Tech Trends: A Look Inside the Data Center Industry in 2019 and Beyond

August 22, 2019 by Midlothian Economic Development

Tech-Trends-A-Look-Inside-the-Data-Center-Industry-in-2019-and-Beyond-2.0

With more than 2.5 quintillion bytes of data created every day, there is an urgent need for data centers to manage, store, and protect this ever-increasing volume of information.

And data usage is only going to grow moving forward. DOMO predicts that 1.7 megabytes of data will be created every second for every person on Earth by 2020.

As such, data centers will seek out innovative ways to increase operational efficiency, stay protected, and improve resource and energy usage effectiveness to remain successful.

Below, we explore some of the top trends the data center and technology industry can anticipate to take focus over the remainder of this year and beyond:

Security Will Take Center Stage

Naturally, data is the most precious asset in this sector, which is why cyber and physical security is of utmost importance. Providers are increasingly investing in their level of protection, especially considering there is a rising risk of cyber threats and intellectual property theft. 

For example, some providers are investing in more proactive solutions to analyze data from the physical center and monitor real-time locations of people and assets. This allows operators to stay alert of suspicious activity as well as add a layer of protection to the business’ reputation and customer data.

According to the 2019 SonicWall Cyber Threat Report, a record high of 10.52 billion malware attacks were blocked in 2018. Additionally, there was a 217.5 percent year-over-year increase in IoT attacks in 2018, an 11 percent increase in ransomware attacks, a 56 percent increase in web app attacks, and 3.9 trillion intrusion attempts. 

With these cyberattack stats in mind, it’s clear that security will continue to take center stage in the industry for the foreseeable future.

Partnering for Continued Success

There is an intrinsic power to partnering in the technology landscape, whether it’s through an acquisition or outsourcing with a third-party vendor. In the coming years, data center providers are expected to continue partnering with equipment and technology providers to innovate as well as improve cost savings and operational efficiency.

While data centers each have different needs, they all value the power of partnerships, particularly with companies who can provide equipment, customized modular designs, upfront lead times, and optimized spending efficiency.

Growth Is on the Upswing

Recent studies show that demand is “skyrocketing” for data centers, which is fueling more efficient facilities that are capable of hyperscale designs. Fortunately, the global data center industry is in a prime position to not only navigate economic uncertainty but meet these increased demands.

The average number of data centers per organization is 12, which is expected to increase to 13 over the next year and jump to nearly 17 over the next three years. The same report indicates that more than four data centers will be built over the next year and nearly five more over the next three years.

Continued Migration to Remote Locations

According to industry experts, data centers have been migrating away from major metro areas to more remote locations. This trend is being driven by a desire for lower latency — or the amount of time it takes to send information — and the need to elevate the end-user experience with improved connectivity, speed, and performance.

As data centers have flourished, fueled by growing demand for accelerated computing and applications, North Texas has emerged as a hotspot for industry activity. North Texas’ market is powering forward, boosted by names including Facebook, Digital Realty, Stream Data Centers, Equinix, and more.

Sometimes a remote location is just what an expanding company needs. And that desire for ample land may have played into Google's July 2018 decision to purchase 375 acres of land in Midlothian, located just 26 miles south of Dallas-Fort Worth.

Leveraging Analytics to Drive Efficiency

With demand on the rise and competition heating up, leaders will continue to leverage innovative solutions to improve efficiency and provide new capabilities to their end customers. According to the latest AFCOM State of the Data Center report, four solutions are leading the charge. 

About 70 percent of leaders are leveraging data analytics or plan to do so over the next year, and 60 percent are using big data solutions or will over the next year. Further, 46 percent utilize machine learning, and 42 percent are using artificial intelligence.

There is a lot that goes on inside a data center, from organizational growth, cloud computing, new applications, economic fluctuations, and more. With so many factors to manage, technology providers must stay protected and prioritize solutions — such as partnerships and innovative technologies — to ensure continued success.

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