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Spiraling Capital Investments from Large Technology Companies to Propel Mega Data Centers Market

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Published on : Apr 10, 2017

Albany, New York, April 10, 2017: The report on mega data centers market provides a comprehensive insight into the current status, key dynamics, emerging computing trends, technological advances, and competitive landscape. The research study takes a closer look at the key offerings of the leading companies and evaluates the strategies adopted by them to consolidate their revenue across major regions. 

The research analysis highlights the emergence of disruptive technologies is expected to fuel the demand for mega data centers among various end users in the coming years. The report analyzes the factors that are instrumental in triggering large-scale investments by leading technology companies such as Apple, Google, and Microsoft, in building mega data centers. 

The pressing need for consolidation of data centers among enterprises to minimize their infrastructure cost and maximize profits is a key factor stimulating the demand for mega data centers worldwide. The imperative to reduce both capital and operational costs has led a large number of organizations focusing on fewer IT centers for their data virtualization needs. The concomitant benefits of low energy prices, higher tax incentives, and the availability of alternative energy sources are expected to offer an impetus to the mega data centers market. In addition, the growing need for automations in various applications layers of IT infrastructure have led enterprises of all sizes to adopt the services of mega data centers. 

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The soaring popularity of cloud computing has offered a considerable push to the demand for mega data centers worldwide. Constant advances in internet of things (IoT), proliferation of data from wireless devices, and increased use of video content are some of the key developments expected to spur the demand for mega data centers. Allied to this, the surge in smartphone apps and gaming platforms that encapsulate the combination of augmented and virtual reality has led to an explosion of video content to be managed.  The growing use of wearable devices and smart home appliances has led to newer sources of data. As a result, there is also a spike in demand for bandwidth, creating promising opportunities for market players

Five of the largest technology or internet companies such as Apple, Facebook, Oracle, Google, and Microsoft, are increasingly moving toward data center consolidation in order to scale their profits. They are making substantial investment in building mega data centers globally. The aggregate capital spending by the top companies swelled to more than $115 billion during the past 14 quarters. In the second quarter of 2016, CAPEX at these five companies increased by a significant mark of 60.5% over the same quarter in 2014. The rate of CAPEX in several other big internet firms have been increasingly steadily over the past decade, which is expected to create new revenue streams in the mega data centers market.  

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