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Data center. A data center is a central physical place used by organizations to store their vital applications and data. The design of a data center is based on networks of computing and storage is used as a resource to facilitate the process of sharing applications and data.  

The data center includes equipment to carry out the functions related to information and application. 

In modern times, instead of physical equipment to store applications and data, cloud-based storage systems are used to reduce the number of equipment required to set up a data center for a business. This way data center facilities of a company can be used on several other sites. 

Data center storage. Here, the type of equipment required to perform data center services is referred. These tools and technologies help the storage resources among its infrastructure. Some examples are tape drives, hard disk drives, NAS, RAID, and SAN, etc.  

These are the devices of the data center that is responsible for storing data and applications. These devices can directly or indirectly serve as backup, storage, networking device and also include the policies and procedures that govern the entire process of data storage and retrieval. The data center storage devices and technologies also include those devices that will protect the data in the data center and ensure proper checks for access control and verification authorization. 

Data center storage market. There are investments done at hyper-scale at data centers across the globe therefore addressed as a global data center storage market. This is because these data center storage devices have a market demand due to their uses. There are several countries that are opting to digitalize data and even digitalize money transactions. 

The data center storage market gets divided depending on the basis of deployment and application. The data center market is segmented on the basis of infrastructure such as IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, general construction, tier standards, geography. 

Investments are made to bring new inventions to save costs and make data center storage cost-efficient, bring new techniques for cooling equipment, etc. 


Internet of Things— such as IoT-driven technologies, including artificial intelligence, data and analytics, security, and communication  

Cloud storage—such as cloud computing services and applications continues to grow rapidly in demand, resulting in the introduction of large colocation cloud-based data centers. 

Submarine cable projects along the east coast—these are used for providing high-speed data from Europe and South America to the east coast, where they will be routed to data centers where they come ashore. 

Tax incentives—in recent years, data center growth has increased in regions that provide tax incentives, including state and local governments that provide investment incentives  


There is data center storage market demand due to the effectiveness of data centers. The data center is necessary due to the following reasons:     

Data centers are important to have security for their application and data, to share emails and files, manage customer relationships, main planning databases, support virtual desktops, communications, and collaboration services.

Benefits from outsourcing data center facilities: 

If a data center storage facility is outsourced, there are chances that there will be lower chances of power outages. Also, the data center in an organization is more prone to broadband issues and it is necessary for a company to have a constant supply of power to be on the server and provide efficient service.  

A particular organization whose primary service is to provide data center facilities will be more equipped with IT professionals who will be in a ready position or can quickly take action during an emergency compared to a company based on other types of services. In case of an emergency, company based on another type of service will need to contact an IT professional to care of during an emergency, and also it is not possible to have an IT professional all the time. 

If there is an outage of power in a company even for a 1/50 second, it could impact the IT industry for 15 minutes of unavailability which could also result in data loss. As data center storage companies are based on providing storage, the storage facility will also be more reliable due to fewer glitches compared to the technology which will be used in other companies.

Also, since the outsourcing companies are mainly based on providing better storage facilities, their financial investment in equipment and technologies will be mostly towards the data center technologies and storage devices.

It is estimated that between $200-$570 billion are lost due to power supply shortages and not to forget the price which will be required if data is not secured and any company falls prey to ransomware. Due to their investment in data center facilities, they will be able to provide more security and save costs for their customers.

Not to forget that HVAC equipment will also be required to maintain the data center storage tools and technologies, thus cutting down investment costs of companies further.

Both above features are important not only because they are cost-effective but also because they will increase the efficiency of the company. It is necessary to provide constant service to the customers otherwise there are several other companies competing from which the customers can choose.


The data center storage market is dominated by North America due to an increase in data centers and demand for IoT devices. 

The reason behind why the growth of the market is rising is due to the digitalization of various sectors such as healthcare, manufacturing, BFSI, and government which leads to an increase in the amount of data generated in a company, resulting in an increase in demand for data center storage solutions. Also, the presence of several tech giants like IBM, Microsoft, Oracle Corporations, HP Development, and many others increases demand for data center storage solutions.

The Asia Pacific data center storage solutions market is tending to expand at the highest CAGR during the forecast period. The increase in internet requirements and increase in the use of smart devices in developing economies result in an increase in the amount of data generated in developing economies. Developing countries require the internet also because the work needs to be done at a faster rate and generating numerous data which is not possible to record manually in time. Also despite a country being in any developing stage, the country needs to have its data secure and the company in that country needs to have the facility to store the data securely and is able to use the data effectively and remain effective till the very end-user.

Like every other industry, the global data center storage market was also affected by COVID-19.  

As the world was hit with covid-19, companies had to shut their outlets and resulting in a halt in their business activities. That is why the company is required to provide applications and data to several locations at a very fast rate for which more data center storage was required. 

As people and workers had to follow the lockdown rule, a digital way was searched to carry out the possible activities, like meetings which required long travels, now are done through video calls which leads to the generation of data, i.e., internet traffic. 

Cloud-based services also had an increase in demand as companies, governments were required to share data in a safe, secure due to their confidentiality. 

Revenue from the global data center storage market was supposed to grow at a CAGR of 4.5% during the period 2021-2026. 


There are several factors that affect data center management:

The data center holds several amounts of data inside it which is why it can be expected for the data center to crash, problems in the network, maintaining several wired connections.

It is sometimes not possible to have a constant level of output of service due to connectivity issues.

There are several tools and equipment involved resulting in a hectic schedule of monitoring and maintaining the key performance metrics in near real-time.

Data centers consume a lot of energy.

It is also necessary to determine whether the devices are running at full capacity, to check every device will also be a lengthy process.

In the case of cloud service, the cloud service provides their data center services to several companies which means it will narrow down options or lessen the work of hackers to perform an attack. This is because if a host data center cloud service provider is hacked then every company’s data in the cloud server will also be hacked. Also if a cyber-attacker wants to attack a particular company, the other company that is not a target will also lose their data to cyber attackers. This will further impact the reputation of the company in the market.


The storage market has the following key players in operating the global data center storage solutions market: 

Dell, Inc., IBM, Microsoft, Hitachi, Vantara, Huawei, HPE, Oracle Corporation, Fujitsu, and Net App.