2022 Global Data Center Market Comparison

Introduction

The last two years have been remarkable in many ways. Industries across the board have been confronted with change and disruption—and the data center industry has been no exception. In early 2020, many businesses faced a sudden and heightened need for greater cloud technology to connect a dispersed workforce and enable people to do their jobs in a work-from-home environment. The trend continued in 2021 as cloud migration accelerated, the need for data centers continued to grow and as major data- producing platforms—companies like Google, Amazon, Microsoft, Alibaba, Apple and others—spread their data center footprints throughout the world. Today, the question is no longer whether the largest hyperscale data center users will expand to new regions each year, but how many will expand and how quickly. One prominent change is how markets are developing. Historically, data center markets emerged when telecom companies—and later, colocation operators—built the first facilities and established footholds. But today, many of the hyperscalers that dominate cloud, network and internet services can enter a new or relatively immature market and simply begin a major build. This shift has led to rapid increases in market size, particularly in cities across Southeast Asia, South America, and soon, Sub-Saharan Africa. We anticipate secondary markets will continue to benefit as certain primary markets restrict power usage and as sustainability demands put pressure on the industry.

Indeed, widespread data center proliferation has led to concerns in many key markets across the globe. For example, Singapore and Amsterdam are locations with deep data center capabilities, but neither has removed moratoriums on new data center development declared in recent years. Each is only allowing previously-approved projects or small-phased buildouts to go forward. Ireland, too, recently considered a moratorium before ultimately choosing a more consultative approach with the industry. These types of challenges to data center growth emphasize the responsibility operators face in three areas. First, the ability to source renewable energy, if not available locally. Second, the ability to develop better methods of cooling servers. And third, the ability to design more efficient facilities to meet the sustainability goals of clients and of the countries where the data centers operate. It’s in this time of both great demand and prolific expansion—but also amidst an increasing focus on sustainability in parts of the world—that we publish this third annual edition of our Global Data Center Market Comparison. As with previous editions, we assess data center markets across the globe within 13 different categories to determine the top overall markets as well as the top performers in each of the 13 categories. With near- universal growth expected across most markets in 2022, we hope this report sheds light on potential locations for investing in, owning and operating data center facilities.

30 Research Sources 1,333 Data Centers

55 Global Markets

We define hyperscalers as the largest occupiers of data center facilities, usually the major cloud services that are leading absorption and market growth across the globe.

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