Powerhouses of the Digital Era – The Growing Trend of Data Centers: Market Insights from S&ME Director of Diversified Markets, Jeff Doubrava, PE
May 14, 2024
In the digital age information reigns supreme. Data center technological powerhouses serve as the nerve centers of the digital world, housing and processing vast amounts of data that drive everything from online transactions to social media interactions and beyond. As our reliance on digital infrastructure continues to deepen, the demand for data centers has soared, marking a notable trend in the market.
The Rise of Data Centers
Data centers have evolved from humble beginnings to become the backbone of modern computing. Initially, they were primarily used by large enterprises to store and manage their data. However, with the proliferation of internet-connected devices, cloud computing, and big data analytics, the need for scalable, secure, and reliable data storage and processing solutions has increased. Revenue in the Data Center market is projected to reach $110.00B in 2024 with an annual growth rate of 5.97%.
Several emerging trends are reshaping the data center market landscape that impact data center design and site selection:
- Digital Transformation: Businesses across industries are undergoing digital transformation initiatives to stay competitive in a rapidly evolving landscape. This shift involves migrating data and applications to the cloud, driving the demand for cloud-based services and, thus, data center infrastructure.
- Increased Connectivity: The proliferation of devices, ranging from smartphones and wearables to smart appliances and industrial sensors, generates massive volumes of data. Data centers play a crucial role in processing, storing, and analyzing this data to derive actionable insights and enable real-time decision-making.
- Big Data and Analytics: Organizations are increasingly leveraging big data analytics to extract valuable insights from large datasets. Data centers equipped with high-performance computing resources are essential for processing and analyzing these vast amounts of data efficiently.
- Artificial Intelligence (AI) and Machine Learning (ML): AI and ML technologies are revolutionizing various industries, from healthcare and finance to manufacturing and retail. These applications require substantial computational power and storage capacity, driving the demand for advanced data center infrastructure.
- Remote Workforce: The shift towards remote work, accelerated by the COVID-19 pandemic, has highlighted the importance of robust digital infrastructure. Data centers enable seamless remote collaboration, communication, and access to critical business applications and data.
Data Center Design + Construction Trends in the AEC Industry
What to expect in design and construction trends from the high-growth space:
- Modular and Scalable Designs: Data centers are increasingly designed with modular components that can be easily scaled up or down to meet changing capacity requirements. This modular approach allows for rapid deployment, flexibility, and cost efficiency, enabling data center operators to adapt quickly to evolving business needs.
- Efficient Cooling Systems: Cooling accounts for a significant portion of a data center’s energy consumption. To improve efficiency and reduce operating costs, data center designs are incorporating innovative cooling technologies such as containment systems, hot aisle/cold aisle configurations, and economizers. Additionally, some data centers are exploring alternative cooling methods like liquid cooling to achieve higher levels of efficiency.
- Renewable Energy Integration: Sustainability is becoming a priority for data center operators, leading to an increased focus on renewable energy sources. Data center designs are incorporating features such as solar panels, wind turbines, and onsite energy generation to reduce reliance on traditional power grids and minimize environmental impact.
- Enhanced Security Measures: Data center security is a top concern due to the sensitive nature of the information stored and processed within these facilities. Modern data center designs incorporate advanced security measures such as biometric access controls, video surveillance, intrusion detection systems, and physical barriers to protect against unauthorized access, cyber threats, and physical attacks.
S&ME Data Center Projects
Over the years, our S&ME teams have supported numerous Data Center projects across the country providing due diligence environmental services, geotechnical engineering during design, and construction testing/special inspections services.