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Demand Explodes for Data Centers- NGKF Research

Posted by Jeffrey Mayer on October 3, 2016
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Demand Explodes for Data Centers

Demand for data centers is booming, fueled by IT outsourcing, cloud services and the rapid expansion of Internet Protocol (IP) traffic. Cisco Systems, Inc. forecasts that global IP traffic will nearly triple between 2015 and 2020, with traffic from wireless and mobile devices accounting for two-thirds of the total by 2020, up from 52% in 2015.
Data center space is measured in both power (megawatts) and net operational square footage (excluding hallways, restrooms, etc.), with power being the critical factor. A data center can run out of power before it runs out of physical space. The adjacent map shows the 25 largest data center markets by their total power capacity in megawatts. These include colocation facilities, where tenants own, use and maintain their own hardware infrastructure; and cloud computing facilities, where the provider supplies and manages the infrastructure for the tenants. Excluded from these totals are data centers occupied by a single company, used for its own purposes


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