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Cloud Data Center Market Size to Reach $70 Bn by 2032

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Cloud Data Center Market Size to Reach $70 Bn by 2032

As per the report by Global Market Insights Inc. “Worldwide cloud data center market was valued at over USD 20 billion in 2022 and will surpass a revenue collection of USD 70 billion by 2032 with an annual growth rate of 10% from 2023 to 2032.”

The growth of e-commerce and online services is expected to drive significant growth in the Cloud Data Centre Market until 2032. The rise in online shopping has presented numerous growth prospects for e-commerce platforms. Leading online retailers like Amazon, Alibaba, and Flipkart have adopted hybrid data cloud centers to oversee sales, save customer data, and monitor other business operations. This adoption is expected to fuel the expansion of the market.

The cloud data center market is categorized based on service, deployment model, organization size, end-user, and region.

Infrastructure-as-a-Service (IaaS) segment is expected to exhibit growth until 2032, based on its service. The segment’s growth can be attributed to the increasing preference for IaaS, which provides users with more flexibility to build computing resources as needed and resolves data traffic issues. Moreover, IaaS allows users to access cloud servers and storage directly through any mobile device, further contributing to the segment’s growth.

In terms of deployment model, the private cloud data center segment is expected to gain traction in the coming years, as it enables a single user to access data from anywhere, at any time. Private cloud data centers are also preferred by the BFSI industry due to their high-end security and on-premises data center storage.

Small- and medium-sized enterprises (SMEs) are anticipated to drive significant demand for cloud data centers based on organization size. SMEs are increasingly adopting cloud data software to manage data in one location and meet business requirements. Additionally, storing data on the cloud helps to reduce infrastructure and labor costs while saving time.

The colocation segment is expected to experience noticeable growth by 2032 based on end-users. Colocation involves customers transferring servers and hardware into a data center with internet connection, power, cooling, and security systems. Moreover, increased investment and innovation to support cloud software applications in the colocation segment is driving market growth.

In terms of region, the Asia Pacific cloud data center market is projected to exhibit a CAGR of over 30% from 2023 to 2032. Advancements in AI and IoT in various countries such as India, China, and Japan are expected to have a positive impact on the industry outlook. The cloud market in Japan is growing due to the ongoing system migration from on-premises to cloud-based systems and increased demand for cloud-oriented systems.


5 IT Best Practices for the Digital Transformation of Businesses in 2021

Many businesses across North America just experienced their worst year for sales as the pandemic, and its associated restrictions, prompted closures for much of 2020-2021. As a result, every aspect of business has been challenged – from supply chain issues and evolving delivery methods to addressing new expectations from both consumers and employees.

To meet the demands of the new digital-first era we now find ourselves in, companies are adopting cloud-based tools and technologies at an accelerated rate. But true digital business transformation is more complicated and 70% of digital transformation strategies will fail (BCG analysis, October 2020). To ensure long-term, sustainable change, companies’ IT departments must focus on five key things:

1. Establishing a digital mindset, one of continuous innovation, across the entire organization

Culture change is one of the most difficult challenges of any business transformation. Executive leadership must initiate the change and demonstrate commitment to pivot by adopting an agile governance mindset. As the relationship between IT and business value deepens, the role of the IT department will become more critical to creating and accelerating profitable business growth. It is important for CIOs and the executive team to actively drive agile behaviors across the enterprise. This means establishing agile principles cross-functionally and adapting to change based on context and continuous learning.

2. Adopting modern, agile, and scalable digital technology architecture to fundamentally redefine the ways in which the organization operates

Many companies manage a wide variety of IT systems and mobile tech devices, but not all have mastered how to efficiently integrate new applications and cloud services with existing and/or third-party infrastructure. Solutions that enable full, omnichannel integration across all platforms will be important for businesses to ensure that key data is always available in real-time to make agile, more informed decisions. This helps businesses streamline operations to enhance efficiency, while reducing costs and building resiliency.

3. Capturing and activating data to better engage audiences and improve the customer experience

Customers’ expectations are radically changing – and so should the experiences your business delivers. Cloud-based tools and technologies allow brands to compete more effectively by ensuring that every interaction across every platform is delivering a consistent experience for the customer. This is achieved by seamlessly integrating commerce with other IT applications to give business decision makers a comprehensive picture of the customer journey, thereby allowing them to capture and activate key data to improve personalization, engagement, and brand loyalty.

4. Ensuring the best people are in the right places to drive the transformation

Undertaking a digital transformation is no easy task. Many organizations lack the right mix of skills and expertise required to execute a successful pivot to digital. Companies should carefully assess the roles and talent needed and look to external staffing and consulting firms that specialize in digital transformation solutions to fill gaps in their IT department.

5. Creating clear and effective tools to monitor progress and measure success

Businesses that develop effective monitoring tools and strategic metrics are more likely to be successful at digital transformation. This may include clearly defining operational or financial metrics, regularly tracking outcomes and roadblocks, and measuring productivity. Most importantly, it is advisable that companies maintain a single source of truth on data to ensure everyone involved – no matter their role or department – has access to the same analytics and information.


Keith Hontz is the Chief Executive Officer and President of Savantis. In this role, he oversees all key aspects of operations across Savantis SAP Global Solutions consulting services and Savantis Global Staffing services. With nearly 25 years of industry experience, Keith is a digital business transformation expert, helping organizations create operational efficiencies, derive deeper insights from data, improve their customer experience, and transform into Intelligent Enterprises. Keith joins Savantis following his successful role as CEO of SocketLabs, an industry leader in high-volume email infrastructure, where he quickly built his leadership team, onboarded an enterprise sales organization, and helped establish double-digit YoY revenue growth in his first year with the Company. Prior to SocketLabs, Hontz spent more than two decades at SAP America where he held key positions including Global VP, Regional VP, and other leadership roles in consulting, presales, product management, sales, and executive management, and engaged with hundreds of SAP customers in the private and public sectors.

data center power

Data Center Power Market is Projected to Reach USD 15 Billion by 2026

According to a recent study from market research firm Global Market Insights, the growing deployment of IoT and cloud computing technologies across various businesses will significantly expand the data center power market share. Cisco Systems had estimated that the number of hyperscale data centers will see a rise from 338 in 2016 to 628 by 2021. It has also been found that these data centers will contribute to 53% of the total data centers across the globe.

Data center power management can be touted as a broad process that deals with the management, measurement, as well as monitoring of power generation in data centers. It also looks after the consumption and optimization of power within a data center facility. The construction of mega-facilities across different regions in the world by some of the global enterprises has added impetus to data center power consumption over the coming years.

The rising requirement for data centers and power backup has urged several firms to opt for modular data centers in order to add multiple modules. These data centers ensure that the load operates at an optimal level owing to their modular Uninterruptible Power Supply (UPS) architectures.

Furthermore, these systems are highly preferred in comparison to conventional UPS as they can be easily accessed and installed. They also offer maximum reliability and reduce the total cost of ownership. The smaller design or size of modular UPS makes it effective for use in micro and edge data center facilities that are distributed across crowded urban areas.

Data center power market distribution from colocation applications will gain significant momentum through 2026. This is due to the numerous benefits rendered by colocation providers, in conjunction with narrowing down the need for companies to establish newer facilities that can drain their vital resources like time, labor, and money. Owing to this, colocation data centers are highly preferred by several businesses that have monetary constraints and limited data storage requirements.

Furthermore, the influx of IoT and cloud services has augmented the need for data storage across large enterprises. This has pushed colocation providers to deliver enhanced services to operators in the form of power, cooling, and maintenance of the infrastructure.

Regionally, Data Center Power market in MEA is estimated to grow commendably over the forthcoming years attributing to the thriving telecommunication industry in the region. This has increased the demand for cloud computing which in turn has urged service providers to extend their IT facility across several economies in the region. As a result, various telecom operators are focusing on establishing large-scale facilities for improving their data transmission rate and meanwhile gaining a competitive edge in the market.

For instance, in 2019, renowned Palestinian telecommunication company Paltel Group announced the completion of the construction of its second data center in Ramallah which is a 65,000 square foot (6,000 sq m)-facility certified with Uptime Tier III Design. Such tremendous expansions of IT facilities will certainly instigate the adoption of intelligent power managing solutions for effective energy consumption in these facilities.

Key Companies covered in data center power market are ABB Ltd., Active POWER, Belkin International, Inc., Black Box Corporation, Caterpillar Inc., Cummins, Inc., Cyber Power Systems, Inc., Delta Electronic Inc., Eaton Corporation, Emerson Network Power, Inc., Hewlett-Packard Company, Huawei Technologies Co., Ltd., Legrand, Mitsubishi Electric Corporation, Rittal Gmbh & Co. Kg, Schneider Electric SE, Siemens AG, Toshiba Corporation, Tripp Lite, Vertiv Group Co.