While data center construction is increasing significantly worldwide, these data centers are mostly restricted to urban locations and significant areas such as Texas, New York, Virginia, London, Stockholm, Frankfurt, Paris, Dubai, Mumbai, Osaka, Sydney, Melbourne, and Auckland. Because of the increasing usage of connected devices by businesses and consumers, these locations have attracted high investments, and more data centers are planned for 2020 and 2021. Therefore, the global data center rack market will be boosted by these data center investments. Arizton’s recent report shows that the global data center rack market will grow at a CAGR of over 4% during the period 2019−2025.
North America dominates the data center rack market
North America has organizations in building high-performance computing data centers to continue to innovate in the field of IoT, artificial intelligence, and connected reality. So, it is possible to say that North America is among the leading markets for cloud computing, big data, and IoT technologies. Due to the report, North America will keep its strong driver position for the global data center market, with many recent activities targeting the construction of hyper-scale facilities with over 20 MW of power capacity. The major market challenges are power consumption, carbon emission, and increased water usage by data centers for cooling.
The US which has a 37% revenue share is followed by China and Western European countries. In 2019, data center investment was dominated by colocation providers. The adoption of racks in colocation facilities varies from a few hundred to over 5,000. However, the contribution from enterprise data centers declined with service providers mostly shifting from traditional greenfield deployments to modular deployments. Another key finding is that the colocation data center dominated the market with around 75% share in rack shipment.