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5. Fewer Data Centers

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Decreasing number of data centers trends highlights

  • Data centers are facing the worst spending decline this year.
  • By 2021, the number of data centers is expected to drop to 7.2 million. (CBT Nuggets, 2018)
  • In 2024, data centers are forecasted to only account for 36.5% of total IT infrastructure spending worldwide.

Data centers, often hidden from sight, are the backbone of the Internet. However, In 2020, data centers were predicted to account for around 45% of total IT infrastructure spending. By 2024, that figure is forecasted to decrease to 36.5% (IDC/Statista, 2021).

Nowadays, fewer organizations are building their own data centers. There are many factors contributing to this decline. One such factor is the split between enterprises investing in computers and servers, and the service providers choosing to go into the enterprise or the consumer space.

The cloud is also eliminating some of the data center roles. It is one of the driving factors behind the declining number of data centers. With the number of enterprises having the cloud on their side, they don’t require infrastructures setting up data centers. This also affects the number of people needed to manage servers, storage, and networks.

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