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Data Centers are Growing, Here’s Why

By: Kaylie Gyarmathy on November 5, 2015

Data centers are becoming the new factories of the world, and these factories are growing to meet increased demand. As a result, most new data centers are bigger than their predecessors to accommodate for this growth.

During the recession, data center construction slowed like most other types of construction. However, since the economy has recovered, data centers are once again growing. Ten years ago, a data center with 30,000 square feet was considered large. Today, a 40,000 square-foot facility would be considered small compared to others.

Moving to the Cloud

One of the biggest trends driving these larger facilities is the migration to the cloud.

“Moving to the cloud lowers initial capital expenses for companies, as there’s no heavy investment in servers. For established businesses, the cloud is providing an attractive option when server or storage capacity needs to be increased,” says Graeme Thickins, a consultant who works with technology startups.

According to Ben Kepes from Forbes, “82 percent of enterprises have a hybrid cloud strategy, up from 74 percent in 2014.” In addition to this, Kepes reports private cloud is being used by 63% of organizations followed by public cloud at 88%.

As more businesses move to public, private, and hybrid cloud, these companies are going to consume more resources. In the case of hybrid clouds, they will maintain their existing in-house resources and add additional resources from public providers.

Supporting Local Economies

When new data centers are built, the construction projects help local builders.

“Cities are rolling out the red carpet to data center providers,” says Jason Baker, software development staff manager for Dell Cloud Manager. “While data center providers don’t necessarily employ a significant number of people, they support the technology operations of the surrounding industries, helping to retain other businesses in the region.”

Internet of Things (IoT)

Possibly the biggest growth factor in the future for data centers is the Internet of Things (IoT).

According to TechNavio, the Internet of Things market will grow 31.72% CAGR from 2014 to 2019. While the Internet of Things will become a huge market, it will also help organizations save money, collect valuable data, become more efficient, and much more.

However, in order to allow this type of growth, data centers will need to expand and create points of presence closer to their customers. This will be required to meet the massive compute, storage, and connectivity requirements.


These are just a few of the factors that will cause data centers to grow in the future. Is your data center ready for the growth?

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