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Advances in Data Center Technologies for 2023
With greater computing power comes an unprecedented appetite for data.
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CIO Applications | Monday, February 27, 2023

Technology is advancing rapidly from artificial intelligence and machine learning to renewable energy and sustainable design. In recent years, these technologies have increased in various fields, including healthcare, education, transportation, and commerce, and data centers are no exception.
FREMONT, CA: With greater computing power comes an unprecedented appetite for data. The quantity of data worldwide increased by over 5,000 percent from 2010 to 2020, and usage is expected to continue growing.
Increasingly advanced technologies, such as edge computing and bare metal cloud, help data centers meet this staggering demand increase.
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Data Center Technology Trends for 2023
Data center technology is expected to evolve rather than revolutionize in the coming year. The following are some impactful data center trends.
Cloud Computing Is Here to Stay
Cloud computing facilitates using resources such as servers, storage, and applications through the internet without purchasing or managing actual gear and infrastructure.
The ongoing expansion of cloud computing is the trend that has the most impact on the data center business. Despite inflation and deteriorating socioeconomic conditions, Gartner forecasts a 20 percent increase in global spending on public cloud services by 2023.
Nonetheless, according to Flexera's 2022 report on the health of the cloud, enterprises are investing more effort into regulating consumption and reducing expenditures to curb rising cloud-based expenses. The utmost effort mentioned by firms was optimizing their current cloud usage, followed by moving more workloads to the cloud.
The Continued Growth of Hybrid Cloud
Hybrid cloud technology combines the positive aspects of both public and private clouds while limiting their respective drawbacks.
An enterprise can, for instance, retain sensitive data on a private cloud while enjoying the cost savings and flexibility of a public cloud for less critical applications. In addition, a hybrid cloud enables enterprises to transfer workloads between private and public clouds on an as-needed basis or leverage the knowledge and resources of different cloud providers—a significant benefit for organizations with complicated or specialized requirements. Moreover, it prevents vendor lock-in, resulting in a more flexible architecture.
Hybrid cloud is more prevalent than ever before. Eighty-two percent of IT leaders questioned, according to Cisco's 2022 Global Hybrid Cloud Trends Study, have utilized hybrid cloud to some extent. Moreover, 47 percent state they have deployed between two and three public infrastructures as a service cloud, while just 8 percent state they have used only one.
The Dominance of Hyperscale Data Centers
The hyperscaler is a large-scale data center designed to deploy many servers rapidly. Internet giants and companies that process vast amounts of data typically use them in much larger and more complex data centers.
A critical factor that separates these data centers from regular ones is the level of automation needed. Modular designs and prefabricated components are common in hyperscale data centers, allowing quick construction.
From 2021 to 2026, Amazon, Microsoft, Alphabet, Alibaba, and Facebook will dominate the hyperscale data center market, which, despite a broader downturn, is projected to grow by approximately 3.38 percent.
Edge computing and 5G networks synergize
The rollout of 5G will significantly impact the data center industry as it will introduce data-hungry technologies that were not previously viable, including virtual and augmented reality, self-driving cars, remote healthcare, precision farming, and digital distribution. These technologies are highly data-intensive and require specialized infrastructure and software.
Self-driving cars also require a lower latency to make split-second decisions and avoid accidents. As distance is the primary source of latency, more data will need to be processed closer to its source, resulting in the growth of regional and local data centers.
Increasingly, organizations will rely on edge computing instead of central data centers as distributed sources generate more data.
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