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Size Matters: The Increasing Importance of Smaller “Edge” Data Centers
There’s little doubt that data drives just about everything we do. And there’s every indication that the world’s data will double between now and 2037, according to – uh – data from IDC’s Global DataSphere projection.
As a result, data centers are becoming popular commercial real estate investments. And within that sector is a subsector – edge data centers. According to a recent JLL article, edge data centers have smaller capacities, between 500 kilowatts to 2 megawatts (versus the typical 80 MW capacity of most hyperscale centers). Because of their size, they can move computing capability closer to users who might be located further away from the cloud.
“The main functionality of an edge center is not to preserve data, but to complete a task and return results as fast as possible,” said Colm Shorten, JLL’s Global Data Centre Business Development Manager. “They improve connectivity and help move packets of information across a wider net, at higher density and speed.”
The Edge Data Center market is anticipated to advance at a CAGR of 22.1% from 2023 to 2031, according to Transparency Market Research. At that time, it should reach $57.8 billion, the research company added.
And while less than 10% of business data is created and processed at the edge of these networks, information from Gartner reports that the figure could rise to 75% by 2025, meaning a greater need for distributed infrastructure.
“These assets are increasingly important to the architecture of computing networks, thanks to the continued adoption of IoT devices and now the rise of generative AI applications, and machine learning (ML),” said Tom Glover, JLL Head of EMEA Data Center Transactions.
Another benefit is that edge centers take up less land – and could offer a more sustainable alternative to the hyperscale centers. The latter are known for their environmental impact, given the energy needed to power then. The JLL article noted that smaller sites could support part of the solution in creating and maintaining more sustainable data infrastructure.
- ◦Development
