How to Choose the Right Data Center Services Provider in 2025?

In 2025, the growing demand for the data center provider industry will still be expanding at an incredible rate. The worldwide data center provider market is anticipated to grow at a 15% CAGR through 2027, based on developments that are presently being built and those that are planned. This is our baseline prediction, with a 20% CAGR through 2027 as an upside possibility. Despite its fast rise, the industry faces several possibilities and problems.

New technology is opening up possibilities for wealth generation and long-term growth. Other major issues facing the industry include electricity shortages and rising demand that is outpacing supply. This paper looks at the significant problems that the global data center industry is currently facing and makes forecasts for the coming year.

Before diving into choosing the right data center providers, first let’s look at the key highlights that are going to be there in 2025 related to artificial intelligence and liquid cooling.

  1. Artificial Intelligence: AI is finding more and more uses in almost every industry. Several billions of dollars have been invested in AI during the past few years.
  2. Liquid Cooling: Liquid cooling will be a practical solution and a chance to boost asset value for current facilities moving to higher-density workloads.

Key Highlights:

  • In 2025, artificial intelligence (AI) will still be gaining traction. The data center sector is at the start of a revolutionary period, propelled by AI’s unrelenting development. Over the past few years, billions of dollars have been invested in AI, which has increased demand for data center infrastructure.
  • SMR announcements will pick up speed in 2025, and the total gigawatts will probably double. As the need for energy grows, nuclear power is becoming the go-to option. The industry is investigating both conventional large-scale nuclear power and small modular reactors (SMRs) since conventional electricity systems find it difficult to keep up.
  • It will be necessary to switch to liquid cooling in order to support GPU developments. Liquid cooling infrastructure has rapidly taken over as the standard installation in new projects. Liquid cooling will be a practical alternative for current facilities moving to higher density workloads, providing owners and investors with an opportunity to improve their assets.
  •  In 2025, $170 billion in assets will need to be secured for development or long-term funding. Development finance will offer investors a strong chance to get exposure to the industry, even though investment transaction volumes are only expected to slightly expand in 2025 because of large bid-ask spreads and a dearth of accessible products.

The capacity of data center providers worldwide is expected to increase by 15% annually, but this will not be enough to satisfy the rising demand.
2023–2027 data center capacity (gigawatts)

As businesses increase their data usage and rely on data center services to support their expansion, choosing the best data center provider can be difficult. Businesses of all sizes can choose from a variety of data centers, so choosing the right one requires considerable thought and confidence.

7 steps You Need to Consider While Choosing a Data Center Provider

Selecting the best data center provider is essential to guaranteeing the scalability, security, and dependability of your IT infrastructure. Here are some important factors to think about before choosing your choice.

  • Location

When selecting a data center provider, location is crucial for a number of reasons. First, think about how easy it is for your staff to get to the site, particularly for maintenance or equipment upgrades. Location-related delays or inefficiencies can be expensive. Additionally, assess the region’s susceptibility to earthquakes, tornadoes, floods, and hurricanes. Although data center providers typically take these hazards into consideration, it is advisable to confirm the facility’s readiness.

Lastly, we’ll go into greater detail about the network and customer ecosystems, but first we’ll make sure the data center has enough power and numerous fiber channels for connectivity.

  • Power Cooling

Because outages are expensive, it is essential to guarantee continuous electricity and efficient cooling systems. Implementing a multi-path configuration for redundancy is the ideal course of action, as it allows for seamless system replacement in the event of a failure.

For client equipment to operate at its best, data center server cooling is essential. This could entail cutting-edge methods like cold-aisle containment, free air cooling, and deep lake water cooling, among others.

  • Security Measures

Your business depends on your data. When hosting it somewhere else, be sure the supplier adheres to SOC 2, SSAE 18, and HIPAA laws and employs excellent security measures. The building should have strong physical security, which includes alarms, monitoring, access controls, and several levels of protection. To identify and notify you of any possible emergencies, sophisticated monitoring systems must be installed.

  • Scalability & Flexibility

Choose a service that can adapt to your changing needs in order to fulfill your short-term and long-term goals. While some data center providers give pre-made systems, others provide more adaptable and configurable choices.

Check if more resources, such as power, space, and connectivity, are available. Don’t let a provider who isn’t scalable restrict the possibility for expansion of your organization.

  • Cost

Find out how much power, cooling, and network connectivity will cost each time you host equipment at the colocation data center. Additionally, note any one-time infrastructure setup costs. Make sure that network connectivity and server power are covered by these fees.

Furthermore, for a cost, certain data center providers in India may provide additional services like equipment installation or remote hand help. Take into account the data center’s dependability and service quality while assessing expenses.

  • SLA, uptime, compliance and certifications

Assessing a potential data center partner’s demonstrated track record and committed service standards is essential. Although 99.99% uptime SLAs are provided by many data centers, others may go above and beyond. 

Verifying a data center’s providers dependability, security, and regulatory compliance requires independent audits and certifications, particularly for the government, financial services, and healthcare industries.

  • Customer Support

More than just more room and faster speeds should be provided by data centers. A first-rate facility has committed, knowledgeable support staff on hand around-the-clock to answer inquiries and fix problems.

Conclusion:

Choosing the right data center provider is a crucial decision that can significantly affect the success and expansion of your company, regardless of whether you’re just starting your search or switching from another provider. By considering elements like location, data center security, scalability, flexibility, dependability, network connectivity, on-site assistance, customer service, and SLAs, you can make decisions that will satisfy the demands of your organization and its long-term objectives.

ESDS is one of the leading data center management organizations in India that provides services to assist and safeguard your IT infrastructure while you search for the finest data center provider. You can rely on us to support the digital success of your company because we prioritize security, dependability, and scalability.

Ready to find the perfect data center provider for your business? Contact ESDS Software Solution today to explore our secure, scalable, and reliable data center solutions

Making Data Center Smart: How Artificial Intelligence Helps?

artificial intelligence

As data centers become an enabler to a nation’s economy, employing artificial intelligence can yield higher benefits

Artificial Intelligence (AI) plays a pivotal role in capturing, processing, and analyzing data at a much faster rate than ever, today! It is also becoming more efficient and useful to incorporate data elements and managing data centers.

With data becoming a pre-requisite to sustain almost every business operation for insight and business results, data centers are on the crux of this digital transformation. These physical facilities that house the computers and equipment power the information needs of the modern economy. Data centers provide seamless data backup and recovery facilities while supporting cloud storage applications and transactions. Apart from boosting the economy, the data center ecosystem attracts many international tech companies for the nation. Moreover, the presence of data centers ensures an excellent investment climate and employment opportunities for the local community.

Despite their key role in bringing a digital revolution, they are not without problems. According to Gartner analyst Dave Cappuccio, 80% of enterprises will shut down their traditional data centers by 2025. The figures are fitting considering the host of problems faced by traditional data centers like lack of readiness to upgrade, infrastructure challenges, environmental issues, and more. And the remedy for this is leveraging artificial intelligence to enhance the data center functions and infrastructure.

As per a Forbes Insights report, in early 2020, artificial intelligence is poised to have a tremendous impact on data center management, productivity, and infrastructure. Meanwhile, its technologies continue to offer data centers potential solutions to improve operations over the long term. In return data centers enabled by accelerated computing capabilities of AI, would be able to process AI workloads more efficiently.

Data centers consume a lot of energy, so training an artificial intelligence network to improve power usage effectiveness (PUE) is a key goal. PUE is an essential metric to measure data center efficiency. In 2014 by deploying Deepmind AI in one of its facilities, Google was able to consistently achieve a 40% reduction in the amount of energy used for cooling, which equated to a 15% reduction in overall PUE overhead after accounting for electrical losses and other non-cooling inefficiencies. It also produced the lowest PUE the site had ever seen. Deepmind analyzes over 100 different variables within the data center to improve efficiency and reduce power consumption.

Data centers are also susceptible to various cyber threats. Cybercriminals are always finding new ways to obtain data from data centers or launch their next data breach attack. By learning normal network behavior and detecting cyber threats based on deviation from that behavior, artificial intelligence proves to be resourceful again!  Artificial algorithms can complement current Security Incidents and Event Management (SIEM) systems, by analyzing incidents and inputs from multiple systems, and devising an appropriate incident response system.

In a data center, IT devices are often deployed or removed from shelves that brings a lot of fragmented resources, like U space, which cannot be monitored or managed, and are easy to get wasted. By using intelligent hardware and IoT sensors, artificial intelligence allows effective data center infrastructure management that keeps a close eye on the data center and reduces repetitive work through automation. Here, data center managers can automate activities like temperature management, equipment status monitoring, floor security, fire hazards mitigation, ventilation, and cooling systems management. Coupled with predictive analytics, automation also helps in predictive maintenance at data centers.

Further, this AI-based predictive analysis can help data centers distribute workloads across the many servers in the firm. As a result, it will be easy to predict and manage data center loads more efficiently. It will also help in optimizing server storage systems, finding possible fault points in the system, improve processing times, and reducing risk factors much faster.

Recently, MIT researchers had developed an AI system that automatically learns how to schedule data-processing operations across thousands of servers. This system was observed to be about 20 to 30% faster, and twice as fast during high-traffic times in completing key data center tasks. The researchers assert that this artificial intelligence system could enable data centers to handle the same workload at higher speeds, using fewer resources.

Additionally, through deep learning (DL) applications, AI can predict failures and outages ahead of time. E.g.  HPE artificial intelligence predictive engine helps in identifying and resolving bottlenecks in the data center.  A survey of 200 companies highlighted that downtime results in losses surpassing US$26.5 billion, with the cost per minute of a network outage reaching approximately US$7,900. By monitoring server performance, network congestions, and disk utilization, AI can detect and predict data outages. Besides, it can implement mitigation strategies to help the data center recover from the data outage – thus adding to customer satisfaction and minimal losses during such outages.

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