The pressures of supply chain disruptions, electricity price volatility, and government intervention are impacting prices in the global colocation market.
As we continue to move through 2023, here are a couple of trends to keep an eye on.
By our 2023 estimates, the Washington metropolitan area—or more specifically Northern Virginia (NoVA)—dominates as the world's largest data center market.
With more than 22 million square feet of operational capacity, NoVA is 30% larger than the next-biggest data center hub, Tokyo.
What else does the most recent update to our Data Center Research Service tell us?
Recently, we’ve been closely monitoring the intensifying pressures of insatiable demand and supply constraints in key data center markets.
Supply constraints have come in the form of both short-term and long-term challenges.
In the short term, supply chain disruptions have hindered development timelines. On the long-term side, regulators and utility providers have begun taking a hard look at the data center sector and how to grow it sustainably going forward. In some cases, these entities have severely disrupted development during the interim period.
None of these challenges have been resolved. And as we move through 2023, another major disruptive component has been added to the mix—the accelerated growth of generative Artificial Intelligence (AI).
Last week, I presented the latest TeleGeography data on Asian cloud data centers through a live webinar with Ciena.
Let's talk through the first section of my presentation, which maps out the region’s current cloud data center and cloud service provider landscape.
I'll also share a link to download my slides and watch a recording of the discussion.
After a three-year dip, the pace of cloud region expansion is accelerating, with close to 50 planned regions in 2023 and beyond. Asia is the global leader with the most cloud data centers—more than the U.S. and Europe combined—with key infrastructure projects to watch.
Join TeleGeography Senior Research Manager Patrick Christian and Ciena's Brian Lavallée on Tuesday, September 12 at 11:00 a.m. ET for a live discussion covering the latest data on Asian cloud data centers.
The global data center market is under an unprecedented squeeze as we move into 2023.
On one hand, we have a long-term challenge surrounding the sustainability of the industry’s growth trajectory in essential hub markets. On the other, we have an acute short-term problem with energy prices in the colocation sector.
These issues combine to create an uncomfortable phase in the market right now.
Back in July, we touched on how UK data centers were struggling to stay cool through unseasonably warm temperatures.
Five months later, our telecom reading list starts off with a very different story: Equinix is considering a multi-year project to raise its data center temperatures.
There’s a remarkable sense of uncertainty in the data center sector right now.
Some of the biggest global markets have seen unprecedented disruption to data center development as regulators and utility companies attempt to work through critical issues surrounding the long-term sustainability of the industry.
At the same time, the war in Ukraine has fueled tremendous volatility in European wholesale power prices, bringing further stress to an industry that’s fundamentally dependent on vast amounts of power. Let’s unpack the current situation.
When I reached out to today's podcast guest—Jim Poole, Vice President of Business Development at Equinix—about being on the show, I asked if he'd be willing to dig into NaaS or edge data centers.
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