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 industries, which are instrumental to these technological advancements, are changing. In order for sustainable growth and efficiency, Chief People Officers, Managing Directors and Country Managers need to understand and adapt to these trends within the data centre industry.

We should however be cognizant of their impact on businesses especially those that operate in data centric services as we go through 15 top trends influencing the data center industry. These developments will reshape how organizations manage or process their information.

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 important current trends in this industry is edge computing. As organizations require faster and more efficient handling of information, edge computing has been introduced close to its origin reducing latency time as well as improving real-time analytic capabilities. Such industry trends within the data center mean that managing directors and country managers need to optimize workflows for speedier insights & decisions.

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.

Sustainability becomes imperative as CSR takes center stage among senior management while enterprise DCs are no longer a fad but necessary. Country managers must incorporate green initiatives into their data center strategies to facilitate efficient energy consumption, reduced carbon footprint in line with the expectations of environmentally motivated consumers.

Prediction: Over the next five years, sustainable practices in colocation data centers will be vital in making vendor selections by organizations. Carbon-neutral or even negative data center operations are ambitious sustainability objectives that industry leaders will establish. 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.

This is a significant advantage of integrating artificial intelligence (AI) into data center operations for Chief People Officers. In addition, AI-driven automation can lead to efficiency gains and process simplifications as well as reduce human resource costs associated with these activities. Skilled professionals can then concentrate on strategic decision-making and innovation thus creating a more dynamic competitive environment for the company.

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.

Managing directors’ attitude to data storage is influenced by flexible hybrid cloud solutions. This includes scaling and securing data for running businesses that deal with confidential 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.

With increasingly sophisticated data breaches, cybersecurity has become more important than ever before. Senior executives and country managers need to invest heavily in robust cybersecurity measures aimed at safeguarding sensitive business information. This entails adopting advanced encryption techniques, putting multi-factor authentication systems in place, and keeping up with 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.

The introduction of the fifth-generation mobile technology has revolutionized data transfer speed and dependability. Managing directors therefore have a duty to assess how this can enhance connectivity at their facilities and facilitate faster communication among devices. Consequently, this set of trends within the industry opens new opportunities for provision of enhanced analytics as well as AI services amongst other things throughout the internet-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.

With the global tightening of data protection laws, chief people officers and managing directors must be on their guard about compliance. Adherence to legislation like GDPR and protecting data from access prevents legal consequences and cements customer loyalty. Hence, observing ethical business practices such as proactive privacy measures is vital to the reputation of firms.

Prediction: Stricter regulation on cross-border data privacy will emerge globally. By this year, companies that prioritize rigorous privacy policies would have gained a competitive advantage. Fines and negative publicity due to non-compliance make it necessary for businesses to take an active approach towards safeguarding their information at all costs.

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 demand for remote management in hyperscale data centers has been hastened by the shift to remote work. This necessitates technology investments by senior management and country managers that can enable secure remote access, monitoring, and management of data center operations towards business continuity and resilience.

Prediction: Remote Management in Data Center Industry will Evolve with Augmented Reality (AR) and Virtual Reality (VR) Integration. By 2024, the managing directors will be able to oversee or interact with the performance of their data centers virtually from anywhere on earth; this enhances responsiveness as well as decision making in real time even if such persons are far apart geographically.

Containerization for Efficiency

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

Technologies like Docker and Kubernetes have made it possible to containerize applications, which has caused a shift in operative deployment processes and application management. On that note, for executive managers who want efficient allocation of resources in the data center environment, the adoption of containerization is strategic because scaling up or down can occur effortlessly besides simplifying application deployment while reflecting agile principles that drive innovation rates higher among companies.

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.

Moreover, SDDCs have gained popularity due to their ability to abstract infrastructure tasks automatically. These trends should be considered when determining how best data center resource utilization could be optimized at a lower operational cost, particularly for chief people officers and managing directors. In addition, SDDCs are more flexible which means that they can adapt to the changing needs 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.

We are moving away from reliance on one cloud provider towards embracing multiple clouds. Dividing workloads across several cloud platforms helps executive managers avoid vendor lock-in and increase redundancy rates. This is essential for providing stakeholder value; therefore, such industry trends conform to their very meaning about data management strategies that must be flexible and resilient.

Prediction:Multi-cloud Approach will Further Develop as Specialized Cloud Services Grow by Sectoral Focuses. Starting from this year up until the next two years’ time, managing directors will wise up and begin using various providers according to specific business needs in order to achieve optimal performance at minimized costs while avoiding risks linked to single-vendor dependency syndrome.

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.

Managing directors who oversee multiple locations or branches find it paramount to interconnect these data centers. This keeps them current with developing high-speed dependable links between data centers to share information quickly when required for planning purposes among others; hence, such an enterprise remains united and efficient across the globe.

Prediction:  The importance of interconnection of data centers will become even more important, with standardized protocols and technologies. By 2024, businesses will have edge data centers that are interconnected on a global scale thereby promoting efficient data exchange and redundancy which in turn increases the overall resilience of data-focused 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.

Strong emphasis must be placed on robust data governance as people officers move into a world where data becomes a strategic asset. This means establishing policies for quality, integrity and security around the company’s data, ensuring all legal requirements are met and the information is trustworthy enough for use in analytics or business intelligence systems.

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:As early as 2025 we will see quantum computing making inroads into niche applications requiring substantial computational capabilities. For example, managing directors need to prepare for fundamental changes arising from big-data analysis and artificial intelligence within their industries since early adopters of such quantum computer technology will gain a competitive edge in solving problems that were previously unapproachable due to computational limitations.

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.

Working with managed service providers (MSPs) is becoming a strategy for top management to respond to the complexities of data center management. Instead, they offer other businesses special expertise and can thus focus on their core competencies without losing track of developments elsewhere. These trends within the data center industry are creating efficient cost structure for managing such centers allowing resources to be freed up for innovation and growth within this industry.

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. 

Proactive and strategic decision-making becomes necessary when edge computing, sustainability, AI-driven automation, hybrid cloud adoption among others redefine the landscape of data centres. Businesses should therefore consider aligning their strategies with these trends to unlock new levels of efficiency, agility, competition in 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.