Major trends expanding North America data centre server market size up to 2027

Author: Carly Weller

According to a recent study from market research firm Graphical Research, the North America data centre server market size is set to register a significant growth by 2027, due to the rising need for strong data security and storage systems. Large-scale organisations are making use of advanced technologies, such as IoT and AI, resulting in intense data traffic across various networks.

As per the Cisco Annual Internet Report, nearly five billion networked devices/connections will be established in North America by 2023, which would be an increase from the three billion connections achieved in 2018. Since MNCs in North America require a large-scale infrastructure to support the heavy flow of data traffic, the demand to have a stable and high-performing data centre server will multiply.

Large-scale organisations such as Cisco Systems, Dell Technologies, IBM Corporation, ATOS SE, and NEC Corporation, among many others, are involved in the creation of advanced technologies for data centre servers to turn them into smart machines. They are collaborating with other firms to acquire their know-how and build data centre infrastructure that is efficient, robust, and high-performing when it comes to handling large quantities of data.

North America data centre server market share will be valued at over $35bn by 2027.

The trends that will help achieve this industry forecast during 2021-2027 are mentioned below:

Increased installation of hyperscale data centres

North America is witnessing a substantial increase in the installation of hyperscale data centres. These data centres can be quite huge and are specifically designed to offer support to large-scale data operations in companies. Technology giants, such as Amazon, Google, IBM, Facebook, and Microsoft use hyperscale data centres to extract and supply massive volumes of data.

Many cloud service providers in North America are setting up large data centre as top-performing firms in the region are extensively using their services. For example, Google, in May 2021, announced that it was planning to purchase a property in Quebec, Canada for around $600m to expand its data centre setup in the country. The demand for data centre servers will grow to help hyperscale data centres handle enormous workloads.

OTT services fuel the demand for micro data centre servers

Based on the types of a data centre, micro data centre servers will be highly adopted by end-users in North America. Demand for over-The-Top (OTT) streaming services has increased among consumers in the region as they are a great source of entertainment and offer a wide variety of content. For instance, Netflix has around 73.9 million paid subscribers in the US and Canada as of February 2021.

The COVID-19 pandemic has caused a major shift in the way entertainment is consumed and has compelled customers to opt for online mediums, such as Netflix, Amazon Prime, and Hulu. It has caused many companies in North America to set up micro data centre servers to offer virtual streaming services at high speeds.

Large-scale commercialisation of 5G networks

The introduction of 5G technology and the growing commercialisation of these networks have created a positive impact on the growth of data centre server market size in North America. The US is predicted to hold a dominant position in offering 5G technologies to its customers. Four telecom pioneers in the country, namely T-Mobile, Verizon Wireless, DISH Wireless, and AT&T Mobility are implementing these networks on a large scale. The deployment of 5G technology has prompted organisations to create advanced and high-capacity data centre servers to manage a huge amount of data traffic every day.

Role of data centre servers in the BFSI sector

The BFSI sector in North America will set up data centre servers to cater to the rising era of digital transformation. Online and contactless payments are gaining traction among customers in the region. For instance, many banks in the US support Fitbit Pay, allowing clients to pay through their Fitbit device. The participants of the BFSI sector are implementing advanced technologies to enhance customer banking experience, resulting in the generation of heavy data traffic.

Banks and other financial institutions are increasing their investments in large-scale data centre infrastructure to help them efficiently handle the massive flow of information. These data centre will help the users in processing and supplying data in a safe and secure manner. They will offer the users high flexibility in data operations. North America data centre server market forecast is showing good progress as the installation of the small, medium, and large-scale data centre is growing at a notable pace in the region. Rack, blade, tower, and micro data centre servers are being used by a wide variety of sectors such as IT and telecom, BFSI, healthcare, government, energy, and manufacturing, among many others.