICA, 2017 - 2029
- Figure 37:
- VOLUME SHARE OF COLOCATION TYPE, %, NORTH AMERICA, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF HYPERSCALE, MW, NORTH AMERICA, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF HYPERSCALE, MW, COLOCATION TYPE, %, NORTH AMERICA, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF RETAIL, MW, NORTH AMERICA, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF RETAIL, MW, COLOCATION TYPE, %, NORTH AMERICA, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF WHOLESALE, MW, NORTH AMERICA, 2017 - 2029
- Figure 43:
- VOLUME SHARE OF WHOLESALE, MW, COLOCATION TYPE, %, NORTH AMERICA, 2017 - 2029
- Figure 44:
- VOLUME OF END USER, MW, NORTH AMERICA, 2017 - 2029
- Figure 45:
- VOLUME SHARE OF END USER, %, NORTH AMERICA, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF BFSI, MW, NORTH AMERICA, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF CLOUD, MW, NORTH AMERICA, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF E-COMMERCE, MW, NORTH AMERICA, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF GOVERNMENT, MW, NORTH AMERICA, 2017 - 2029
- Figure 50:
- VOLUME SIZE OF MANUFACTURING, MW, NORTH AMERICA, 2017 - 2029
- Figure 51:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, NORTH AMERICA, 2017 - 2029
- Figure 52:
- VOLUME SIZE OF TELECOM, MW, NORTH AMERICA, 2017 - 2029
- Figure 53:
- VOLUME SIZE OF OTHER END USER, MW, NORTH AMERICA, 2017 - 2029
- Figure 54:
- VOLUME OF COUNTRY, MW, NORTH AMERICA, 2017 - 2029
- Figure 55:
- VOLUME SHARE OF COUNTRY, %, NORTH AMERICA, 2017 - 2029
- Figure 56:
- VOLUME SIZE OF CANADA, MW, CANADA, 2017 - 2029
- Figure 57:
- VOLUME SIZE OF MEXICO, MW, MEXICO, 2017 - 2029
- Figure 58:
- VOLUME SIZE OF UNITED STATES, MW, UNITED STATES, 2017 - 2029
- Figure 59:
- VOLUME SIZE OF REST OF NORTH AMERICA, MW, REST OF NORTH AMERICA, 2017 - 2029
- Figure 60:
- VOLUME SHARE OF MAJOR PLAYERS, %, NORTH AMERICA, 2022
North America 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. Canada, Mexico, United States are covered as segments by Country.
- The tier 4 data center reached 5881.0 MW in 2023 and is further projected to exhibit a CAGR of 13.46%, surpassing 12547.2 MW by 2029.
- Over the coming years, demand for facilities in tiers 1 and 2 will steadily decrease, but growth will continue due to protracted and unpredictable outages. While there is already an adequate supply of retail colocation in these tier 1 and tier 2 locations, large-scale projects are also driving demand to fulfil growing hyperscale cloud requirements as the demand for lower latency and greater efficiency develops.
- The majority of clients will eventually move to tier 3 and tier 4 facilities due to the increasing demand for data processing, storing, and analysis. The tier 3 type held the majority of the market in 2022 due to the significant benefits of its features. Most tier 3 data centers in the area are located in North America, providing numerous channels for power and cooling as well as a high level of redundancy. These data centers have an uptime of about 99.982%, which equals 1.6 hours of downtime annually. Additionally, it is anticipated that the expansion in tier 3 data centers will continue to increase with the increased usage of edge and cloud connectivity.
- The tier 4 type is anticipated to increase at a CAGR of 15.51%. To benefit from total fault tolerance and component redundancy, several industrialized nations are working on adopting the Tier 4 certification. In 2022, there were 81 tier 4 data centers in North America. Tier 4 data centers will grow dramatically in the coming years. This is because more companies are offering cloud-based services, which has prompted more companies to build facilities to offer colocation space with the greatest technology.
| 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 | Canada | ||
| Mexico | |||
| United States | |||
| Rest of North America |
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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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