Growth Opportunities in the Data Center Services Industry, 2024

The AI Megatrend Drives Growth Opportunities for Data Center Services and Drives Industry Transformation

Artificial intelligence (AI) adoption is increasing rapidly across industry segments and functional use cases, significantly impacting the way businesses create and deliver value. Generative AI has accelerated the awareness of the transformative impact of AI and the potential of leveraging the technology to create business value. As AI adoption continues, workloads also demand significantly unique digital infrastructure to support business outcomes.

Data center service providers have been witnessing intense competition in the global and regional colocation landscape. While the AI revolution is creating unique challenges for legacy infrastructure and data center builds, it is also opening up new revenue growth avenues and opportunities to create greater customer value and drive strategic differentiation. Colocation service providers must not only provide adequate space and power but also design facilities aligned with growth strategies and design technologies. Accelerating AI advancements will drive innovation in the data center industry, and service providers must reinvent existing facilities and planned digital infrastructure. Flexible and customized infrastructure that supports AI architectures for effective model training and inferencing will be essential in the changing technological landscape. This study discusses the global state of AI adoption and its impact on the data center colocation industry.