Data Center Renovation Market Improvement in Technology is Expected to Drive the Growth by 2028
Category: #business  By Ronak Bora  Date: 2022-08-10
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Data Center Renovation Market Improvement in Technology is Expected to Drive the Growth by 2028

As corporate workloads shift to cloud platforms, global data center renovation market forecast will be driven by the changing real estate trends. Due to the strong pre-leasing activities across U.S. data center market, several renovation plans are likely to be underway.

According to the estimates of Coldwell Banker Richards Ellis (CBRE), nearly 60% of the total 527.6 MW of newly constructed data center space in the region has been pre-leased. Although new construction has been growing to meet the heavy demand, space constraints and high real estate costs will incite investments in redevelopment of existing data center renovation market.

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By 2028, global data center renovation market size will have crossed nearly $70 billion. Top renovation service providers, such as APL, Eaton Corporation, Schneider Electric, Vertiv, and Serverfarm, have been offering customized solutions. Most colocation data centers have been adopting a phased retrofit approach to ensure continuity of operations during the project. Listed below are three of the major trends underscoring the global industry outlook:

Edge data centers to accelerate liquid cooling adoption

Liquid cooling is gaining widespread approval as a next-generation solution that can effectively address the need for scalability of computing infrastructure. As operation costs from air cooling can be a stumbling block amidst higher equipment densities, Europe edge data center renovation industry share from liquid cooling products is slated to rise.

A number of cooling solution providers are introducing new products with advanced features. Recently, Inspur, which claims more than 100 core cooling patents, and JD Cloud collaborated to develop a rack-server that enhances power distribution by nearly 10% as compared to air-cooled rack servers.

In April 2022, Dataqube, an Outdoor Edge cabinet manufacturer, announced that it has Deployed LiquidCool’s cooling solutions, gaining exclusive marketing rights for some of its products.  The company has also been gaining significant attention from customers for its ZP server or ‘Zero Pressure Server’ units. These are modular units that can fit into existing server racks of data centers that are looking to migrate from a from air cooled racks to liquid cooled systems for saving space and energy costs.

Self-contained racks to see higher deployment

North America data center renovation market share from enclosures and racks is expected to show a hike up to 2028. Greater flexibility in terms of placement is adding to the demand for innovative rack systems. Since new rack units are able to support higher cooling densities, data centers are adopting a step-by-step migration.

Self-contained racks market is gaining traction because workload migration volume is greater by 40 to 50% than traditional counterparts. A new self-contained four rack system can support workloads between 6 and 8 racks on the floor space. Underutilized racks will be removed for adding additional floorspace.

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Data center renovation market participants are introducing innovative rack designs. In April 2022, FS.COM and Super Micro Computer, Inc (SMCI) announced a strategic partnership for delivering superior-performance rack servers. With enhanced reliability, these solutions will help enterprises deploy, manage, and scale their infrastructure in terms of big data, virtualization, and cloud computing needs. Supermicro’s servers come with 2nd and 3rd generation Intel Xeon processors that support both remote and on-premise deployment.

Telecom companies’ financial commitment to ‘Eastern Data, Western Computing’ plan in China

After the Chinese government introduced the ‘Eastern Data, Western Computing’ plan in a 2020, the demand for computing power across China's industries has been spiraling. Companies have been planning data center remodeling in order to handle the exponential daily mobile computing and data needs of Internet users and industrial facilities. Several state-owned telecom companies have been planning to provide financial support to the government’s latest ‘east-west’ plan, whereby upgraded data centers will be able to receive and process data from western cities.

In a bid to participate in this upcoming project, China Telecom has raised its budget by 7%, reaching nearly 93 billion yuan, which is significantly higher than that of its competitors. The company has also increased its spending towards digitalization to nearly 62%. According to some experts, state owned network operators as well as infrastructure groups including China Tower, might spend nearly 22 billion yuan towards building renewable power networks for advanced connectivity across eastern metropolises.

As building new facilities is not always a feasible alternative, healthcare, BFSI, and IT enterprises will invest in remodeling data centers to accommodate the enhanced processing capabilities and higher rack densities. Making the most of the existing floorspace has never been so important as now, when smaller carbon footprint has become a data center renovation market buzzword. In the long run, increased demands on infrastructure will require cost-effective and productive retrofits in order to retain reliability and customer trust.

Table of Contents (ToC) of the report:

Chapter 1   Methodology & Scope

1.1    Scope & definitions

1.2    Methodology & forecast parameters

1.3    Regional trends

1.3.1    North America

1.3.2    Europe

1.3.3    Asia Pacific

1.3.4    South America

1.3.5    MEA

1.4    COVID-19 impact

1.4.1    North America

1.4.2    Europe

1.4.3    Asia Pacific

1.4.4    Latin America

1.4.5    MEA

1.5    Data sources

1.5.1    Secondary

1.5.2    Primary

1.6    Glossary

Chapter 2   Executive Summary

2.1    Data center renovation market 360º synopsis, 2018 - 2028

2.1.1    Business trends

2.1.2    Regional trends

2.1.3    Product trends

2.1.4    Application trends

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About Author

Ronak Bora

Ronak Bora    

A graduate in Electronics Engineering, Ronak writes for Technology Magazine and carries a rich experience in digital marketing, exploring how the online world works from a technical and marketing perspective. His other areas of interest include reading, music, and spo...

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