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Data Center Market to Cross $300 Billion by 2026
Rise in use of Internet of Things technologies, AI inspiring higher demand for data centers. August 23, 2024
A protected surge in data technologies like the Internet of Things (IoT) and generative artificial intelligence (AI) is powering a data center and information technology (IT) infrastructure market that will escalate beyond $300 billion in only two more years, a report from commercial real estate and investment management company JLL.
Analysis from JLL reveals that the market is expected to reach $317 billion annually by 2026. The surge represents 107 percent growth from 2020, when the market was valued at $153 billion.
JLL says the increase matches the growth of IoT devices, which will expand at a compound annual growth rate of 9.8 percent over the next five years. A 2023 survey of data center professionals cited the requirement for low latency and high bandwidth (41 percent) was the most important driver for edge data center deployments, followed by data security and privacy (38.3 percent).
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Consumers and enterprises demanding improved products and services like low latency, high computing, generative AI and omnipresence will ensure that the cloud environment and future of edge data centers remain healthy with opportunities observed.
“Consumers and corporations will continue to adapt to transformational technologies within daily life and without the distribution of data processing and storage across various locations, cutting edge efficiencies and solutions like IoT and generative AI will not transition to mainstream acceptance,” says Johnathan Kinsey, EMEA lead and global chair, Data Centre Solutions, JLL. “Edge data centers will be essential to ensure both seamless business operations in the future economy while also improving security measures and protecting against potential disruptions. By lowering latency by bringing the computing infrastructure closer to the source and user, edge IT infrastructure will become an essential component in the international economy.”
For more on the report, see JLL’s account here.
Dave Lubach is the executive editor for the facilities market.
