Industry executives and experts share their predictions for 2024.  Read them in this 16th annual VMblog.com series exclusive.

The Future Remains Bright for Interconnected Colocation Facilities

By Bob DeSantis, CEO of 365 Data Centers

In 2024, the growth in data generation will certainly continue. So will the need to both store and transport existing and the expected incremental data. This bodes well for interconnected data centers, which not only serve as colocation facilities but are wrapped within a robust network ecosystem.

Colocation, in its essence, entails space, power, cooling and cross connects. However, the paradigm shifts when we delve into the realm of interconnected data center facilities. Here, the capability to seamlessly transport data across the digital network ecosystem distinguishes these facilities. We will see interconnected data center facilities become even more integral to the digital infrastructure evolution.

A recent report by JLL showcases just how much the increasing workloads and expansion of cloud services are driving a notable surge in demand for data centers. This has meant available colocation space is becoming scarce, which subsequently drives up prices. The report indicates that a significant portion of data center supply in the latter half of 2023 and throughout 2024 has already been pre-leased or is under exclusivity agreements. According to projections in the report, this imbalance in supply is anticipated to extend into 2025. In this new landscape, network-centric data center operators will benefit from their interconnected data center strategy.

Deployments in these types of facilities are becoming essential for both small-to-medium enterprises and large businesses alike. All businesses benefit from diverse and redundant connectivity options. Technological advancements, coupled with an escalating demand for seamless data exchanges, will continue to propel the value proposition of network-centric data center facilities.

2024 will see interconnected, network-centric colocation facilities also play a pivotal role in supporting next generation IT applications. Facilities that serve as important regional network hubs are more suitable for storage of and access to AI-driven high-density data sets.

We will see the surging demands of AI technology and edge computing in 2024 drive the need for high-density network-centric colocation space and power. AI applications often require high-speed and low-latency data transfers/connectivity to function optimally. The nature of AI involves processing large datasets and performing complex computations, which demands rapid data exchange between different components of the AI system. In the context of interconnected data centers, this entails the seamless and efficient transfer of AI-generated data between storage units, processing units, and potentially across different geographical locations. The need for quick and reliable data transfer is essential for real-time decision-making, training machine learning models, and ensuring the overall performance of AI applications. As a result, network-centric data centers, with their emphasis on robust connectivity and interconnectivity, are well-suited to meet the demands of AI data transfer. In tandem with edge computing, colocation operators deeply rooted in network-centric principles are optimally equipped to not only store but also transport the escalating volume of data in the most cost-efficient manner.

This will also mean designing data center suites tailored for AI-driven high-density colocation. These designs should support density ranges of at least 15-20KW per rack depending on the specific high-performance computing required. To meet these needs, it will also mean implementing innovative cooling solutions, effective heat dissipation mechanisms, and a commitment to utilizing more sustainable and renewable power sources. Having these scalable steps in place ensures that network-centric data center facilities will remain at the forefront, adeptly supporting the expanding needs of businesses and the broader digital ecosystem.

The consistent rise in data production and usage is showing no signs of slowing down. In the unfolding landscape of 2024 where the increasing volume of data will require ever more efficient storage and transport, network-centric data centers will play an elevated role in the overall digital infrastructure ecosystem. As we navigate this ongoing digital evolution, moving data efficiently, securely and speedily through interconnected data centers will underpin the next phase of the transformative journey that lies ahead.

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