The Market Is Closely Tied to Macroeconomic Conditions
Over the past 10 years, the data center market has demonstrated sustained demand-led growth. Complementary technologies (e.g., the Internet of Things (IoT), Artificial Intelligence (AI)/Machine Learning (ML), and blockchain) have created significant demand for compute and cloud resources. But like most markets, the data center market is facing significant pressure as a result of global issues:
A new European war has not only affected Russia and Ukraine, but it has created significant supply chain issues around the world. Commodity prices have risen, putting pressure on data center construction costs, while also driving equipment costs up. In addition, energy prices have exploded, as gas & oil supplies have been cut off from European countries. This not only increases data center operational costs, but also puts additional political pressure on the industry as a whole due to its large energy footprint. It is expected that countries will increasingly become “anti-construction,” with possible new legislation, including morato…
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