Global Edge Data Centre Market Hit 317 Bil 2026 Jll
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In a recent press release, real estate consulting firm JLL has made a bold prediction that the market value for edge IT infrastructure and data centers will reach a whopping $317 billion by 2026. This projection is more than double the current market value of $153 billion, as reported in 2020.
The concept of edge data centers involves the positioning of facilities closer to the locations where data is generated or used. This enables faster processing and analysis of data, leading to more efficient decision-making and operations.
According to JLL’s forecast, the demand for edge data centers is increasing due to the rise of new technologies such as generative artificial intelligence (AI) and Internet of Things (IoT). These advancements require faster data transfer and higher computation speeds, which can be provided by edge data centers.
The growth of edge IT infrastructure encompasses a broad spectrum of industries, including device vendors, chip manufacturers, telecom providers, hyperscalers, data center operators, and cloud service providers. This growth is expected to mirror the expansion of IoT devices, which is projected to grow at a compound annual growth rate of 9.8% over the next five years, driven by industries such as mining, energy, public services, retail, and logistics.
Moreover, the global demand for products and services that require low latency, faster computing speeds, and generative AI technology is another driving force behind the need for edge IT infrastructure. A prime example of this is the video game industry, where innovations like cloud gaming have created a demand for edge computing that can optimize gameplay without the need for hardware upgrades.
Furthermore, edge IT infrastructure plays a crucial role in expanding internet penetration rates. JLL highlights opportunities in regions like Asia Pacific and the Middle East North Africa, where there is a significant gap in internet and mobile penetration rates between urban and rural areas.
JLL’s EMEA lead and global chair of data center solutions, Jonathan Kinsey, emphasizes the importance of edge data centers in enabling the widespread adoption of technologies like IoT and generative AI. He believes that by bringing the computing infrastructure closer to the data source and user, edge IT infrastructure will become an indispensable component of the global economy.