Increasing adoption of digital technologies across multiple industry verticals could positively impact the micro data center business growth. Considering these aspects, Global Market Insights estimates the micro data center market could reach $15 billion by the year 2026.
The advent of new-age computing technologies has advocated the construction of new data centers. Generally, the distance between a data center and an end user can affect the delivery of digital services with high bandwidth costs. Micro data centers solve this issue by enabling the effective deployment of edge computing.
In terms of application, the micro data center market comprises colocation; banking, financial security, and insurance; government; energy; industrial; health care; and IT and telecom. Out of these, the colocation services segment is expected to record immense traction over the forecasted timeframe. Building a new data center can be expensive, especially for small and medium-sized businesses that have budget constraints. As a result, colocation services provide a cheap alternative for businesses to store their vital data.
Colocation services minimize additional expenses incurred for powering and cooling equipment and the overall cost on IT infrastructure. Various colocation providers are integrating micro data centers in their portfolios to broaden their market reach and consumer bases. Taking August 2020 for instance, EdgeMicro released five new micro data centers in the U.S. as spending on edge technology from cloud vendors, such as Google, Microsoft, and AWS skyrocketed. The company will construct these centers in Indianapolis; Cleveland; Houston; Pittsburgh; and Memphis, Tennessee.