South Africa Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 434.9 MW |
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Market Volume (2029) | 828.9 MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 13.77 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
South Africa Data Center Market Analysis
The South Africa Data Center Market size is estimated at 434.9 MW in 2024, and is expected to reach 828.9 MW by 2029, growing at a CAGR of 13.77%. Further, the market is expected to generate colocation revenue of USD 471 Million in 2024 and is projected to reach USD 1,103.3 Million by 2029, growing at a CAGR of 18.56% during the forecast period (2024-2029).
USD 471.01 Million
Market Size in 2024
USD 1,103.34 Million
Market Size in 2029
37.2%
CAGR (2017-2023)
18.6%
CAGR (2024-2029)
IT Load Capacity
434.86 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to achieve 828.9 MW by 2029. Teraco (Digital Realty), NTT Ltd, Vantage Data Centers, and Equinix are constructing DC facilities in the region.
Total Raised Floor Space
Sq. Ft. 2.26 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 4.4 million sq. ft by 2029. 56% of consumer internet traffic was generated from mobile by 2022, and the trend has increased in 2023 creating demand for DC facilities.
Installed Racks
113,177
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 220,200 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029. The growing establishment of homegrown startups would increase the demand.
# of DC Operators & DC Facilities
12 and 31
Volume, DC Facilities, 2024
There are 31 colocation data center facilities in South Africa. Some factors contributing to the growth of the data center market in the country are the adoption of 5G, smartphone penetration, and rising digitization.
Leading Market Player
37.9%
Market Share, Teraco Data Environments (Digital Realty), 2023
Teraco Data Environments (Digital Realty) was the leading player in the South African market in the historical period and is expected to roll out a 7-data center facility with a total capacity of 150 MW during the forecast period.
Tier 3 data center accounted for majority share in terms of volume in 2023, it will continue its dominance during forecast period
- Tier 1 & 2 facilities are losing their demand as they cannot fulfill the growing uninterrupted services of businesses. The growing number of global conglomerates has given rise to business continuity services 24/7, which has gradually shifted the preference toward tier 3 and tier 4 data centers.
- Tier 4 data centers are expected to witness the highest growth of 20.41%, followed by Tier 3 data centers with 12.87% growth till 2029. Implementing such standards in the facilities ensures minimal downtown while increasing the efficiency of the facilities.
- Among the major industries, BFSI and media & entertainment are expected to majorly adopt tier 3 facilities owing to the growing acceptance of solutions like bitcoin, digital cards, biometric payments, buy now pay later (BNPL), and open banking for various financial transactions in their daily lives, in addition to being aware of these technologies.
- According to Mastercard's New Payments Index 2022, 95% of South Africans used one or more developing digital payment methods in 2021. In Q2 and Q3, 67% of consumers made an online purchase, 66% bought something through a mobile app, and 49% purchased a service through an online subscription.
- In media & entertainment, the average time spent on social media in South Africa has been rising yearly since 2017, peaking at 2 hours and 47 minutes in that year and reaching 3 hours and 37 minutes by Q3 2021.
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South Africa Data Center Market Trends
The growing average data volume per subscription and the rising subscription numbers for smartphones to boost market growth
- The total data traffic per smartphone in the country was 3.6 GB in 2022, and it is expected to witness a CAGR of 24.8% during the forecast period to reach a value of 17.2 GB by 2029.
- In South Africa, 35% of consumer internet traffic was mobile in 2017, and 56% of consumer internet traffic is expected to be mobile by 2022 due to the consumption of data by multiple end users. For instance, in 2022, online retail in South Africa reached 35%, bringing the total amount of online retail in South Africa to SAR 55 billion. This followed a 40% increase in 2021, which brought the amount to SAR 42.3 billion.
- The growing average data volume per subscription and the rising subscription numbers for smartphones of which are predominantly driven by a rise in video content consumption. For instance, video content exceeds half of South Africa's consumer internet traffic by the end of 2016. By 2022, it reached 50 billion minutes of video content across the Internet each month, which is 19,182 minutes of video streamed or downloaded every second, as most of the video content is streaming through smartphones only.
- Since the needs of the end-users are changing and the need for more data storage is resulting in the need for more servers in the data centers. Thus, contributing to the growth of the data center market in South Africa. Because end users' expectations are evolving and there is a growing demand for greater data storage, data centers require additional servers, hence, contributing to the expansion of South Africa’s data center market.
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Increasing mobile data subscriptions, adoption of internet and rising use of smartphone to boost market growth
- The total number of smartphone users in the country was 25.5 million in 2022 and is expected to witness a CAGR of 4.7% during the forecast period to reach a value of 35.2 million by 2029.
- Digital usage is expanding rapidly in South Africa. Consumer behavior has been impacted by the quick adoption of the internet and smartphone technology in various businesses. For instance, Smartphone penetration in South Africa went from 81.7% in 2018 to 91.2% in 2019.
- Mobile data subscriptions increased by 18.8%, from 65 million in 2018 to 78 million in 2019. Over five years, there was a 13.9% growth. This suggests a rise in number of smartphone users.
- At the start of 2022, there were 108.6 million cellular mobile connections in South Africa, which is equivalent to 179.8% of its population.
- The rising use of smartphones results in a constant increase in data, necessitating a growing amount of storage space to accommodate this uncontrollable flow of data. South Africa's market's preference for smartphones necessitates the expansion of data centers' capabilities in order to handle the increase in data. Smartphones generate a lot of data, which necessitates real-time processing and analysis. The data centers must manage the sheer amount of data. Thus, the requirement for extra racks in South African data centers may increase as the number of smartphone users rises.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Adoption of 5G network and increase 5G connections to boost market growth
- To promote digitization the government launched the South Africa Connect (SA Connect) initiative boosting market growth
- Increase FTTH/B subscriptions and fixed internet speeds in South Africa to boost market growth
South Africa Data Center Industry Overview
The South Africa Data Center Market is moderately consolidated, with the top five companies occupying 48.86%. The major players in this market are Business Connexion (Pty) Ltd, Equinix Inc., NTT Ltd, Teraco Data Environments (Digital Realty) and Vantage Data Centers LLC (sorted alphabetically).
South Africa Data Center Market Leaders
Business Connexion (Pty) Ltd
Equinix Inc.
NTT Ltd
Teraco Data Environments (Digital Realty)
Vantage Data Centers LLC
Other important companies include Africa Data Centres (Cassava Technologies), Digital Parks Africa (Pty) Ltd, MTN (PTY) LTD (MTN GROUP LTD), RSAWEB, WIOCC (Open Access Data Centres), Xneelo (Pty) Ltd.
*Disclaimer: Major Players sorted in alphabetical order.
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South Africa Data Center Market News
- 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.
- August 2022: Africa Data Centres, a subsidiary of the pan-Asian Cassava Technologies Group, a second data center was planned to be built in Johannesburg, South Africa, from 10MW to 40MW of IT load and is expected to complete by 2025.
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.
South 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 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 Hotspot
- 6.1.1 Johannesburg
- 6.1.2 Rest of South Africa
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Mega
- 6.2.5 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
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 Equinix Inc.
- 7.3.5 MTN (PTY) LTD (MTN GROUP LTD)
- 7.3.6 NTT Ltd
- 7.3.7 RSAWEB
- 7.3.8 Teraco Data Environments (Digital Realty)
- 7.3.9 Vantage Data Centers LLC
- 7.3.10 WIOCC (Open Access Data Centres)
- 7.3.11 Xneelo (Pty) Ltd
- 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, SOUTH AFRICA, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), SOUTH AFRICA, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, SOUTH AFRICA, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, SOUTH AFRICA, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, SOUTH AFRICA, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, SOUTH AFRICA, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, SOUTH AFRICA, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, SOUTH AFRICA, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, SOUTH AFRICA, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, SOUTH AFRICA, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH AFRICA, 2017 - 2029
- Figure 12:
- VOLUME OF HOTSPOT, MW, SOUTH AFRICA, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, SOUTH AFRICA, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF JOHANNESBURG, MW, SOUTH AFRICA, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF JOHANNESBURG, MW, HOTSPOT, %, SOUTH AFRICA, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF REST OF SOUTH AFRICA, MW, SOUTH AFRICA, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF REST OF SOUTH AFRICA, MW, HOTSPOT, %, SOUTH AFRICA, 2017 - 2029
- Figure 18:
- VOLUME OF DATA CENTER SIZE, MW, SOUTH AFRICA, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF DATA CENTER SIZE, %, SOUTH AFRICA, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF LARGE, MW, SOUTH AFRICA, 2017 - 2029
- Figure 21:
- VOLUME SIZE OF MASSIVE, MW, SOUTH AFRICA, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF MEDIUM, MW, SOUTH AFRICA, 2017 - 2029
- Figure 23:
- VOLUME SIZE OF MEGA, MW, SOUTH AFRICA, 2017 - 2029
- Figure 24:
- VOLUME SIZE OF SMALL, MW, SOUTH AFRICA, 2017 - 2029
- Figure 25:
- VOLUME OF TIER TYPE, MW, SOUTH AFRICA, 2017 - 2029
- Figure 26:
- VOLUME SHARE OF TIER TYPE, %, SOUTH AFRICA, 2017 - 2029
- Figure 27:
- VOLUME SIZE OF TIER 1 AND 2, MW, SOUTH AFRICA, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, SOUTH AFRICA, 2017 - 2029
- Figure 29:
- VOLUME SIZE OF TIER 4, MW, SOUTH AFRICA, 2017 - 2029
- Figure 30:
- VOLUME OF ABSORPTION, MW, SOUTH AFRICA, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF ABSORPTION, %, SOUTH AFRICA, 2017 - 2029
- Figure 32:
- VOLUME SIZE OF NON-UTILIZED, MW, SOUTH AFRICA, 2017 - 2029
- Figure 33:
- VOLUME OF COLOCATION TYPE, MW, SOUTH AFRICA, 2017 - 2029
- Figure 34:
- VOLUME SHARE OF COLOCATION TYPE, %, SOUTH AFRICA, 2017 - 2029
- Figure 35:
- VOLUME SIZE OF HYPERSCALE, MW, SOUTH AFRICA, 2017 - 2029
- Figure 36:
- VOLUME SIZE OF RETAIL, MW, SOUTH AFRICA, 2017 - 2029
- Figure 37:
- VOLUME SIZE OF WHOLESALE, MW, SOUTH AFRICA, 2017 - 2029
- Figure 38:
- VOLUME OF END USER, MW, SOUTH AFRICA, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF END USER, %, SOUTH AFRICA, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF BFSI, MW, SOUTH AFRICA, 2017 - 2029
- Figure 41:
- VOLUME SIZE OF CLOUD, MW, SOUTH AFRICA, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF E-COMMERCE, MW, SOUTH AFRICA, 2017 - 2029
- Figure 43:
- VOLUME SIZE OF GOVERNMENT, MW, SOUTH AFRICA, 2017 - 2029
- Figure 44:
- VOLUME SIZE OF MANUFACTURING, MW, SOUTH AFRICA, 2017 - 2029
- Figure 45:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, SOUTH AFRICA, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF TELECOM, MW, SOUTH AFRICA, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF OTHER END USER, MW, SOUTH AFRICA, 2017 - 2029
- Figure 48:
- VOLUME SHARE OF MAJOR PLAYERS, %, SOUTH AFRICA, 2022
South Africa Data Center Industry Segmentation
Johannesburg are covered as segments by Hotspot. 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.
- Tier 1 & 2 facilities are losing their demand as they cannot fulfill the growing uninterrupted services of businesses. The growing number of global conglomerates has given rise to business continuity services 24/7, which has gradually shifted the preference toward tier 3 and tier 4 data centers.
- Tier 4 data centers are expected to witness the highest growth of 20.41%, followed by Tier 3 data centers with 12.87% growth till 2029. Implementing such standards in the facilities ensures minimal downtown while increasing the efficiency of the facilities.
- Among the major industries, BFSI and media & entertainment are expected to majorly adopt tier 3 facilities owing to the growing acceptance of solutions like bitcoin, digital cards, biometric payments, buy now pay later (BNPL), and open banking for various financial transactions in their daily lives, in addition to being aware of these technologies.
- According to Mastercard's New Payments Index 2022, 95% of South Africans used one or more developing digital payment methods in 2021. In Q2 and Q3, 67% of consumers made an online purchase, 66% bought something through a mobile app, and 49% purchased a service through an online subscription.
- In media & entertainment, the average time spent on social media in South Africa has been rising yearly since 2017, peaking at 2 hours and 47 minutes in that year and reaching 3 hours and 37 minutes by Q3 2021.
| Hotspot | Johannesburg | ||
| Rest of South Africa | |||
| 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 |
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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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