- November 1, 2016: Vol. 10, Number 10

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Cool it: Data centres and technology are both on a high-growth runway

by Chua Chor Hoon and Tan Yali

The growth story of data centres remains intact; if anything, it has got stronger. The global co-location market continues to experience fast growth, with revenue projected to grow by 25.8 percent per year (CAGR) from 2015 to 2017, according to 451 Research. Some investors have, however, expressed concern over disruptive technologies. As with all technologies, disruptors are constantly emerging that could affect data centre demand and supply. On the supply side, technological innovation strives to increase operational efficiency and the inflection point occurs when the rate of miniaturisation outpaces data generation, leading to reduced demand for physical data centre space. On the demand side, the global data explosion spurred by digital disruption is still at the early part of its exponential curve, with the Internet of Things (IoT) and big data forming the next wave of the digital revolution and new technologies such as Virtual Reality (VR) and Augmented Reality (AR) being develo

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