The outburst of the ongoing pandemic in late 2019 and throughout 2020 & 2021 forced various CIOs from different industries to enhance their focus towards gaining operational agility. To remain competitive in their business domains, it is getting inevitably essentially important for a business to adopt Digital Transformation & prioritize their technology trends, such as Data Center Services. Apart from the technological front, CIOs and business heads also must emphasize talent retention & improve business relationships with their stakeholders. Various top Data Center providers have time and again highlighted the challenges associated with Data Center growth &  the role of Data Center Solutions in creating a digitally ready futuristic society.

Impact of Pandemic on Demand for Data Centers in India

The outcome of an IT spending survey suggests more than 65% of enterprises of Indian enterprises have understood the benefits of opting for a Cloud-based service to acquire new clients, serve the existing customer base & gain profitability. About 81% of corporate organizations have adopted Cloud Services owing to the pandemic as the implementation of work from home culture got predominated. During the first quarter of 2020, the spending of enterprises on Cloud infrastructure enhanced by ~35% compared to Quarter 4 of 2019 (Source: Ken Research).

The research clearly inferred that the pandemic served as a blessing in disguise for Data Center Services in India.

Expected Trends in Data Center Industry

1. Growth of Edge Computing

Recently, there has been a multi-fold demand for highly available & low latency networks, with end-users demanding digital content services. Organizations aim to enhance their IT flexibility by providing an improved customer experience. End-users are also looking to use Colocation Data Center services to out-grow their edge computing capacities in their core areas. Instead of having a centralized repository for all their assets, enterprises look to create diversified network data that remain closer to their end-users. Edge computing offers users high-performance networks for their work-related requirements.

2. Growth of Small Data

Small Data is usually linked with edge computing in applications demanding lower latency. Small data infrastructure boosts a faster analysis for all those data that demand high availability & bandwidth. It is important to understand that small data doesn’t eliminate Data Centers; rather, it facilitates their usage since edge computing processes data locally. Overall, this boosts the need for applications with low latency, connecting devices to colocation Data Center providers. Thus, it is clear that there will be a broad-scale adoption of devices that will use Small Data capabilities in the coming years.

3. Resiliency & Uptime Continues to Be the Core Focus Area

Assuring maximum uptime for hosted critical applications & data is always the top priority for any Data Center services provider. However, maintaining uptime has been a challenge as more companies are now opting for a hybrid infrastructure, involving backup and failover strategies, including Cloud, Colocation & on-premises facility. On the operational front, users continue to optimize their IT infrastructure to match with any failure or outage, with its impact depending on the Data Center provider.

4. Accelerated Investments in Regional Markets

The influx of global capital has increased digital infrastructure growth in all regions. Much of the capital investment is being made by adding more Data Center Services across major Data Center market chunks. In 2022, there will be a deep penetration of some best Data Centers within Tier 2 & Tier 3 cities due to localized users’ data hosting & security needs.

Indian markets have witnessed an increased focus on Data Recovery & Disaster Recovery Management services being offered by leading Tier 3 Data Centers in India, driving the expansion of the market across different cities. High penetration of OTT in the rural market has resulted in an increased need for Data Centers Services in India.

Below is the illustration depicting the details of upcoming gross space Data Centers by region (in India) based on new space additions (in %). This is from March 31, 2020, to March 31, 2025.

5. Liquid Cooling Data Centers

The Data Center industry is continuously changing its focus to adopt liquid emersion cooling Data Centers. In the coming year, significant advancements will be made in this direction due to reassessed cooling demand for avoiding usage of excess water for cooling hardware.

6. Cloud Diversification: Emergence of Multi Clouds

Today, Enterprises don’t rely on a single Cloud Provider to manage their technological needs. Instead, they tend to avail services of a single Cloud provider, often termed as Multi-Cloud. With Multi-Cloud, enterprises enhance their capability to transform their business areas completely. Enterprises can migrate, modify & redeploy their workloads with different Cloud providers and address the changing needs of their customers.

7. Microgrids

The concept of Microgrids is becoming a notable trend as a notable on-site generator within the premises of some best Data Centers. With microgrids in place, Data Center Services get access to multiple energy sources, ensuring they operate independently of the installed energy grid in case of outages or disasters. Data Center microgrids can be easily integrated with renewable energy sources, resulting in in in lower carbon emissions. Microgrids can be of great significance as the Data Center providers are looking to become green Data Centers through these alternate & clean sources of energy.

8. AI & Automation for Easing Data Center Tasks

The current pandemic resulted in a reduced number of on-site technicians and domain experts who could handle any data center problem. Advanced technologies like AI & Machine Learning can be of great help in remote management & monitoring of Datacenters. Automation could find its best usage for driving infrastructure management using robotics. With huge volumes of data being generated & stored within Data Centers, it will utterly surpass human handling capabilities. Hence, efficient usage automation & AI could result in accurate managing & monitoring of data stored within Data Center hosting. These technologies also have an important role in determining user data patterns & preferences.

Concluding Words

These are only some of the prominent trends that will positively impact the Data Centers, influenced by challenges thrown by the pandemic. With data volumes rising persistently, there might be more disruptions emerging, resulting in enhanced data hosting within Data Center services. Implementation of Advanced Technologies will boost Data Center hosting services by multi-folds.