Newest Datacenter Market Study From 451 Research Finds That Over Half of Global Utilized Racks Will Be Off-Premises by 2024


Cloud and service providers are expected to drive the growth in datacenter capacity

New York, NY – September 18, 2019 – The newly released Datacenter Services and Infrastructure Market Monitor report from 451 Research, a leading technology analyst and advisory firm, indicates that over half of global utilized racks (excluding server rooms/closets/micro DCs/telco hubs) will be at off-premises facilities – including cloud and colocation sites – by year-end 2024.
451 Research DCSI market monitor global unilized racks distribution v2

"Across all owner types and geographic locations, cloud and service providers are driving expansion, with the hyperscalers representing the tip of the spear," said Greg Zwakman, Vice President of Market and Competitive Intelligence at 451 Research. "We expect to see a decline in utilized racks across the enterprise, with a mid-single-digit CAGR increase in non-cloud colocation, and cloud and service providers expanding their utilized footprint over 13%."

The Datacenter Services and Infrastructure Market Monitor was built on 451 Research's recognized industry-leading coverage of the global datacenter market. The new report provides an installed-base view of the total number of datacenter sites globally, and it also sizes the datacenter market in terms of datacenter count, space (square feet), power (kW) and racks.

"Our research leverages other 451 Research deliverables, such as the Datacenter KnowledgeBase [a detailed database of over 6,300 multi-tenant datacenters], Voice of the Enterprise end-user surveys, and other Market Monitor products," added Leika Kawasaki, Research Manager. "In doing so, we can expand our analysis around areas such as IoT's impact on datacenter providers, cloud and service providers' share of the datacenter market, and other derivative analysis."

Key findings from this report include:
  • Total worldwide datacenter installed-base growth will continue to slightly decline, at a -0.1% CAGR between 2019-2024; however, overall total capacity in terms of space, power and racks will continue to increase as organizations shift toward larger datacenters.
  • Server rooms and closets account for nearly 95% of total datacenters, but only 23% of total utilized racks in 2019.
  • A majority of enterprise datacenter space (60%) is accounted for by datacenters smaller than 10,000 square feet. 
  • The average multi-tenant datacenter (MTDC) is nearly nine times larger than an enterprise datacenter (excluding rooms/closets and micro DCs/telco hubs) in 2019.
  • The top six hyperscalers account for 42% of total cloud and service providers' utilized racks in 2019. This is expected to expand at an 18% CAGR, reaching 50.4% of the total by 2024.
  • Rack demand for supporting IoT workloads and IoT data storage is expected to grow at a 46% CAGR from 2019 to 2024 – accounting for 15% of total global datacenter racks by year-end 2024.
To request a media briefing regarding this Market Monitor, email media.inquiry@the451group.com. 

Contact your sales representative or email sales@the451group.com to find out how you can access the data or learn more about the research. 

About 451 Research 
451 Research is a leading information technology research and advisory company focusing on technology innovation and market disruption. More than 100 analysts and consultants provide essential insight through a combination of syndicated research and data, advisory and go-to-market services, and live events around the world. Founded in 2000 and headquartered in New York, 451 Research is a division of the 451 Group. Learn more and connect with 451 Research on Twitter and LinkedIn.

Consumer IoT accounts for the majority of total IoT connected devices, driven by the abundance of smartphones and tablets. However, this five-year analysis (above) of enterprise IoT endpoints shows there is substantial growth coming for IoT connected devices in enterprises. This will not only mean a greater share of enterprise IoT opportunity for companies to capitalize on, but this growth also has implications for the datacenter infrastructure and services, storage, server, security, networking, and other markets across the IT landscape as more data is processed at these endpoints.

“IoT is redefining the way companies develop new products and services, and ultimately how they deliver value to their customers,” said Christian Renaud, Research Vice President of IoT Research. “A key lesson from IoT deployments is how dissimilar they are to traditional IT workloads, in scale and in topology. The 451 Research IoT Market Monitor captures this complexity by breaking down the vast market into actionable use cases, industries, and geographies.”

This breakdown into granular areas is important because, according to Greg Zwakman, Vice President of Market and Competitive Intelligence, “companies understand that IoT is a massive opportunity but are often uncertain about how or where to effectively compete.”

Having a strong understanding of a company's specific IoT opportunity can mean the difference between success and failure in the market. With the IoT market opportunity expected to nearly quadruple in the next five years – growing from $172 billion in 2019 to $658 billion by 2024, according to 451 Research’s new IoT Market Monitor – there is plenty to gain, but only if companies can identify their specific opportunity area in such a vast market. The IoT Market Monitor offers the ability to drill down by region, vertical, or endpoints, making it a powerful tool for vendors and service providers to identify their key opportunities in the IoT market.

“By leveraging other 451 Research deliverables, such as the Voice of the Enterprise end-user surveys, we can expand our analysis around how much data is analyzed, the data landing locations and, therefore, the impact on edge, multi-access edge, cloud, enterprise datacenters, etc.,” added Leika Kawasaki, Research Manager.

To request a media briefing regarding this Market Monitor, email media.inquiry@the451group.com.

Contact your sales representative or email sales@the451group.com to find out how you can access the data or learn more about the research.