Micro data centre market projected to reach $15 billion by 2026

Micro data centre market projected to reach $15 billion by 2026

With digitisation having led to the generation of huge volumes of data, increasing adoption of digital technologies could positively impact the growth of micro data centre businesses to the tune of $15 billion by 2026, according to Global Market Insights.

According to a recent study from market research firm Global Market Insights, organisations are looking for reliable data storage solutions that offer efficient management and data security.

The advent of new-age computing technologies has advocated the construction of new data centres. Generally, the distance between a data centre and an end-user can affect the delivery of digital services with high bandwidth costs. Micro data centres solve this issue by enabling the effective deployment of edge computing.

Colocation micro data centres offer lower costs for the overall IT infrastructure and curtail off the additional expenses related to cooling and power devices.

The rising popularity of colocation services will add impetus to market value considering the high development charges of new data centres, that prevent small and medium enterprises from constructing their own data centres.

In terms of application, the micro data centre market is bifurcated into colocation, BFSI, government, energy, industrial, healthcare and IT/telecom.

Out of these, the colocation services segment is expected to record immense traction over the forecasted timeframe.

Building a new data centre can be expensive, especially for small and medium-sized businesses that have budget constraints. As a result, colocation services provide a cheap alternative for businesses to store their vital data.

Colocation services minimise the additional expenses incurred for power and cooling equipment, and the overall cost on IT infrastructure.

Various colocation providers are integrating micro data centres in their portfolio to broaden their market reach and consumer base.

Taking August 2020 for instance, EdgeMicro released five new micro data centres in the United States as spending on edge technology from cloud vendors such as Google, Microsoft and AWS skyrocketed.

On the regional landscape, the micro data centre market Middle East and Africa are emerging as a credible growth source for micro data centre companies.

Rapid expansion activities in the industrial sector supported by increasing trend of digitalisation could prove beneficial for the regional business outlook.

Initiatives like Abu Dhabi Economic Vision 2030 and UAE Vision 2021, which are focused on establishing a globally integrated business environment and building modern economies, could massively support the adoption of micro data centres.

Meanwhile, increasing deployment of IoT and cloud computing across South Africa could bring in new growth opportunities for local micro data centres.

Increasing number of enterprises implementing modern digital solutions could strengthen the demand for cost-effective, portable and energy-efficient data centre infrastructure.