Showing posts with label Data Center Colocation Market. Show all posts
Showing posts with label Data Center Colocation Market. Show all posts

Wednesday, February 8, 2023

Future Outlook of South Africa Hyperscale Data Centre Market: Ken Research

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1.  Hyperscale Data Center Industry in South Africa has expanded at a double-digit growth rate in 2022 and is poised to climb further in 2027.

Data Center Industry in South Africa1

Hyperscale data centre sector in South Africa has grown at a CAGR of ~93% between 2017 and 2022. The surging growth is attributed to the increasing usage of digital and online platforms post-COVID-19. The increasing digital/online usage contributed to the growing demand for data storage capability, server hostage, and enhanced IT networks of enterprises. Social media usage increased from 64% in 2019 to 71% in 2020 due to the complete lockdown of the economy which resulted in the increased consumption of online content. Coupled with that, the increasing internet penetration rate between 2017 and 2022, resulted in heavy internet traffic, positively impacting the hyperscale data centre industry. With this, it is highly expected that the South Africa Hyperscale Data Center Market will grow with over 35% CAGR between 2022 and 2027E.

2. Revenue generated from large-sized hyperscale data centres contributed to the majority share of ~80% to the overall HSDC market in 2022.

Data Center Industry in South Africa2

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The revenue generated from large-sized hyperscale data centres contributed to the majority share of over 80% in 2022 out of the overall revenue generated by the hyperscale data centre industry. Demand for large-sized hyperscale data centre was driven not only by domestic customers, but also by a growing international client base in South Africa, attributed to its strategic geographic location, connecting Europe, APAC, and Middle-Eastern regions. Large-sized hyperscale data centre such as Dimension Data are adapting IaaS solutions to enhance their performance and strengthen their security measures in recent years.

3. Besides, revenue generated from extending network solutions to entities accounted for the highest share of ~40% in 2022.

Data Center Industry in South Africa3

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Revenue generated from extending network solutions to various enterprises occupies the maximum share in 2022 out of the overall revenue generated by the HSDC market. This is attributed to the ability of hyperscale data centres to house large IT networks of firms due to their infrastructural capability and bandwidth to extend a higher number of racks. Further, outsourcing data storage facility assists an enterprise in lowering their capital & operational expenditure costs, which resulted in storage solutions contributing to a 30% revenue share in 2022.

4. Low cost to enterprises and increasing data traffic are expected to enhance the demand for hyperscale data centre facilities in South Africa.

Data Center Industry in South Africa4

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Establishment of hyperscale data centers decreases the total cost of ownership of an enterprise due to optimal hardware infrastructure utilization, effective allocation of system workloads, and process transformation. In addition to this, increased awareness of environmental impacts and the government’s commitment to limit GHG emissions to 350-420 MtCO2e by 2030, is serving as a major growth driver for businesses to adapt to a process in which their data centers are utilizing the least amount of energy while having the least impact on the environment.  Moreover, the increasing internet penetration rate coupled with the rise in active internet users resulted in growing data traffic over the years. Simultaneously, due to increasing traffic, there exists a strong demand for data storage facilities ultimately contributing to the increased adoption of hyperscale data centers in South Africa.

Thursday, July 28, 2022

Data Center Colocation Market Growth is propelled by Presence of Many Growing Emerging Enterprises: Ken Research

Data centers have appeared as an inseparable part of modern business practices accountable for running critical business applications. IT infrastructure over the years has appeared as a necessity for enterprises that seek to run their businesses efficiently. As the requirement for data centers surged through the last couple of years, cloud and colocation became a vigorous asset for several businesses that demand to scale up their IT capabilities. Colocation data centers were a boon for enterprises that required quick IT upscaling; however, they lacked the proficiency or monetary resources demanded to do so.

According to the report analysis, ‘Data Center Colocation Market’ states that the market trends for data center colocation are principally driven by the augmenting demand from organizations to decrease the cost linked in the services of hosting servers and storages. The colocation vendor simply delivers the power, cooling, and appropriate environment for storing the hardware equipment of clients. The colocation providers also aim on delivering the proper bandwidth for high-speed data for several clients.

Massive data are generated through sensors and mobile applications these days. Around the globe, organizations are facing scalability problems in data centers and considering moving their hardware equipment to a third-party rather than shifting to cloud. Countless colocation vendors are aiming on enlarging their services in Middle East Africa and Latin America.

In addition, the report covers and analyzes the data center colocation market. The organizations preserve a rental relationship with the colocation merchants where colocation vendors offers the space storing electronic equipment. The foremost players in the market are adopting countless organic growth strategies, i.e., enlargement in new markets. The data center colocation assist in bringing easy alternative to hosting on-grounds infrastructure. It is typically accommodating for large enterprises which doesn't prefer to shift to cloud but are looking for scalable solution for the IT infrastructure.

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According to our analysis of data center colocation market, North America registers for the largest market share during 2019. With existence of several tier I companies in North America, the data center colocation is predicted to speedily increase in the US and Canada. Countless enterprises in this region are proactively looking for fields to decrease the costs in hosting servers and data storages. Asia Pacific is projected to grow substantially owing to the market possible in China, India, & Australia and investments in outsourcing of IT infrastructure. The data center colocation market is augmenting with an augment in colocation vendors who are enlarging its services and delivering the low-cost alternative to hosting on-premises IT equipment.

The Asia Pacific region is predicted to augment at a high CAGR due to the existence of many augmenting large & emerging enterprises growing its customer base. The significant implementation of data center colocation is predicted to be observed in BFSI and IT & Telecom. The colocation vendors are aiming on emerging markets such as Latin America and Middle East Africa. One of the imperative features that data center colocation deliver the is expertise in hosting scalable hardware equipment for several clients.

For More Information, Click on the Link Below:-

Global Data Center Colocation Market: Ken Research

Related Reports:-

Global Data Center Colocation Market 2020 by Company, Regions, Type and Application, Forecast to 2025

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