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January 7, 2015

Data centre construction market to hit $22bn by 2019

The industry is expected to grow at a CAGR of 9.3% from $14.59bn last year.

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The data centre construction market is set to unlock more than $22bn in revenues by 2019, driven by increased demand for data storage.

The latest report from research firm Research and Markets found that the industry would grow at a compound annual growth rate(CAGR) of 9.3% from $14.59bn last year.

The research put the growth down to increased data traffic over the internet, which is driving demand for data storage.

"In order to accommodate this enormous amount of data, companies are forced to operate a number of data centres, which may or may not be located in the same location. The cost associated with operating these data centres is also high, resulting in reductions in the profit," the report said.

Other costs relate to organisations, such as Facebook, Google, Amazon, Microsoft, Apple, and eBay, which are managing a number of data centres that are running in different locations.

"These giant data centres also offer local benefits such as low energy prices for large-scale consumption, tax benefits, and climatic advantages. In these data centres, unwanted infrastructure is eliminated which reduces the operational complexity," the report said.

"In these data centres, unwanted infrastructure is eliminated which reduces the operational complexity. So, with the continuously increasing demand for data storage across various industry verticals, organizations are forced to come up with massively scalable and cost-effective data storage solutions, so that the additional cost of adding thousands of users would be negligible."

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