A study by JLL predicts that a surge in data-dependent technologies, including the Internet of Things (IoT) and generative artificial intelligence (Gen AI), will require substantial IT infrastructure support provided by edge data centres. The study predicts edge IT infrastructure and data centres will become a $317 billion market globally by 2026, growing 107% from 2020.
Edge data centre
JLL posits that the emergence of several technology-based megatrends, the need for faster data transfer and high computation, and policies and regulations will drive the growth of edge computing. With increasing demand to process and analyse data in real time, JLL predicts that organisations will rely on edge data centres for faster decision-making and enhanced operational efficiency.
JLL also projects that edge IT infrastructure focused on data centres will expand at a compound annual growth rate (CAGR) of 9.8% over the next five years, primarily driven by the requirement for low latency and high bandwidth (41%) and data security and privacy (38.3%).
Growth potential in APAC
Rising internet and mobile penetration among the rural population in Asia Pacific (APAC) and the Middle East North Africa (MENA) regions allows them to support the edge data centre market further.
Jonathan Kinsey, EMEA lead and global chair of Data Centre Solutions at JLL, said, “Edge data centres will be essential to ensure seamless business operations in the future economy while improving security measures and protecting against potential disruptions. By lowering latency and bringing the computing infrastructure closer to the data source and user, edge IT infrastructure will become an essential component in the international economy.”
