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Growth Opportunities in the Data Center Services Industry, 2024

  • Report

  • April 2024
  • Region: Global
  • Frost & Sullivan
  • ID: 5976374

The AI Megatrend Drives Growth Opportunities for Data Center Services and Drives Industry Transformation

Artificial intelligence (AI) adoption is increasing rapidly across industry segments and functional use cases, significantly impacting the way businesses create and deliver value. Generative AI has accelerated the awareness of the transformative impact of AI and the potential of leveraging the technology to create business value. As AI adoption continues, workloads also demand significantly unique digital infrastructure to support business outcomes.

Data center service providers have been witnessing intense competition in the global and regional colocation landscape. While the AI revolution is creating unique challenges for legacy infrastructure and data center builds, it is also opening up new revenue growth avenues and opportunities to create greater customer value and drive strategic differentiation. Colocation service providers must not only provide adequate space and power but also design facilities aligned with growth strategies and design technologies. Accelerating AI advancements will drive innovation in the data center industry, and service providers must reinvent existing facilities and planned digital infrastructure. Flexible and customized infrastructure that supports AI architectures for effective model training and inferencing will be essential in the changing technological landscape. This study discusses the global state of AI adoption and its impact on the data center colocation industry.

Table of Contents

Transformation in the Data Center Colocation Services Industry
  • Why is it Increasingly Difficult to Grow?
  • The Strategic Imperative 8™
  • Impact of the Top 3 Strategic Imperatives on the Data Center Services Industry
Growth Generator
  • Enterprises Recognize the Importance of AI/ML in Achieving Business Priorities
  • Improving Operational Efficiency is a Key Driver for Enterprise AI Investments
  • Enterprise AI Deployments are Moving Beyond the Proof-of-Concept Stage
Growth Opportunity Analytics
  • AI-driven Data Center Industry Transformation
  • Strategy & Services
  • Scale
  • Location
  • Design: Ultra-High-Density Colocation Capabilities
  • Design: Liquid Cooling Technologies
  • Sustainability
Growth Generator
  • Growth Drivers
  • Growth Restraints
Companies To Action
  • Digital Realty
  • Empyrion Digital
  • Equinix
  • ST Telemedia Global Datacentres
Growth Opportunity Universe
  • Growth Opportunity 1: Hyperscale AI-ready Data Centers
  • Growth Opportunity 2: Edge Data Centers to Support AI Inferencing
Appendix: Survey Respondent Details
  • Research Objectives and Methodology
  • Survey Respondent Profile
Best Practices Recognition
  • Best Practices Recognition
The Radar

Next Steps
  • Benefits and Impacts of Growth Opportunities
  • Next Steps
  • Take the Next Step
  • List of Exhibits
  • Legal Disclaimer