GenAI Growth to Drive Data Center Investment in 2025: GlobalData
Data center infrastructure stands at the crux of the generative AI
(GenAI) revolution, as the power-intensive algorithms behind platforms like
ChatGPT rely on vast hardware and energy resources. Consequently, investment in
data centers is expected to rise in 2025, with cloud providers dedicating
significant financial resources to expanding facilities to support cloud services
and AI-driven applications, according to GlobalData.
GlobalData's latest report, "2025 Enterprise
Predictions: Data Center", reveals that in 2025, colocation providers like
Equinix, Vantage, NTT, Digital Realty and Vertiv will continue to grow driven by
increasing demand for AI services by customers in numerous industries. These
companies are expected to expand their real estate using economies of scale to
scout increasingly harder-to-find data center locations.
Beatriz Valle, Senior Analyst for Enterprise Technology and
Services, GlobalData, said, "Enterprises will continue to resort to
colocation providers to deploy their AI infrastructure rather than build their
own facilities. This eases the complexity associated with deploying and
operating AI-driven workloads at scale and outsource any liabilities associated
with the upkeep of the data centers.
"Colocation facilities provide enterprises with not just
power and cooling, and a safe location for their equipment; they also connect
those systems to a range of telecommunications and network service providers at
a fraction of the cost. Enterprises are looking at colocation data centers for
not only AI, but also for bringing workloads that are no longer economical out
of the public cloud and into their own private one, hosted at the 'colo',"
said Valle.
GlobalData predicts on-premises workload deployments will
endure, and a massive cloud exodus remain elusive. Although most organizations
continue to migrate workloads to the cloud to benefit from digital transformation
and application modernization initiatives, it is now becoming apparent that
some workloads are not designed for cloud computing deployments.
"Put simply: some critical workloads in specific
industries are not designed for the cloud. Industries managing particularly
sensitive data, such as finance, healthcare, life sciences and some government
sectors, face up to so much complexity, it is not worth the trouble. In
addition, some geographies have stricter regulation and compliance, creating the
need for data sovereignty," said Valle.
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