Report: Data center infrastructure falls to a handful of developers

July 22, 2010
Frost & Sullivan says that enterprises are increasingly turning to 3rd party providers for some or all of their data center infrastructure needs.

MOUNTAIN VIEW, Calif. -- The commercial data center market is undergoing significant growth and change, fueled by a confluence of factors, including demand for computing and storage resources, powerful next-generation computing equipment, accessibility by remote users, and power and cooling issues. New analysis from Frost & Sullivan's Stratecast division (, The U.S. Data Center Market 2010, finds that the third-party data center market size exceeded 108 million sq. ft. in 2009 and is expected to reach 177 million sq. ft. in 2010.

Within this environment, the research firm says that enterprises are increasingly turning to third-party providers for some or all of their data center infrastructure needs. Faced with inadequate internal data center space, they are willing to use outsourced solutions ranging from leased raw space, to co-location facilities, to dedicated hosting.

At the same time, the firm notes interest is surging in a newer model for purchasing data center infrastructure. Cloud computing has introduced a "just in time" element to data center infrastructure, allowing businesses to lease computing resources as needed from third-party providers, with pay-per-use or utility pricing. This model promises users ultimate scalability without the burden of investing in additional equipment, or the time required to set it up.

Related News:BICSI releases data center design standard
Related News:Harris taps Lee Technologies to construct Tier III, LEED Silver data center

Who, then, shoulders the investment and time burden?

"The data center business is, at the end of the day, highly capital-intensive," explains Lynda Stadtmueller, Senior Research Analyst and co-author of the study. "From real estate and construction, to power and cooling distribution systems, to configuring IT and networking equipment, creating a data center requires significant investment, as well as a long time to make it user-ready."

Moreover, Stadtmueller adds, "As enterprises and service providers increasingly turn to third-party infrastructure providers, the burden of ensuring an adequate supply of data center infrastructure to satisfy their hunger for capacity falls to a handful of data center developers."

If interested in more information on this study, please send an e-mail to Jake Wengroff, Corporate Communications, at [email protected], with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Visit Frost & Sullivan

More Data Center News

More Comms Connectivity News

Sponsored Recommendations

Cat 6A Frequently Asked Questions

April 29, 2024
At CommScope we know about network change and the importance of getting it right. Conclusion Category 6A cabling and connectivity.

Revolutionize Your Network with Propel Fiber Modules

Oct. 24, 2023
Four sizes of interchangeable Propel fiber modules provide the breadth of capabilities for virtually any configuration.

Elevate Your Network with Propel High-Density Panels

Oct. 24, 2023
Propel Series Sliding Fiber Optic Panels

Constellation™ - Explore power and data products

Oct. 24, 2023
Discover the Essentials for Building Your Power and Data System!