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Home Technology Cloud and Platforms

Cloud and AI to influence APAC as nextgen DC hub

FutureIoT Editors by FutureIoT Editors
May 6, 2024
Photo by Christina Morillo from Pexels: https://www.pexels.com/photo/software-engineer-standing-beside-server-racks-1181354/

Photo by Christina Morillo from Pexels: https://www.pexels.com/photo/software-engineer-standing-beside-server-racks-1181354/

The acceleration of digital transformation initiatives including hybrid cloud deployments, Artificial Intelligence (AI) and Machine Learning (ML) solutions, and the implementation of the Internet of Things (IoT) at the edge network continues to generate usage and demand for next-generation data centres. ABI Research forecasts that next-generation colocation data centres will reach 7,640 sites by 2030, growing at a Compound Annual Growth Rate (CAGR) of 6.8%.

Data centres will continue playing an integral role in driving enterprises' digital operations. “Deployment of cloud-based solutions remains a top agenda for many enterprises, necessitating the demand for data centres. The rise of edge-to-cloud data management orchestration solutions increases the benefits of running workloads through a robust and well-equipped data centre,” says Yih-Khai Wong, distributed and edge computing senior analyst at ABI Research.

Data centres are undergoing a transformation phase. Wong argues that this is necessary as data and workloads are getting more complex, requiring higher processing capabilities. We are seeing an increasing demand for mega and large data centre sites that can support AI/ML workloads, including generative AI.

Asia Pacific (excluding China) will host the largest number of colocation sites by 2030, accounting for 28% of total colocation sites worldwide. Europe is the second largest region with 27%, while North America is third with 24%.

This represents a shift compared to 2023, when Europe had the most colocation sites, with 31% of total sites, followed by North America with 27%, and the Asia Pacific (excluding China) with 22%.

“The emergence of generative AI has also boosted demand for next-generation data centre capabilities. The processing of large language models (LLMs) will require a tremendous amount of data processing power and excellent network connectivity. Data centre operators will have to ensure that current and future data centre sites can meet the requirements generated from new technologies,” Wong concludes.

Related:  ABI Research: 5 challenges holding back IoT in the O&G industry
Tags: ABI Researchco-locationdata centre
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Asia’s ONLY dedicated IoT publication

The race to harness the power of Internet of Things (IoT) is here. FutureIoT is dedicated to individuals, as well as public and private organizations looking to tap the potential of IoT to transform the way we live, work and do business. FutureIoT is the dedicated media that provides the single source of truth about IoT, the technology, its application and regulation, originating from Asia. << Read more >>

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