Data centre migration - current and future trends to consider
A data centre migration or relocation can be a big upheaval for any organisation, and everyone involved will want to future-proof it as much as possible. No-one wants to do this twice!
If your business is considering a data centre move, it’s advisable to take a look at where the rapidly changing data centre market appears to be heading.
The current market
The COVID-19 pandemic significantly boosted all digital sectors, dramatically increasing remote working and e-commerce, leading to an increased demand for data centres. With the growing volume of data, the indispensability of artificial intelligence and machine learning for effective data interpretation is rapidly becoming more pronounced. Notably, around 70% of data centres are leased from third-party operators, underscoring the critical role of data centre services.
Additionally, rising fuel costs and inflation are impacting various sectors, prompting a heightened focus on data centre energy efficiency. Projections indicate that by 2025, a substantial 75% of enterprise-generated data will undergo processing outside the realms of traditional cloud services or data centres.
All change
This sector is undergoing rapid transformation, fuelled by escalating data demands, advancements in technology, and an ever increasing need for sustainability. Here, we’ll examine the current trends that are shaping the future of the data centre industry, and look at the emergence of hyperscale data centres, significant advancements in secondary markets, the role of small to medium scale data centres, and the expansion of the data centre market in the UK. This industry is developing and transforming at lightning speed.
Here are the major trends to consider when planning a data centre move.
1. Hyperscale Data Centres
The data centre landscape is being reshaped by hyperscale facilities, specifically crafted to manage extensive server loads through modular components and advanced automation. Major players such as Facebook, Microsoft, Amazon, Alphabet, Alibaba etc. exert considerable influence in this domain, and projections indicate sustained growth despite economic hurdles.
There’s also a noticeable shift towards companies owning and operating their own bespoke data centres. This is driven by the desire to minimize reliance on third party vendors, tailor solutions to specific needs, and tap into renewable energy sources. The adoption of prefabricated, modular data centre design is on the rise, heralding a new era of efficiency. Colocation providers are emerging as key players, contributing to standardisation and facilitating swift deployments in this rapidly evolving landscape.
2. Secondary market growth
The exponential surge in data creation and consumption, driven by the proliferation of personal and household devices, has prompted the expansion of data centres into secondary markets. Primary regions are grappling with challenges like power shortages, limited space and high real estate prices, prompting the big hyperscale players to invest in secondary markets.
Geographical areas sited beyond the conventional data centre hubs are enticing tech giants by offering incentives at local and national levels to establish their presence, potentially fostering additional infrastructure projects.
In Europe, secondary markets, especially in the Nordic and Mediterranean regions, are witnessing notable growth. The appeal lies in factors like the abundance of renewable power, cost-effective land options, and close proximity to cable landing stations linking Europe with other markets. In response, cloud providers are broadening their availability zones and establishing fresh data centre clusters in these geographically attractive regions.
3. Low latency and small to medium data centres
The rapid growth of big data, IoT (internet of things), VR (virtual reality), and other emerging technologies underscores the significance of low latency in managing any data centre. Smaller, regional data centres, strategically located near data sources or end-users, are becoming increasingly important. In the current year, these more compact data centres have proven pivotal in advancing the development of 5G services.
4. UK data centre investment and growth
The growth of businesses, adapting to changing technology trends, is significantly propelled by IT infrastructure, encompassing servers and storage. Physical and economic real estate constraints in the South East of the UK are steering investors towards more budget-friendly regions.
Where next?
If your business is considering a data centre move, it’s also worth considering the drivers behind the likely future market trends in this industry.
1. Sustainability
Data centres are progressively steering away from fossil fuels and leaning towards renewable alternatives. Driven by energy security concerns (as well as cost), this transition is fostering self-sustainability through hybrid models and decentralized power sources such as solar, wind, nuclear, and hydropower.
2. Data volume increase
The exponential growth of data usage is fuelling the rise of multi-cloud deployments. To efficiently access and manage their data, businesses are seeking highly connected and secure geographically diverse platforms.
3. Artificial intelligence
The widespread adoption of data-intensive technologies like AI are already transforming this industry, spurring the development of innovative cooling methods. Liquid cooling and phase-change cooling are emerging as effective solutions to handle the heat generated by high-power density racks.
The data centre industry is a growing driving force in all digital economies, and will continue to shape our technological landscape for years to come. It’s in the midst of a significant transformation fuelled by heightened data demands, technological progress, and an increasing focus on sustainability. Secondary markets are gaining prominence, hyperscale data centres are taking the lead, but smaller-scale data centres are crucial for delivering low-latency services. In Europe, secondary markets are experiencing growth, and the UK data centre market continues to flourish.
As technology advances, data centres are poised to adapt and innovate while addressing sustainability challenges. The future trajectory involves a shift toward renewable energy, adoption of inventive cooling solutions, increasing development and deployment of AI
