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Global data center locations – turkey has the highest data center market growth
1. Global Data Center Locations – Turkey Has The Highest
Data Center Market Growth
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Globally there are more than half a million Data Centers, which occupy
about 290 million square feet of space. Global Data Center traffic is
expected to triple from 2.6 zettabytes in 2012 to 7.7 zettabytes in 2017,
at a CAGR of 25 percent. IBM, Google, Microsoft, Yahoo, Samsung and
Amazon are key companies dominating the Data Center markets.
About 45 percent of Data Centers in the world are located in US,
followed by Western Europe (UK, Ireland, Switzerland, Germany,
France, The Netherlands, Italy and Poland) with 25 percent, and Canada
at 3 percent. Latin America (Brazil, Argentina and Chile), India and
Australia each have about 3 percent of this market. The graph below is
an overview of the global Data Center spread.
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2. Source: Talent Neuron Research and Analysis
Emerging locations such as Turkey, Brazil and Argentina are witnessing
rapid growth in Data Center facilities. Tax incentives as well as the
availability of energy and real estate at subsidized rates are driving the
growth of Data Center market. The market in Turkey is growing at a rate
of 55 percent, followed by Brazil at 45 percent and Argentina at 40
percent. Russia and China indicate growth of 30 percent each. India and
Germany are growing at a rate of 15 percent while US and Canada are
at 10 percent.
The graph below indicates the IT Infrastructure Talent across key global
Data Center Locations
3. Source: Talent Neuron Research and Analysis
APAC locations such as Hong Kong and Tokyo have a large IT
Infrastructure talent pool which makes them favorable for data center
operations. Hong Kong and Tokyo have an installed talent pool of 13,730
and 12,800 professionals respectively, with the ability to be employed in
Data Centers.
Emerging Data Center locations outside US: Few global cities outside
US have managed to become data center hot spots for multiple IT
companies due to reliable infrastructure, skilled workforce and business
friendly regulations.
Slough (UK): Due to its proximity to London, Slough is a key area for
several businesses making it a strategic location for Data Center
operations. The city is an ideal location for Data Centers with the
advantages of dual power supply, comprehensive fibre network
connectivity and high levels of security. As a result of these benefits,
Samsung opened its Data Center in Slough in 2012.
Luleå (Sweden): Luleå benefits from Sweden’s high redundant power
grid that uses renewable hydropower and significantly developed
infrastructure. Sweden has one of the lowest electricity prices in Europe
with Luleå further having the lowest electricity prices in Sweden. The
region has a large number of skilled talent in the Data Center space with
expertise in areas such as distance-spanning technology, long-term
digital preservation and lower energy consumption of web technologies.
Facebook opened a 30,000 square meter Data Center in the city in 2013.
Reykjavik (Iceland): Availability of low cost abundant renewable
geothermal and hydroelectric energy makes the country suitable for Data
Center operations. Energy costs in the country are one-third the energy
4. costs in London. Further, the pool of IT infrastructure talent has been
steadily growing in the region and the removal of VAT (Value Added Tax)
on IT infrastructure has made Iceland more attractive for Data Center
operations. Data Centers in Iceland also benefit from fresh air cooling
leading to cost savings.
Singapore: Tax incentives by the local government have decreased the
cost of setting up new Data Centers in Singapore. The Infocomm
Development Authority of Singapore (IDA) offers incentives to companies
covering between 30% and 50% of capital expenses for retrofitting their
Data Centers with new, energy-efficient equipment. The city also has
reliable power supply and skilled Data Center talent.