Story image

Expert says data centres are investments with almost guaranteed profits

17 Sep 2018

Data is the backbone of today’s world and that’s good news for data centres and the people who work within them.

A report from real estate and investment services company CBRE found that last year investments in data centres reached US$20 billion, triple 2016’s total and quadruple 2015’s effort.

With staggering investments from the big players like Amazon, Microsoft, and Google, and the growing prominence of cloud computing, mobile payments, and IoT, this growth is showing no signs of slowing.

In law firm White & Case’s report on data centres, co-author James Dosworth asserts that it is “widely reported that 90 percent of the world's data was created in the last two years, which gives you an idea of the growth in [data centres]."

Technologies that are still developing like video streaming, connected cars, and IoT all require data centres that able to support billions of internet-connected devices. Meanwhile, companies in the midst of digital transformation and beyond are demanding data centres to store and manage their information.

A report from Digital Realty forecasts that by 2025, data centres in the UK alone will be worth $135 billion.

"Data centres create this value by providing and managing the infrastructure, connectivity and services that underpin success across the full range of economic activity," reads Digital Realty's report.

"This includes not only I.T. and financial services, such as powering high-speed trading platforms and cloud storage services, but also other sectors, such as agriculture, where data allows more precise use of pesticides, better adaptation to weather trends and automation such as drones to survey crops.”

The Cisco Visual Networking Index provides a rough idea of how much data the world will be consuming by 2021:

  • Annual global IP traffic will reach 3.3 zettabytes by 2021. In 2016, global IP traffic was 1.2 ZB per year or 96 exabytes (one billion gigabytes) per month.
  • Global IP traffic will increase nearly threefold over the next five years, and will have increased 127-fold from 2005 to 2021.

It’s clear then that data centres must grow in parallel, pushing them forward as an attractive investment. According to Viderium CEO Ross Archer, data centres blend the traditional with the novel. They offer long-term contracts and recurring revenues like conventional property, but they come with the added bonus of rapid growth prospects.

"As technical advancements continue to come from Silicon Valley and beyond, the demand for data centres, storage, and secure, encrypted transactions is rapidly growing," says Archer.

"One of the biggest sectors in focus at the moment is tech and data facilities, and because of this, we envision we will continue to see investment into these areas growing exponentially."

Server Technology beats out competition at DCS Awards
Server Technology has taken out the top spot for the Data Centre PDU Innovation of the Year at the DCS Awards.
LogRhythm releases cloud-based SIEM solution
LogRhythm Cloud provides the same feature set and user experience as its on-prem experience.
IGEL & ControlUp bring analytics to endpoints everywhere
The strategic partnership allows IGEL to integrate with ControlUp’s real-time monitoring and analytics capabilities via the IGEL Universal Management Suite (UMS).
Nutanix evolves multicloud offerings
Nutanix has expanded its multicloud solutions portfolio to further evolve its offerings across public and private cloud.
Bluzelle launches data delivery network to futureproof the edge
“Currently applications are limited to data caching technologies that require complex configuration and management of 10+ year old technology constrained to a few data centers."
Exploring the different needs for cloud services across Europe
Although digital transformation is happening across Europe, each country continues to have its own IT needs and the different cloud markets highlight this.
Trend Micro introduces cloud and container workload security offering
Container security capabilities added to Trend Micro Deep Security have elevated protection across the DevOps lifecycle and runtime stack.
Veeam joins the ranks of $1bil-revenue software companies
It’s also marked a milestone of 350,000 customers and outlined how it will begin the next stage of its growth.