Global Investment Levels Up to 22.1%
Census results indicate that total investment in data centers has grown from approximately $86 billion globally in 2011 to $105 billion globally in 2012 – an increase of 22.1%.
Nicola Hayes, Managing Director of DCD Intelligence, comments: “Our forecast for 2013 shows a slower growth rate but still a very healthy 14.5% above 2012 levels with an additional investment of $15 billion.”
The largest increase (22.5% globally) in investment from 2011 to 2012 was in Facilities Management and the Mechanical and Electrical area, including areas such as the distribution of electrical and switching equipment, UPS systems, generators, cooling equipment, security equipment, fire suppression systems, and data center infrastructure management systems (22.5% increase globally 
). Investment in this area increased by $5 billion, from $40 billion to $49 billion.
The IT equipment sector (including 'active' equipment such as servers, storage, switches, and routers) showed slower growth at 16.7%, rising from $30 billion to $35 billion. Growth is projected for 2013, but at a slower pace.
According to Hayes, “Much of the growth in investment in the sector is being driven by growth in less developed markets – although we continue to see growth in the mature data center markets of North America and Western Europe. Regions such as Asia Pacific and Latin America are the ones really driving global data center investment levels.”
'Concern' over energy availability is waning.
Commenting on the responses to the 2012 Data Center Census regarding energy availability and cost worldwide, Hayes notes: “Surprisingly, concerns about energy availability and costs—both of which have been constant topics in the media and among data center professional groups in recent years—are currently decreasing globally.
This is partly explained by the increasing representation of companies from less developed markets in the sample, where energy requirements are lower and less constrained than in mature markets. It is also partly due to the efficiency and other strategies implemented by data center companies in the past 12 months to mitigate rising energy costs and overcome availability issues.”
The data center construction industry will increase sharply in 2013.
The global trend of data center 'white space' – the area in a data center that houses IT equipment – grew worldwide by a relatively low 8.3% from 24 million square meters to 26 million, although the strongest increase will foreseeably occur in 2013 with 19.2% and 31 million square meters.
Significant Increase in Outsourcing:
There has been a significant increase in the adoption of outsourcing worldwide – particularly colocation – over the past 12 months (up 31.3% from $16 billion to $21 billion) and is expected to continue with an additional increase of $5 billion in 2013.
The reasons for this in Western economies include the need to reduce capital expenditures (CapEx) in these challenging economic times, as well as the increasing complexity of the data center sector.
However, the strongest growth in outsourcing is occurring in the Asia-Pacific region, where the large-scale expansion of colocation facilities is encouraging companies to outsource rather than lease or purchase their own space.
Commenting on the results, Zahl Limbuwala, chairman of the BCS Data Centre Specialist Group (whose 1,400 members strongly represent all functions and facets of the industry, from engineering and software to legal), said, “The results of the 2012 DCD Industry Census strongly support the qualitative trends our members have seen over the past year.”
“The DCD census figures support the continued investment BCS is committed to making in the sector through initiatives such as the CEEDA Awards and data center qualification.”
By region:
Asia Pacific.
The results of the DatacenterDynamics global census show the speed at which the data center market is growing in Asia Pacific. Total investment in the sector is up 24.2% from 2011 to 2012, with China showing the highest level of growth in the region. Census forecasts predict that this growth will continue throughout 2013.
This region also shows the greatest growth in energy consumption, with a 48.6% increase in data center energy requirements over the past 12 months, compared to a 5.3% increase in energy requirements in the more developed North American market. Nicola Hayes, Director of DCD Intelligence, comments, “These figures reflect the significant growth that has occurred in the region over the past 12 months, as the market moves to a higher level, and also highlight a potential energy supply challenge in the coming years.”
Latin America:
The results of DatacenterDynamics' global census show that the data center sector in Latin America has experienced significant growth over the past 12 months, although the market remains fragmented across the region. Investment in the sector has grown by 31.4%, from US$10.5 billion in 2011 to US$13.8 billion in 2012.
Most facilities are owned and operated by small-scale end users, in terms of individual data centers. This region has the lowest percentage globally of companies outsourcing their data centers to a colocation provider, although this is expected to increase in the coming years as the market matures and more modern colocation facilities enter the market. Power requirements are also increasing in the region, rising by 41.2% over the past 12 months. This is also expected to drive demand for colocation and outsourcing solutions in the sector.
North America:
The results of DatacenterDynamics' global census show modest growth in the North American data center market, especially when compared to Asia Pacific and Latin America.
Data center investment grew by 14% in the last 12 months, less than in previous years. Nicola Hayes, Director of DCD Intelligence, comments, "It's important to remember that this market is one of the most mature compared to other regions, and its growth rate will be lower than in developing markets." For example, although investment in the Latin American market has grown by 31.4% during the same period, the total investment amount is US$13.8 billion, compared to North America, where investment in the last 12 months is estimated at US$44.1 billion.
Despite the media hype surrounding energy requirements in the data center sector, these requirements have grown by 5.3% in North America. The census figures regarding energy use awareness, carbon emissions monitoring, and global energy tracking are also positive in the region, showing a growing commitment to reducing energy costs and addressing high PUE ratios.
Europe
has continued to show steady growth in investment levels. The results of DatacenterDynamics' global census show that data center investment in Europe grew by 13.6% between 2011 and 2012, rising from $40.5 billion in 2011 to $46 billion in 2012. Despite this growth, it appears modest compared to regions such as Asia Pacific and Latin America (24.2% and 31.4%, respectively). This growth is similar to that of the mature data center market in North America and Europe, where it still represents a significant proportion of total global data center investment ($105 billion).
