Highlight:

  • The demand for more efficient infrastructure solutions to process data, along with cooling and rack-based products, will lead the DCIS market – Manoj Shankar, Energy and amp; Environment Research Analyst at Frost and amp; Sullivan, said.

Data center infrastructure solutions (DCIS) – on the rise

Frost and amp; Sullivan’s analysis report states, investments from technology and industrial firms in the next-generation cloud, enterprise, and co-location data centers will boost the global data center infrastructure solutions (DCIS) industry growth.

Continuous data generation across the globe has led to increased data center investments, thus enabling the necessity for power and cooling solutions that are eco-friendly, highly efficient, and lowering the cost of ownership.

COVID-19 impact on the construction industry

Even though COVID-19 harmed the construction industry, it will witness substantial growth in 2021 due to pent-up demand.

Investment portfolio

The total investment in DCIS is anticipated to reach USD 26.15 billion by 2025 from USD 16.73 billion in 2019. The industry is expected to develop at a compound annual growth rate (CAGR) of 7.7% during the forecast period. Technology and telecommunication organizations from China and the US will continue their robust expenditure over the next decade to take over the data center space.

Expert’s view

Manoj Shankar, Energy and amp; Environment Research Analyst at Frost and amp; Sullivan, commented: “Data creation is also expected to occur at a faster pace, as 5G will enable activities such as augmented and virtual reality, smart sensor technology, and advanced mobile video and gaming, all of which drive data traffic. The presence of microdata centers in the form of multi-access edge computing (MEC) sites within the 5G networks will bring data processing and storage close to the customer end.”

He further added, “However, these MEC sites will have increased power requirements, which lead to the development of innovative power and cooling solutions that cater to the needs of 5G networks, thereby driving micro and modular infrastructure development.”

Shankar also added: “The demand for more efficient infrastructure solutions to process data, along with cooling and rack-based products, will lead the DCIS market. Uninterrupted power supply (UPS) and generators will also feature prominently as a data center backup power source as companies seek to reduce downtime, hence deploying multiple backup power solutions.”

New data centers need to be developed

With the rise in connected devices and the arrival of 5G, new data centers need to be established, introducing tremendous development possibilities for DCIS industry applicants, including:

  • Associating with other suppliers to introduce new products that offer consumers a wide variety of options to cater to their different needs.
  • Linking with global telecom operators to get direct access to edge data centers, a field test of new products, and understand the technology.
  • Launching subsidiaries in new regions in collaboration with data center technology providers will establish new data centers to gain industry access.
  • Focusing on penetrating the product replacement industry as companies could offer new and more effective solutions tailored to the latest data center’s various demands.