Multi-Tenant Data Center Market Size | Top Manufacturers Analysis, Emerging Trend and Growth Forecast to 2030

Due to the lockdown and restrictions imposed, many business operations have shutdown. Many governments and organizations have postponed their infrastructure activities due to COVID-19. This crisis has further highlighted that the need of the hour for digital infrastructure is to improve connectivity for remote and rural areas.

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Hence, edge data centers are becoming more viable options for vendors, especially start-ups. It has put high pressure on end-user companies to support remote working and are fast-tracking their cloud and digitization journeys. Company, such as Equinix, claims that this will boost the domestic data center market.

Rapid growth in the IT industry across the globe is one of the key factors creating a positive outlook for the market. Furthermore, rising internet usage of daily activities and the growing adoption of software-defined data center (SDDCs) are also influencing the multi-tenant data center market growth. MTDCs help in overcoming the limitations of physical and organizational boundaries between the service providers and multiple enterprises.

The expansion of online shopping worldwide is anticipated to upkeep the market growth over the next seven years. An increase in the number of online shoppers translates to the generation of increased data volumes in the retail sector. They are also used in healthcare centers to manage patients' records and health monitoring and laboratory systems.

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Another factor driving the growth of multi-tenant data centers is the growing popularity of green data centers. The consumption of electricity and increase in carbon emission by data centers globally is creating awareness among enterprises of green data center facilities. The adoption of software-defined data centers (SDDCs) along with growing internet traffic will be a driving factor in the multi-tenant data center market during the next few years.

The healthcare industry is one of the most divergent and demanding industries. This industry has become heavily dependent on a computing and communication foundation. The healthcare infrastructure handles patients' electronic records, health monitoring, laboratory systems, and regular business operations.

Increasing regulations on data acquisition and records, especially the ones related to clinical trials, are attracting several healthcare clients towards data centers. There are several government initiatives taken up globally, which will further boost the market.

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Multi-tenant data center market is expected to have significant growth in the Asia-Pacific region due to large-scale outsourcing of managed hosting services in this region. China has witnessed a rise in its hyper-scale platforms, owing to which providing data center services for Chinese hyper-scale platforms have become necessary.

The multi-tenant data center market is fragmented and consists of a limited number of large-scale data center colocation service providers and numerous small-scale vendors. The increasing number of colocation centers will intensify the level of competition among the players during the forecast period. The challenges faced by the multi-tenant data centers market include data security concerns and inflexibility of some multi-tenant data centers.

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