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What is the Data Centre Industry's Outlook for 2022?

With a greater emphasis on digital transformation strategies to deliver new revenue streams and provide services at the edge, the demand for reliable and resilient data storage and digital infrastructure is more significant than ever.
Fremont, CA: There is no doubt that everyone involved in the data center business is confronted with a unique set of challenges and opportunities. The rapid increase in data usage over the last 18 months, which was initially viewed as a "blip" as individuals and businesses hastened their acceptance and adoption of digital services, is now expected to continue unabated. Indeed, according to IDC, the amount of digital data created over the next five years will be more than twice the amount of data made since the advent of digital storage.
It's no surprise that interest in the data center industry as a profitable alternative investment option to more traditional real estate assets is rising. Moreover, this sector provides investors with the opportunity to diversify their portfolios in significant cities around the world while also considering investments outside of the core data center markets of Frankfurt, London, Amsterdam, Paris, and Dublin (FLAPD), which currently have just under 3.5 gigatonnes of live power.
Competition for land available in suitable locations is already growing and fierce, and it will continue to influence the price of potential data center development sites. But, unfortunately, there will be no getting around the fact that a lack of power in established metros will be a genuine problem for businesses to consider in 2022.
Outside of the DC hubs, According to byte data, the sector is already seeing developments outside of Frankfurt due to power constraints for data center operators in the city, with one hyper-scale acquiring three sites in Hanau, Erlensee, and Dietzenbach in 2020. In Spain, AWS chose to develop in Zaragoza instead of other cloud providers, which continued to focus on Madrid. As a result, AWS is on track to open its first hyperscale campuses in the region this year.
Much of the growth in the Nordics has occurred in Sweden and Denmark, both of which have become popular locations for enterprise hyper-scale deployments. After Dublin and London, Stockholm is on track to become the market with the third-largest capacity scheduled to go live in 2022. Even though most large facilities are located outside of Copenhagen on the Jutland peninsula, Denmark has half of the total self-built public cloud deployments across the Nordics.
According to our research, the Nordic region is already expected to support 470MW from major hyperscalers next year. Moreover, the Nordic metros' current live capacity of 549MW puts it ahead of Frankfurt and Paris - is also likely to attract attention.
Along with space and power, the most pressing issue for 2022 in EMEA could be skills and experience gaps, which could jeopardize the data center market's medium-to-long-term future. In the current climate, the trend for some to embrace 'The Great Resignation' may not be at the top of the data center industry's agenda. However, if a large and skilled workforce of network, mechanical, and electrical engineers are not recruited to support and service the sector, the digital infrastructure required to deliver and maintain our digital lives will be severely strained.
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