by Angela Guess

A new press release out of the company reports, “Technavio analysts forecast the global data center market to grow at a CAGR of close to 11% during the forecast period, according to their latest report. The research study covers the present scenario and growth prospects of the global data center market for 2016-2020. The market is dependent on the construction of innovative data center facilities worldwide. Geographically, the market is segmented into the following regions: APAC, EMEA, and the Americas. Technavio ICT analysts highlight the following four factors that are contributing to the growth of the global data center market: Increased spending on cloud data center; Increased use of big data analytics; Growing IoT; Need for colocation and managed service data centers; Increased spending on cloud data center.”

The release continues, “Many cloud service providers (CSPs) construct cloud data centers that cost up to billions of dollars to offer cloud-based services to end-users and enterprises. These CSPs include AWS, Microsoft Azure, and Google Cloud. Growing SMEs prefer to run their business operations through CSPs, colocations, and web hosting cloud data centers due to benefits such as scalability, reliability, and cost reduction. CSPs such as AWS, Microsoft, and Google operate more than 100,000 servers worldwide to meet the increasing business demand. The rise in demand has necessitated the need for automation in cloud data centers. Many cloud data centers are termed as mega data centers, which consume large quantities of power during peak data-intensive operations. There is an increase in innovations in the design and deployment of these data centers. The enterprises spending on cloud data centers was USD 38 billion in 2015, and it is expected to reach USD 75 billion by 2020 at a CAGR of around 14.57%.”

Read more at BusinessWire.

Photo credit: Technavio