Data Centers are large IT infrastructure warehouses built and designed to collect, store, and process large amounts of data. Data Centers can be dedicated to a single organization or can be shared by multiple organizations that run their operations in one or more data centers simultaneously, as is the case with Multi-Tenant Data Centers and Infrastructure as a Service (IaaS). The shared model is a cost-effective ways of sharing storage and computing power. Data centers come in all shapes and sizes, with the largest ones consuming as much power as a city and the smallest ones fitting into a closet. For smooth operations, data centers can require multiple back-up generators, networking connections, ventilation, and data cooling systems. Some of the most common components of data centers are storage, servers, routers, switches, firewalls, Data Center Cooling, and power. You can find Data Center Market Size, Data Center Market Share, and other trends and statistics below.
The chart shows the Data Center Market Size (in terms of Data Center Infrastructure spending) from 2018 to 2021. In 2019, the size of the Data Center Industry was $205B and is projected to grow by 2.4% in 2020. From 2018 to 2021, the Data Center Industry growth is projected to average 0.32% per year.
The chart shows Data Center Market Share in 2017. The leading server vendor revenue in the Data Center Industry was Equinix with 9.5% market share in 2018, followed by Digital Realty with 5.7% market share, China Telecom with 3.3%, CenturyLink with 2.1%, China Unicom with 2.1%, Verizon with 1.9%, Dupont Fabros Technology with 1.9%, Level 3 Communications with 1.8%, and other companies with 68.4%. View the source for this Data Center Market Share chart and other Data Center Market Share estimates here.
The Data Center Market is expected to resume growth in 2020 despite a slowdown in 2019. The Data Center market is heavily influenced by semiconductor prices. Commodity semiconductors prices for storage and memory fell between 2018 and 2019. The growth in 2020 will be primarily driven by a recovery in semiconductor prices, growing demand for public cloud services and the requirement for richer server configurations. This will result in higher average server selling prices. Other factors to look out for include Data Center provider consolidation, the acquisition of small data center companies by larger cloud software providers, the rise in adoption of multi-cloud infrastructure and network upgrades to accommodate technologies like 5G. Public Cloud and Multi-Tenant Data Center infrastructure growth is offset by slowing growth in Traditional Data Center as companies are increasingly dropping their on-premise infrastructure in favor of cloud platforms.
Market research sources disagree intensely on the Data Center Market Size, disagree intensely on the Data Center Industry Market Share, and moderately disagree on the Data Center Growth. The cause of disagreement is due to the lack of a standardized definition of Data Centers and what types of products or services should be included. Therefore, different sources may have very different perspectives of Data Centers market share and Data Centers industry size. For a complete evaluation of the Data Center Industry, T4 recommends exploring all available Data Center Market sources. T4 aggregated and organized the data from these sources on the T4 Industry Research Platform. See Each source's view of the Data Center Market, Data Center Market Size, and Data Center Market Share on the T4 Platform.
T4 comprehensively aggregated more than 100 reports from more than 50 publishers covering statistics and trends in the Industry. This includes Revenue by Region, Use-Case, Data Center Size, Type of Architecture, Type of Technology; Install Base Size, Install Base by Region, End-User, Deployment Type and Price, and more than 70 additional statistics. The Industry falls under T4's Information Technology industry coverage. Industries related to the T4 taxonomy include Cybersecurity, Cloud Computing, IT Software, Networking, Servers, Storage, and the Internet of Things. Related subcategories of the Industry include Data Center Infrastructure, Data Center Construction, Data Center Services, Hyperscaler Data Center, Data Center Types such as Cloud Data Center, Edge Data Center, Modular Data Center and Multi-Tenant Data Center. You can find reports covering these industries on T4’s Platform.
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