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As data centers have continued to shift and grow, the data center industry has had to adapt. Along with this growth, new opportunities and challenges have arisen for businesses in the space. In order to stay ahead of the curve, it's important for companies to be aware of these changes and how they can impact their business. In this video discussion with Randy Rowland, COO of Cyxtera, we discussed some of the latest changes in the data center industry and how businesses like Cyxtera have been able to adapt and change with them. #1 Data Centers are Shifting East For a long time, North America has been home to the majority of data centers. However, that is starting to change. As data centers continue to migrate eastward, Asia is quickly becoming a major player in the space. This shift is largely being driven by two factors: first, rising demand from Asian companies and governments; and second, falling costs in Asia relative to other regions. As a result of this migration, businesses need to start paying attention to new markets like China and India if they want to remain competitive in the data center space.  #2 The Rise of Edge Computing  Another trend that is impacting the data center industry is edge computing. Edge computing refers to the practice of moving processing power closer to where it is needed most. This is often done to improve performance or reduce latency. As the internet of things (IoT) continues to grow, the demand for edge computing is expected to increase. This is because devices that are part of the IoT often need to communicate with data centers in real-time. By moving processing power closer to these devices, businesses can ensure that data is processed quickly and efficiently. #3 Data Centers are Getting Greener  As awareness of the environmental impact of data centers has grown, so too has the pressure on businesses to operate in a more sustainable way. As a result, many data centers are now adopting green practices, such as using renewable energy, recycling waste heat, and using more efficient cooling systems. Adopting these practices not only helps to reduce the environmental impact of data centers, but can also lead to cost savings. As energy costs continue to rise, businesses that have adopted green practices will be better positioned to remain profitable. #4 The Cloud is Here to Stay  The cloud has caused some big changes in the data center industry, and its impact is only expected to grow in the years to come. The cloud offers a number of advantages over traditional data center models, including increased flexibility, scalability, and cost-efficiency. As a result, more and more businesses are moving to the cloud.  The cloud is also having a major impact on the way data centers are designed and operated. As more businesses move to the cloud, data centers are becoming more standardized and simplified. This trend is expected to continue as the cloud becomes an increasingly integral part of the data center industry. Looking to the future, it's clear that the data center industry is undergoing a period of major change. Businesses that are able to adapt and take advantage of these changes will be well-positioned for success.

The data center industry is in the midst of some major changes. Here are five of the biggest shifts that you need to know about. Timing: The data center industry is facing a shift in timing, as developers are doing what they can to try to keep up with the demand. Providers have a goal to sign leases which is leading to a land rush dynamic, as companies are attempting to lock in space sooner rather than later. This rush is being driven by the need for reliable and consistent power, as well as the rise of cloud services. One example of this can be seen in Northern Virginia. This is a historically reliable market, but with recent power delivery challenges, providers are looking to submarkets around Ashburn and even other major market markets for opportunity. Pricing: The industry is also seeing a shift in pricing as providers are raising rates and customers are becoming more selective. This shift is being driven by the increasing costs of operating data centers, which is being passed on to customers. In some markets, prices are increasing by as much as 20%. Due to this high demand, data center lease rates are coming at a premium rate. Types of development: One of the major types of development changes occurring in the data center industry is an increase in build-to-suit (BTS) projects. In the past, most data center developments were either owner-occupied or speculative builds that were subsequently leased out. However, BTS projects are becoming more common as companies look for turnkey solutions that meet their specific needs. This shift is being driven by the increasing complexity of data center operations, which has made it more difficult for companies to find space that meets their requirements. International Focus: Another change in the data center industry is a shift in focus from domestic to international markets. In the past, most data center development was concentrated in North America. However, this is changing as companies look to expand their operations into new markets. This shift is being driven by the increasing global nature of business, which has made it necessary for companies to have a presence in multiple countries. Site Selection: The data center industry is also seeing a change in site selection criteria. In the past, most data center development was concentrated in urban areas. However, this is changing as companies look to lower their costs by locating data centers in cheaper, less-developed areas. This shift is being driven by the increasing costs of operating data centers in urban areas, which has made it more expensive for companies to locate their facilities there. These are five major shifts that are occurring in the data center industry. Each of these changes are driven by a different factor, but they all have one thing in common: they are all making it necessary for companies to adapt their operations to meet the changing demands of the market. As the data center industry continues to evolve, these shifts will continue to shape the way that companies do business.

The North American data center industry is expected to experience significant growth in the next few years. There are several factors driving this growth, including the rise of big data and cloud computing, and the increasing demand for colocation services. In this blog post, we will take a closer look at the North American data center market and explore some of the key drivers behind its growth. The data center industry is growing rapidly in North America, thanks to the increasing demand for cloud services. As the world continues to grapple with the ongoing pandemic, the data center user is increasingly turning to cloud technologies to meet their ever-changing needs. The pandemic has created a surge in demand for data storage and processing power as businesses strive to remain agile and responsive in the face of unprecedented challenges. At the same time, the pandemic has led to a scarcity of capacity in some data center environments, as providers struggle to keep up with elevated demand. As a result, the data center user is increasingly turning to cloud providers for their data storage and processing needs. While the pandemic has created challenges for data center users, it has also presented opportunities for cloud providers to expand their reach and address the needs of a new generation of data center users. With the increasing popularity of cloud computing, many businesses are looking to take advantage of the scalability and flexibility of this type of infrastructure. However, migrating data and workloads to the cloud can be a daunting task. There are a number of factors to consider, such as data security, compliance, and performance. In addition, many businesses are reluctant to give up control of their data and applications. As a result, there is a growing demand for data center services that can help businesses make the transition to the cloud. These services can provide the expertise and resources needed to plan, design, and implement a successful cloud migration. In addition, they can also help businesses manage and optimize their data center operations. As more businesses move to the cloud, data center services will become increasingly important. Data centers are becoming more efficient due to new technology and design innovations. Data centers are the backbone of the modern economy, housing the servers and networking equipment that power our online world. As data demands have grown, so too have data center energy requirements. However, data centers are becoming more efficient due to new technology and design innovations. By using data center management software, operators can monitor server utilization and make real-time adjustments to conserve energy. New server designs are incorporating energy-saving features such as advanced cooling systems and low-power processors. Additionally, data center operators are increasingly looking to renewable energy sources to power their facilities. By using solar, wind, or hydro power, data centers can reduce their reliance on traditional energy sources and help to reduce greenhouse gas emissions. As the data center industry continues to grow, we can expect to see even more innovation in energy-saving technologies. The future looks bright for the data center industry, as demand for cloud services continues to grow. The data center industry is poised for strong growth in the coming years, as demand for cloud services continues to increase. This is good news for data center operators, as they will be able to capitalize on this growing market. In order to meet this demand, data centers will need to expand their capacity and invest in new technologies. This will require a significant amount of capital, but the potential return on investment is high. The future looks bright for the data center industry. If you're looking for a data center information in North America, Europe, or APAC, we've got you covered. Be sure to check out our insigh

Get a 15 minute demo of our platform: https://lp.datacenterhawk.com/request-a-demo?utm_source=youtube&utm_medium=youtube&utm_campaign=demo ––––– In this episode of our series “Big Topics”, we are discussing data center investing with Josh Pang, Head of Digital Infrastructure for Carlyle Infrastructure Group. Carlyle is a global investment firm with over $300B of assets under management and Josh has over 15 years experience in infrastructure investment.  In this conversation, we cover several unique variables in data center investment. Current Data Center Investing Environment Valuations multiples remain high across the data center sector. The pace has accelerated as investors gain confidence in the long term trend supporting data center growth and demand. With record high valuations, investors are utilizing a buy-and-build” strategy for speed to market. Secondary EU and APAC markets are garnering more demand as well. Edge Computing is starting to show profitable and sustainable use cases due to densification of networks, lower latency deployments, and proliferation of fiber capacity. Sustainability and Power Constraints Demand for green data centers is growing. Environmental, Social, and Governance (ESG) is becoming a focus across the industry. Carlyle prioritizes their focus on green energy and has partnered Birch Infrastructure for green data center solutions. Many approaches are being utilized to manage power more effectively to reduce consumption in light of emerging constraints. Increased demand is expected in spite of various challenges in the industry.  Please share and like this video if you found this information helpful and be sure to stay tuned for our next episode!

Senior Vice President of Advisory & Transaction Services at CBRE, Brant Bernet discusses the history, current key components, and future trends in data center site selection. In the first episode of our series “Big Topics”, David is discussing data center site selection with an expert on this topic, Senior Vice President of Advisory & Transaction Services at CBRE, Brant Bernet. With decades of experience in data center real estate, Brant walks through the history of site selection, key considerations in site selection, and the future of data center site selection. History of Data Center Real Estate Innovation has improved the experience of site section in the data center real estate market. In earlier years of the industry, brokers would fly to proposed locations with a “toolbox” stocked with multiple items that are now all replaced by a smartphone. Tools such as Google Earth and Fiber Locator have reduced the need for physical tours and simplified connectivity research.  Key Components of Data Center Site Selection Colocation providers, hyperscale users, and crypto miners are driving data center real estate market development. The need for large land parcels and a pathway for the largest power requirements in industry history are creating challenges in site selection. Land parcels of this size can only be found in certain areas and are decreasing in volume which is pushing demand to secondary markets. Due to rising land costs in response to the pandemic and increasing power demand, clients have a desire to move quickly in site selection. To do so, clients are utilizing land banking and are seeking powered shells or sites to scale rapidly. Users are also less opposed to traditional risks when factors such as connectivity, location, and availability are in their favor. Future Data Center Site Selection Trends As costs go down, opportunities for renewable energy will be attractive to clients in the future. Improvements in construction and volume of demand will lead to the selection of sites previously not preferred. Tertiary markets will continue to take on the burden of growth in response to the unwavering demand.  Please share and like this this video if you found this information helpful and be sure to stay tuned for our next episode on data center construction!

What is a Hyperscale Data Center? With the different types of data centers, here’s how we can clarify exactly what we’re talking about: A data center is a building that houses an organization's servers and IT equipment. There are private or enterprise data centers that specifically serve as a resource for the businesses that own them, as well as multi-tenant or colocation data centers that serve the public. When people refer to “hyperscale data centers,” they’re most often referring to the customers who own or lease a given data center, as well as the size. Companies who use hyperscale data centers will either build/lease 20+ MW at a time or will gradually expand to that number over time in 1-3 MW chunks. So a hyperscale data center is one that either is built by a hyperscale company itself, or one that’s designed to meet that company’s needs. Hyperscale Data Centers: The Where, How, and What’s Next Capturing tomorrow's opportunity starts with a clear understanding of where the largest data center users are today, and this landscape is continually changing. In Q1 of 2022, the data center industry is coming off the most active quarter it’s ever had. Whether or not that trend will continue starts with looking at where hyperscale data centers are located today and how they’re poised for growth tomorrow. Roughly 40% of hyperscale data centers are in the United States — specifically, Northern Virginia, Northern California, Phoenix, Dallas, and Chicago — where hyperscale development and leasing continues to boom. Right behind the US, China currently hosts 10% of the world’s hyperscale sites, followed closely by Japan, Germany, the UK, Australia, Canada, India, and Singapore. When looking at companies that are continuing to grow their hyperscale data center presence, Amazon Web Services primarily builds in Northern Virginia (1747MW, 238 Leased), Microsoft primarily leases (26MW built, 235 leased), and Facebook primarily leases in Northern Virginia (242MW, 0 built), but has built in Dallas (150MW), Oregon (226MW), and Des Moines (171MW). Hyperscale Data Centers: How They’re Impacting the Data Center World When it comes to leasing wholesale and build-to-suit data center space, hyperscale companies are controlling the demand, making them the primary customer who decides how data centers develop worldwide. In order for colocation providers to capture some of this demand, they need to have a strategy for how to approach land acquisition, development, and a sustainable path to growth. Developers are already pursuing “land banking” strategies where they acquire land for future projects in markets that currently lack development sites. As developers work to buy land where a decrease in premium sites has led to an increase in price, places like Northern Virginia and Phoenix are experiencing accelerated growth. While the cost of the lease and the cost of power are both factors, hyperscale companies are emphasizing scalability in terms of what future growth could look like. Instead of only asking how much this capacity will cost today, hyperscale developers must also think about how much it will cost to increase the power usage in the future. The Future of Hyperscale Data Centers In addition to the steady growth in traditional markets that’s showing no signs of slowing down, hyperscale data centers are starting to pop up in small markets. Google has now built 277MW in Omaha, Amazon has 204MW in Columbus, and Facebook has 156MW in Albuquerque. While building increases in these smaller markets, leasing demand continues to surge in the traditional markets with companies like Apple and Oracle leasing in places like Northern Virginia and Chicago. For anyone hoping to keep an eye on this growth as well as what it means for the future of hyperscale data centers, we’ve created a tool dedicated to helping you understand and construct your own hyperscale strategy. Click the link at the top of this post to receive a demo of our tool.

Want to see how datacenterHawk can help you make better decisions? Get a quick 15 minute demo of our platform: https://lp.datacenterhawk.com/overview?utm_source=youtube&utm_medium=youtube&utm_campaign=demo ––––– 0:00 - Intro & PTC Recap 3:24 - Hyperscale Demand in North America 10:27 - Growth in Secondary European Markets 15:20 - Planned Power Growth in Sydney ––––– We produced our 4Q 2021 podcast, going over the data center trends in North American, European, & APAC markets, on LinkedIn Live. This is the recorded version of the podcast. Comment below if you have any additional questions you would like us to address.

Want to see how datacenterHawk can help you make decisions around data centers? Get a quick 15 minute demo of our platform: https://lp.datacenterhawk.com/overview?utm_source=youtube&utm_medium=youtube&utm_campaign=demo NVIDIA’s Director of Solutions Architecture, Director of Engineering, share their insight on the growth of AI and its impact on edge computing. In this interview with NVIDIA, Rama Darbha, Director of Solutions Architecture, and Roopa Prabhu, Director of Engineering, share their insights on the industries driving edge computing, the impact of AI on the data center industry, and future AI innovations affect on the footprint of the data center industry. Edge computing, AI, & data centers Edge computing and storing capabilities are utilized by several industries in different capacities and artificial intelligence (AI) is a major driver of this need. Manufacturers use edge computing to deploy real-time decision making AI in autonomous cars. Retail providers use edge computing in robotics with many applications from warehouse management to theft prevention. Providers utilize edge storing capabilities to host geographically decentralized regions, to name a few examples of edge users. Highlights from NVIDIA’s GTC conference Rama and Roopa discuss the many AI innovations emerging that were addressed during NVIDIA’s annual GTC conference. AI and other similar data heavy technologies are increasing demand in the data center industry calling for the infrastructure to respond quickly to this evolution. With technological improvements, data centers are poised to accommodate more data and take on new opportunities in edge computing and AI. NVIDIA aims to partner with companies to provide various solutions through AI enabled systems.

Interested in Hyperscale data centers? Sign up for our free hyperscale data center course: https://lp.datacenterhawk.com/hyperscale-business-development-fundamentals Or get a quick 15 minute demo of our platform: https://lp.datacenterhawk.com/overview?utm_source=youtube&utm_medium=youtube&utm_campaign=demo ––––– As CEO, Mike Sicoli led INAP through financial restructuring in the middle of the Covid pandemic, all while continuing to focus on the importance of offering a wide array of services in this increasingly hybrid world. Being able to offer a suite of different connectivity and hosting options is important in today’s market and Mike believes we’re still on the front end of businesses transitioning to hybrid. So many companies still have most of their operations on premises, from an enterprise standpoint. For them, the potential of public and private Cloud is just starting to open. For various reasons, particularly cost and the speed that a private Cloud edge networking setup can offer, a large chunk of data and operations will never see the public Cloud. Hybrid is here to stay. So, the trick is helping clients navigate this complex set of options, and making it work well without jumping through too many hoops. Clients can feel more secure about their future when they deal with a company that has a lot of diversified services and assets. No matter where their journey takes them, a company like INAP will be able to help them out. No Cloud hosting decision is binary, or fixed, or irrecoverable. Flexibility in infrastructure design is more critical than ever. Mike believes that the hardest job in the corporate world falls on the shoulders of the CIO, or the person in charge of the IT infrastructure. Some of the decisions they make can take months or years to play out. So, when they need to be more agile and flexible, moving their spend around, it’s important to work with them rather than stubbornly forcing them to stick to an architecture that might no longer be valid. So, the two programs that they offer are service portability and a performance guarantee. It means that if the customer doesn’t feel like INAP is performing up to their standards, they can leave without penalty. Some of the big, specialist infrastructure providers play a ‘gotcha’ game with clients, locking then into a three-year, five-year, or even longer contract with no flexibility. To keep a client happy in the long term, it’s much better to offer flexible terms, rather than muscle them with business or legal threats. That leads to more business referrals and better word of mouth. Mike admits that the geographic portability clause can be a little nerve wracking, particularly when cost structure varies from territory to territory. But it’s important to make that work to keep clients happy. He wants them to be excited when they talk about INAP, seeing them as part of the solution and not part of the problem. Mike’s Take on Industry Challenges and Exciting Trends One of the biggest challenges right now is making the hybrid experience as easy to consume as possible. There needs to be more automation, more options for self-service. Clients want services that work seamlessly across all platforms, no matter where they’re being hosted. INAP’s entire near future roadmap is centered around enhancing automation and self-service, that’s how important ease of use has become. Edge networking is the other big challenge. 5G and IoT might be drivers towards this trend, but there will be so many applications for it soon. And though public Cloud will play a role, security and performance factors will necessitate that a lot of that activity takes place on private Cloud infrastructure.

Interested in Hyperscale data centers? Sign up for our free hyperscale data center course: https://lp.datacenterhawk.com/hyperscale-business-development-fundamentals Or get a quick 15 minute demo of our platform: https://lp.datacenterhawk.com/overview?utm_source=youtube&utm_medium=youtube&utm_campaign=demo ––––– 0:00 - Intro 0:56 - 2021 2:15 - 2021 Demand 5:09 - 2021 M&A Activity 8:12 - 2021 Future Supply 11:10 - 2022 Market Size 13:12 - 2022 Absorption 15:00 - 2022 Vacancy 16:23 - 2022 Pricing 22:04 - Q&A ––––– Join us as we look back at the main trends in the data center industry that took place in 2021. We'll also look ahead to 2022 and let you know our thoughts on what the data center industry will look like as we get ready to jump into the new year.