Global data center market revenue is expected to reach $342.10 billion by 2023, up from $321.37 billion in 2022, according to Statista. The data center market was valued at $316.30 billion in 2021, up 6% from $298.30 billion in 2020.
The most significant investments in the market are expected to come from colocation service providers and hyperscale data centers.
The continued explosion in AI and ML has not surprisingly placed new strain on data center power and processing resources.
Looking ahead to 2024, data center operators are in the midst of an exciting time that presents both challenges and opportunities.
Corning Optical Communications, a leader in the fiber optic cable industry, identified 3 predictions for data center operators in 2024.
Michael Crook, market development manager - data centers, sees the following on the horizon:
- Long-awaited edge computing: As AI applications are developed, companies will look for processing power closer to where the application is being utilized. That means data centers will focus on keeping the heavy compute closer to where the data is actually being used.
- The rise of multi-tenant data center spaces: Hyperscale operators design and build the largest data center campuses. But with the increasing power and land requirements necessary to support AI, ML, and other emerging applications, hyperscalers, and others may need to look at alternative methods to build facilities even if it’s just for a single purpose, like an AI network.
- The advancements in optical transceivers: More data can be placed onto optical wavelengths. In return, we’ll see a higher rate optical transceivers that operate with fewer fiber connections, benefiting our data center customers by reducing cable congestion within a rack and improving air flow.