Top 15 Trends That Will Shape the Data Center Industry

In the ever-evolving landscape of data engineering, analytics, and business intelligence, staying ahead of the curve is not just a strategic advantage but a necessity. The data center industry, a cornerstone of these technological advancements, is transforming. For higher management, chief people officers, managing directors, and country managers, understanding and adapting to these data center industry trends is paramount for sustainable growth and efficiency.

As we delve into the top 15 trends shaping the data center industry, we must recognize their profound impact on businesses, especially those engaged in data-centric services. Let’s explore how these trends are set to redefine the way organizations approach data management and processing.

Edge Computing Emergence

According to a report by MarketsandMarkets, the edge computing market is projected to reach $15.7 billion by 2025, growing at a CAGR of 34.1% from 2020 to 2025.

One of the most influential trends in the data center industry is the rise of edge computing. As organizations seek faster and more efficient data processing, edge computing brings the computation closer to the data source, reducing latency and enhancing real-time analytics. These data center industry trends means optimizing data workflows for managing directors and country managers for faster insights and decision-making.

Prediction: By 2025, edge computing will become the data center industry standards architecture for data processing in industries such as healthcare, finance, and manufacturing. The integration of 5G technology will further accelerate the adoption of edge computing, with a predicted 30% increase in businesses implementing edge computing solutions over the next three years.

Sustainability in Data Centers

The U.S. Department of Energy reports that modular data centers consume about 2% of the total electricity generated in the United States, with an annual electricity cost of $7 billion.

As corporate social responsibility takes center stage, sustainability becomes a critical consideration for higher management. Enterprise data centers are no longer a mere trend but a necessity. Managing directors must align their data center strategies with eco-friendly initiatives, ensuring efficient energy consumption and reduced carbon footprint, in line with the expectations of environmentally-conscious consumers.

Prediction: In the next five years, sustainable practices in colocation data centers will be key to business vendor selection. Industry leaders will set ambitious sustainability goals for carbon-neutral or even carbon-negative data center operations. This shift will not only be driven by corporate responsibility but also by consumer demand for eco-friendly services.

AI-Driven Automation

According to a survey by Gartner, by 2022, 65% of CIOs will digitally empower and enable front-line workers with data, AI, and business process automation.

For chief people officers, integrating artificial intelligence (AI) in data center operations offers a significant advantage. AI-driven automation streamlines processes, enhances efficiency, and reduces the burden on human resources. This allows skilled professionals to focus on strategic decision-making and innovation, creating a more dynamic and competitive environment for the business.

Prediction: By 2024, AI-driven automation will be a standard feature in 80% of data center operations. This will significantly reduce human error, increase operational efficiency, and cost savings for businesses. The role of IT professionals will evolve towards more strategic and innovative tasks, aligning with the growing demand for data-centric services.

Hybrid Cloud Adoption

According to Flexera’s State of the Cloud Report 2023, 82% of enterprises have a multi-cloud strategy, and 72% have a hybrid one.

The flexibility of hybrid cloud solutions reshapes how managing directors approach data storage. A hybrid cloud approach allows for a seamless integration of on-premises and cloud-based solutions. This provides scalability and ensures data security and compliance, crucial considerations for businesses dealing with sensitive information.

Prediction: The hybrid cloud model will dominate the data center landscape by 2023, with 70% of businesses utilizing a combination of on-premises and cloud solutions. The integration will be seamless, facilitated by advanced management tools, ensuring a balance between data security, compliance, and scalability for businesses like Brickclay.

Cybersecurity Prioritization

According to the Cost of Cybercrime Study by Accenture, the average annual cost of cybercrime for organizations increased by 15% in 2023, reaching $13 million per year.

As data breaches become more sophisticated, cybersecurity is no longer an afterthought but a top priority. Higher management and country managers must invest in robust cybersecurity measures to protect sensitive business data. This includes adopting advanced encryption methods, implementing multi-factor authentication, and staying abreast of the latest security technologies.

Prediction: With cyber threats becoming more sophisticated, cybersecurity budgets will increase by 20% across industries by 2025. The focus will shift from reactive measures to proactive threat intelligence, with a rise in the adoption of AI-powered cybersecurity solutions. Businesses will invest heavily in training and awareness programs to mitigate the human factor in cyber vulnerabilities.

5G Integration

A report by Statista estimates that by 2026, the number of 5G connections worldwide will reach $3.5 billion.

With the advent of 5G technology, data transmission speed and reliability are set to unprecedented levels. Managing directors must explore how this technology can be harnessed to improve data center connectivity and enable faster device communication. These data center industry trends open up opportunities for businesses to provide enhanced analytics and intelligence services in a hyper-connected world.

Prediction: The widespread deployment of 5G networks will lead to a surge in connected devices, necessitating a 40% increase in data center capacity by 2024. This growth will drive innovation in data center architecture to accommodate the increased demand for low-latency, high-bandwidth applications, providing new opportunities for data engineering and data center services.

Data Privacy Compliance

According to a study by Cisco, 51% of organizations reported a data breach, a 15% increase over 3 years that resulted in a significant loss of revenue in 2023.

As data protection regulations tighten globally, chief people officers and managing directors need to be vigilant about compliance. Adhering to regulations like GDPR and ensuring data privacy avoids legal repercussions and builds client trust. A proactive approach to data privacy demonstrates a commitment to ethical business practices, which is crucial for the reputation of companies.

Prediction: Stricter data privacy regulations will emerge globally, focusing on cross-border data protection. By 2023, businesses prioritizing and demonstrating robust data privacy practices will gain a competitive edge. Non-compliance will result in severe financial penalties and reputational damage, emphasizing the need for a proactive and comprehensive approach to data protection.

Increased Focus on Remote Management

The Remote Workforce Report by OWL Labs states that 77% of respondents worked from home during the pandemic, and 80% expect to work remotely at least three times a week after the pandemic.

The shift towards remote work has accelerated the need for remote management capabilities in hyperscale data centers. Higher management and country managers must invest in technologies that enable secure remote access, monitoring, and management of data center operations. This ensures business continuity and resilience in the face of unforeseen disruptions.

Prediction: The remote management data center industry trends will continue to evolve with the integration of augmented reality (AR) and virtual reality (VR) technologies. By 2024, managing directors can virtually oversee and interact with data center operations, improving responsiveness and decision-making in real-time, even from geographically dispersed locations.

Containerization for Efficiency

The Cloud Native Computing Foundation (CNCF) reports that 92% of surveyed organizations use containers in production.

Containerization, facilitated by technologies like Docker and Kubernetes, revolutionizes how applications are deployed and managed. For managing directors, embracing containerization in data center strategies leads to more efficient resource utilization, scalability, and easier application deployment. It also aligns well with the agile principles that drive innovation in businesses.

Prediction: Containerization will become the de facto standard for application deployment, with a 50% increase in containerized workloads by 2025. This shift will lead to a more dynamic and scalable IT environment, allowing businesses to respond swiftly to changing market demands. Container orchestration tools will play a pivotal role in ensuring seamless management.

Software-Defined Data Centers (SDDC)

MarketsandMarkets predicts that the global Software-Defined Data Center (SDDC) market size will grow from $43.7 billion in 2020 to $120.3 billion by 2025.

SDDCs are gaining prominence for their ability to abstract and automate infrastructure tasks. These data center industry trends are especially relevant for chief people officers and managing directors looking to optimize resource utilization and reduce operational costs. SDDCs provide a more agile and flexible infrastructure that adapts to the changing demands of data center services.

Prediction: The adoption of SDDCs will reach a tipping point by 2024, with 60% of data centers fully or partially transitioning to a software-defined model. This shift will empower managing directors to allocate resources dynamically, reducing operational costs and enhancing overall agility. SDDCs will become a cornerstone in pursuing a more adaptive and responsive infrastructure.

Multi-Cloud Environments

The Flexera 2021 State of the Cloud Report reveals that 92% of enterprises have a multi-cloud strategy.

The era of relying on a single cloud provider is evolving into a multi-cloud approach. Managing directors should explore the benefits of distributing workloads across multiple cloud platforms, mitigating risks associated with vendor lock-in, and enhancing redundancy. These data center industry trends align with data management strategies’ need for flexibility and resilience.

Prediction: The multi-cloud approach will continue to evolve with the rise of specialized cloud services catering to specific industries. By 2023, managing directors will strategically leverage diverse cloud providers to optimize performance, reduce costs, and mitigate risks associated with dependency on a single vendor.

Data Center Interconnectivity

According to a report by Research and Markets, the global Data Center Interconnect (DCI) market is projected to reach $6.4 billion by 2025, growing at a CAGR of 14.5% during the forecast period.

Interconnecting data centers is becoming crucial for managing directors overseeing multiple branches or locations. These industry trends involve creating high-speed, reliable connections between data centers to facilitate seamless data exchange. This ensures a unified and efficient data ecosystem for businesses with a global presence.

Prediction: Data center interconnectivity will become even more critical, leading to the development of standardized protocols and technologies. By 2024, businesses will seamlessly interconnect their edge data centers, creating a global network that facilitates efficient data exchange and redundancy, enhancing the overall resilience of data-centric services.

Focus on Data Governance

A survey by Experian indicates that 69% of organizations are investing more in data governance due to the increased focus on data privacy and compliance.

As data becomes a strategic asset, chief people officers must emphasize robust data governance. Establishing clear policies for data quality, integrity, and security is essential. This ensures compliance and enhances the data’s trustworthiness, a critical factor for analytics and business intelligence services.

Prediction: The importance of data governance will intensify, with a 25% increase in businesses implementing advanced data governance frameworks by 2025. Chief people officers will play a crucial role in fostering a data-driven culture, ensuring employees are well-versed in data ethics and compliance, ultimately strengthening the integrity and reliability of business-critical data.

Rise of Quantum Computing

IBM reports that the IBM Quantum Network has grown to include more than 120 organizations, including Fortune 500 companies, startups, academic institutions, and research labs.

While still in its infancy, quantum computing holds immense potential for transforming data processing capabilities. Managing directors should monitor developments in quantum computing and assess how they could impact data analytics and business intelligence services. Early adoption strategies may provide a competitive advantage in this rapidly evolving landscape.

Prediction: While still in the early stages, quantum computing will start to impact data processing in niche applications by 2025. Managing directors should prepare for a paradigm shift in data analytics and business intelligence, as early adopters gain a competitive advantage in solving complex problems that were previously computationally infeasible.

Collaboration with Managed Service Providers

According to a study by MarketsandMarkets, the global Managed Services market size is expected to grow from $223.0 billion in 2020 to $329.1 billion by 2025.

In the complex realm of data center management, collaborating with managed service providers (MSPs) is emerging as a strategic move for higher management. MSPs offer specialized expertise, allowing businesses to focus on core competencies. These data center industry trends enable cost-effective and efficient management, freeing up resources for innovation and data center industry growth.

Prediction: Collaboration with managed service providers will become the norm, with 80% of businesses engaging in strategic partnerships by 2024. This trend will enable higher management to focus on innovation and core business functions while MSPs handle the intricacies of data center management. The partnership model will evolve to offer more specialized and customized services, enhancing overall efficiency.

The data center industry is transforming remarkably, driven by technological advancements and evolving business needs. 

As edge computing, sustainability, AI-driven automation, hybrid cloud adoption, and other trends reshape the data center landscape, proactive and strategic decision-making becomes imperative. By aligning strategies with these data center industry trends, businesses can unlock new efficiency, agility, and competitiveness levels in the dynamic world of data engineering, analytics, and business intelligence services.

How can Brickclay Help? 

Brickclay, a leader in data engineering, analytics, and big data, offers a suite of services tailored for businesses aiming to thrive in the digital era. Our strategic data engineering enhances operational efficiency for managing directors and country managers, while our customized analytics and data center solutions empower informed decision-making. With expertise in hybrid cloud integration and AI-driven automation, we optimize workflows, ensuring scalability for sustained data center industry growth. 

• Strategic Data Engineering: Streamlining processes for enhanced operational efficiency.
• Customized Analytics: Transforming raw data into actionable insights for informed decision-making.
• Business Intelligence Solutions: Providing a competitive edge through comprehensive market insights.
• Hybrid Cloud Integration: Ensuring seamless and secure integration of on-premises and cloud-based systems.
• AI-Driven Automation: Optimizing workflows and reducing operational overheads.
• Data Security and Compliance: Implementing robust cybersecurity measures for safeguarding sensitive information.
• Global Presence, Local Expertise: Combining international reach with a nuanced understanding of regional challenges.
• Scalable Solutions for Growth: Adaptable services that grow with evolving business needs.
• Proactive Data Governance: Establishing clear data quality, integrity, and security policies.
• Collaboration with MSPs: Partnering seamlessly with managed service providers for expert data center management.

Brickclay’s commitment to data security and compliance and a global-local approach provide businesses with a secure and culturally sensitive foundation for their data-centric operations. Collaboration with managed service providers further allows higher management to focus on innovation, confident that their data center is in expert hands.

Contact us today for inquiries or to explore how Brickclay can elevate your data strategies. Your data-driven future starts here.