Market Trends of US Multi-Tenant (Colocation) Data Center Industry
Healthcare Sector Accounts for Significant Share
- The healthcare industry generates enormous amounts of data. Many healthcare departments are collecting data from clinical trials and several outpatient records to analyze and derive meaningful analysis from such data. However, most hospitals involved in such data collection are not equipped with relevant infrastructure.
- As a result, many healthcare institutes face pressure to reduce a company's cost structure, to deliver full regulatory compliance and efficient solutions, with constraints about the increasing amount of data generated. Datacenter collocation provides a suitable alternative to enable cost-saving means for any firm.
- The government has supported the growing transition of healthcare facilities to adopt digital processes. This has presented an influx of new opportunities for the market of multi-tenant data centers.
- In June 2022, the United States Department of Health and Human Services (HHS) Office of the National Coordinator for Health Information Technology (ONC) announced the establishment of a USD 80 million Public Health Informatics & Technology Workforce Development Program (PHIT Workforce Program) to strengthen US public health informatics and data science.
- Privatized healthcare companies are observed partnering with multi-tenant data center providers to leverage new cloud and space management capabilities. In February 2022, Sungard Availability Services announced the completion of a colocation data center for NYU Langone Health. The 1MW facility has 5,000 square feet of raised floor space, 2N redundancy, and utilizes Vertiv's DSE High-Efficiency data center cooling solution. The data center helped NYU Langone manage its space, power, and spending more effectively. It also allowed the medical center to access public clouds and SaaS providers.
Understand The Key Trends Shaping This Market
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Growing Adoption of Cloud Applications is Expected to Drive the Market
- The demand for cloud-based solutions in the country is surging due to the growing application of technology and consumer propensity toward the cloud. This technology allows the user to access the data from remote locations.
- The increasing realization among companies about the importance of saving money and resources by moving their data to the cloud rather than building and maintaining on-premise infrastructure is driving the demand for cloud-based solutions. Hence, the adoption of cloud-based contact center services is increasing with new.
- Public cloud spending has increased for businesses of all kinds due to increased usage, and it is now a sizeable line item in IT budgets. Enterprises reported spending over USD 12 million annually in 37% of cases and over USD 1.2 million in clouds in 80% of cases. SMBs would have cheaper cloud costs since they have fewer and smaller workloads. However, 53% of SMBs spent more than $1.2 million compared to last year, an increase from 38%.
- According to the Flexera 2022 State of the Cloud Report, several enterprises agreed that their cloud usage might exceed the planned use at present, owing to the impact of the COVID-19 pandemic. Enterprises are forced to meet increased demand as online usage grows, resulting in the need for the extra capacity required for current cloud-based applications. Over 59% of enterprises expect their cloud usage to be significantly higher than planned, and about 50% of small- and medium-sized enterprises (SMEs) expect their cloud usage to escalate.
- Even though the COVID-19 pandemic changed many business paradigms, most respondents cited company growth and transformation as the main forces behind cloud adoption. Cloud also played a crucial part in assisting businesses to survive lockdown situations and inconsistent IT infrastructure, allowing them to develop more quickly and improve speed to market, agility, and responsiveness.
