Global Edge Data Centre Market Hit 317 Bil 2026 Jll
According to a press release issued by global real estate consulting firm JLL on August 12, the market value for edge IT infrastructure and data centers is projected to reach $317 billion by 2026. This represents a significant increase from the market value of $153 billion in 2020.
Edge data centers are facilities that are strategically located near the source or destination of data. This allows for faster processing and analysis of data, enabling quicker decision-making and more efficient operations.
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The forecast by JLL comes at a time when emerging technologies such as generative artificial intelligence (AI) and Internet of Things (IoT) require high-speed data transfer and computation, which can be provided by edge data centers.
In addition to this, the growth of edge IT infrastructure – which encompasses a range of stakeholders including device manufacturers, chip makers, telecommunication providers, hyperscalers, data center operators, and cloud service providers – is expected to mirror the growth of IoT devices. JLL anticipates a compound annual growth rate of 9.8% for IoT over the next five years, driven by industries such as mining, energy, public services, retail, and logistics.
The demand for low-latency products and services, faster computing speeds, and generative AI technology is also expected to fuel the growth of edge IT infrastructure globally. This is evident in industries like the video game sector, where advancements such as cloud gaming have created a need for edge computing that can enhance gameplay without hardware upgrades.
Additionally, edge IT infrastructure plays a crucial role in expanding internet penetration rates. JLL sees significant potential in regions like Asia Pacific and the Middle East North Africa, where there is a considerable disparity in internet and mobile penetration rates between urban and rural areas.
Jonathan Kinsey, EMEA lead and global chair of data center solutions at JLL, believes that without edge data centers, the benefits of technologies like IoT and generative AI will not be widely embraced. He adds that by bringing the computing infrastructure closer to the source of data and the end-user, edge IT infrastructure will become an essential component in the global economy.