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IT load capacity is mushrooming, with more organizations demanding over 2 megawatts. Now, artificial intelligence (AI) and machine learning (ML) are emerging as top investment priorities for global enterprises, followed by Internet of Things (IoT) and cloud technologies. Additionally, sustainability is becoming a crucial factor that drives service provider selection.
Two broad megatrends are pushing data center providers to revisit growth strategies — AI and sustainability. Generative AI (GAI) is spurring an overhaul of traditional hub-and-spoke data center models, leveraging embedded AI to uplift data center infrastructure management (DCIM).
Customers are increasingly leveraging provider sustainability initiatives to support their own green strategies and maximize energy efficiency. Now, colocation providers face the imperative to revisit design, operations, and governance strategies, incorporating advanced cooling technologies, and investing in renewable energy sources for reducing carbon footprints and gaining a competitive edge.
AI workloads are driving the demand for high-density data centers with power, cooling, and infrastructure needs distinct from traditional setups. As service providers anticipate a 20-30% increase in power requirements over the next 3-5 years, investors are increasingly backing large-scale data centers to assure capacity for growing AI workloads,
Building data centers requires over 12 months due to their capital-intensive nature. Immediate scaling can be achieved through higher density racks, but data center redesigning poses logistical challenges. This makes it crucial for providers to track utilization and vacancy rates to maintain a supply-demand equilibrium.
The rising demand for edge computing and low-latency applications is intensifying the pressure on colocation providers to expand their offerings, rendering centralized data-processing obsolete. But, decentralization of IT architecture requires innovative edge strategies and end-to-end services, augmented with tools that enable integrated infrastructure management.
As the digital world is transforming, so is the data center industry – the backbone of the digital economy. Evolving industry megatrends and supply-demand dynamics are creating new growth opportunities for service providers, demanding a reassessment of the growth strategy.”