Cloud Demand Drives Data Center Market to New Records

data centre

According to a report released by real estate services firm CBRE Group Inc. U.S. businesses paid for a record-high 396.4 megawatts of power last year. This is a 33 percent increase compared to 2018. The main reason for this increase in power consumption is the rise in demand for cloud-based services. 

The predictions for this area are even more grandiose in scope. Some sources claim that the global cloud computing market size will grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 17.5% during the forecast period.

What is it all about? 

Cloud computing uses technology that allows a business to store its servers and data off-site in secure data centers, which can then be accessed by users through the internet.

Due to the pandemic that we are all dealing with, the number of people who work from home and access the data they need online has risen sharply. The sudden shutdowns of offices, schools, and enterprises have increased the demand for cloud solutions and services.

Even without the pandemic, the cloud as a service has been gaining popularity since it allows companies to improve customer experience, increase productivity, lower cost, and aid in revenue generation by allowing quicker time to market. 

Increased productivity 

When working with a cloud-based service, several people can work on the same document in real-time. Just this one small detail can save a great deal of time spent updating, filling, and printing documents while minimizing the chances of double work and wasted time and energy. 

Thanks to the advancements in technology, it has become possible to share information seamlessly and work on projects on the same page and transform the way things get done.

Improved security 

Data that is stored on a single computer or shared within a local network can quickly become corrupted or even stolen. Data centers that offer cloud computing services are a reliable solution to that problem. 

With cloud computing, you will always have a backup of your essential info ready, even if viruses or other malicious software finds its way to your local device. Furthermore, many data centers protect from computer viruses, spyware, and any other malware form. 

Their servers are also far more resilient and sturdier than any device a single individual might have, able to provide 24/7 uptime and protection and safety of your data. 


There are several ways of using a cloud computing solution that can save you money. 

First of all, the apparent fact is that you don’t have to invest in complicated network infrastructure and maintain it. Once you opt for using a data center’s services, you no longer have to worry if your equipment and data protection are up to date. 

Secondly, many software types offer special prices for the cloud-based variants of their product that can be obtained at a fraction of the regular price. 

Last but not least is the fact that cloud computing almost completely eliminates the need for maintaining, updating, distributing, and shredding paper copies. 

Greater flexibility

Like so many items listed before, flexibility has a dual meaning here. By relying on an outside organization to take care of all aspects of IT hosting and infrastructure, the business owners gain more time that they can devote to reaching business goals and satisfying customers. 

Another benefit of cloud-based computing is that it has the potential to offer more of its infrastructure and bandwidth to a growing enterprise, meaning your server can grow along with your business. 

An easier way to gain insight 

Many cloud-based storage solutions offer integrated cloud analytics. You can use that info to build customized reports to analyze information across the organization. From those insights, you can increase efficiencies and create action plans to meet organizational goals.

Constant quality 

 In a cloud-based system, all documents are stored in one place and a single format. With everyone accessing the same information, you can maintain data consistency, avoid human error, and have a clear record of any revisions or updates.

This reduces the risks of confusion and diluted data while ensuring the consistent quality of the output materials. Besides, Keeping track of various data is much easier if everyone is on the same page regarding formats and filetypes used. 

Automatic software updates

Anyone who ever had to sit at their desk just doing nothing and waiting for the firm’s IT specialists to finish updating software on their device can attest to how annoying and time-consuming it can be. 

Cloud-based applications automatically refresh and update themselves, instead of forcing an IT department to perform a manual organization-wide update. This option saves valuable IT staff time and money spent on outside IT consultation. 

Hosted email

Many data centers offer the option of having your own email servers. This is far more convenient than setting up an alternative email that would be only business-oriented on, say, Google or another free email provider. 

 For many firms, the move to hosted email has increased mailbox storage quotas and dramatically reduced the demands that email puts on IT departments' time.

Prices of cloud-based services are constantly dropping

As the computer hardware becomes increasingly cheaper and simultaneously cheaper, the cloud-based services follow. 

This leads to lower prices, investment in new features, and increased marketing expenditure. These three elements each attract new customers, further improving economies of scale. The same circle then repeats.


All the advantages that cloud-based data storage has over the traditional networking and filing methods listed above make it pretty clear why the demand for cloud offerings from data centers is on the rise and why it will continue to grow. 

Cloud computing offers you data safety and limitless computing power. It improves security and productivity while offering greater flexibility and more affordable software with no worries about updates and things like viruses and hardware maintenance. 

All things considered, the future looks bright for the data centers that offer cloud computing services.

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