A recent report by global real estate giant JLL has unveiled a fascinating projection for the edge data centre market, estimating it to burgeon into a US$317 billion industry by 2026. This represents a remarkable 107% growth from its valuation of US$153 billion in 2020.
The report casts a spotlight on the continual climb of ‘data-dependent technologies’ such as Artificial Intelligence (AI) and the Internet of Things (IoT), which are poised to necessitate substantial IT infrastructure backing from edge data centres.
JLL elaborates on the concept of an edge data centre, describing it as a facility designed to bring computing capabilities closer to the location where data is either produced or consumed. This proximity is crucial for enhancing processing efficiency and reducing lag times.
The expansion of edge computing on a global scale is not merely a byproduct of several emergent technology-driven megatrends but also the pressing need for accelerated data transfer and substantial computational power. Currently, organisations are leveraging edge data centres to handle and scrutinise data in real-time right at the network’s periphery. This real-time processing capability facilitates swifter decision-making and amplifies operational efficiency.
JLL forecasts that investments in edge IT infrastructure, specifically data centres, will experience a compound annual growth rate (CAGR) of 9.8% over the next five years. This projection is further substantiated by a 2023 survey of data centre professionals conducted by JLL, which underscored the importance of low latency and high bandwidth as primary drivers for the deployment of edge data centres.
In practical terms, businesses that are in pursuit of these enhanced services, including cutting-edge generative AI (Gen AI) technologies, are expected to vigorously explore the potentials offered by edge capabilities. Jonathan Kinsey, EMEA Lead and Global Chair, Data Centre Solutions at JLL, points out that without the distributed mode of data processing and storage, these advanced digital solutions would struggle to sustain their functionality within mainstream applications.