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Data Centers: They’re Shrinking in Numbers But Bulking in Size

By Dick Weisinger

The total number of data centers globally is decreasing.  IDC says that the total number hit a peak in 2017 and expected to slowly decline.  As businesses move their data to the cloud there is less of a need of small on-premise facilities.

But as small businesses are shutting down their data centers, cloud vendors are seriously ramping up.  IDC says that the global data center floor space rose from 1.58 billion square feet to 1.94 billion square feet this year.

A report by Statista found an incredible spike in data center spending in 2017.  Spending was $7.7 billion in 2016, but jumped to more than $20 billion in 2017.  Huge cloud data center investments are being made by Microsoft, Google and Amazon.  In the first three months of 2018, more than $4 billion has already been invested. Other announcements include Oracle saying that they intend to open 12 new data centers around the world.

Pat Lynch, director at CBRE Data Center Solutions, said that “you’ve got a major transition happening with the ownership of data center assets. Three to five years ago, the vast majority of the data center space utilized around the world was occupied by the company that owned or leased that space.

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