Global Data Center Locations – Turkey Has The Highest

Data Center Market Growth

Globally there are more than half a million Data Centers, which occupy

about 290 million square feet of space. Global Data Center traffic is

expected to triple from 2.6 zettabytes in 2012 to 7.7 zettabytes in 2017,

at a CAGR of 25 percent. IBM, Google, Microsoft, Yahoo, Samsung and

Amazon are key companies dominating the Data Center markets.

About 45 percent of Data Centers in the world are located in US,

followed by Western Europe (UK, Ireland, Switzerland, Germany,

France, The Netherlands, Italy and Poland) with 25 percent, and Canada

at 3 percent. Latin America (Brazil, Argentina and Chile), India and

Australia each have about 3 percent of this market. The graph below is

an overview of the global Data Center spread.

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Source: Talent Neuron Research and Analysis

Emerging locations such as Turkey, Brazil and Argentina are witnessing

rapid growth in Data Center facilities. Tax incentives as well as the

availability of energy and real estate at subsidized rates are driving the

growth of Data Center market. The market in Turkey is growing at a rate

of 55 percent, followed by Brazil at 45 percent and Argentina at 40

percent. Russia and China indicate growth of 30 percent each. India and

Germany are growing at a rate of 15 percent while US and Canada are

at 10 percent.

The graph below indicates the IT Infrastructure Talent across key global

Data Center Locations

Source: Talent Neuron Research and Analysis

APAC locations such as Hong Kong and Tokyo have a large IT

Infrastructure talent pool which makes them favorable for data center

operations. Hong Kong and Tokyo have an installed talent pool of 13,730

and 12,800 professionals respectively, with the ability to be employed in

Data Centers.

Emerging Data Center locations outside US: Few global cities outside

US have managed to become data center hot spots for multiple IT

companies due to reliable infrastructure, skilled workforce and business

friendly regulations.

Slough (UK): Due to its proximity to London, Slough is a key area for

several businesses making it a strategic location for Data Center

operations. The city is an ideal location for Data Centers with the

advantages of dual power supply, comprehensive fibre network

connectivity and high levels of security. As a result of these benefits,

Samsung opened its Data Center in Slough in 2012.

Luleå (Sweden): Luleå benefits from Sweden’s high redundant power

grid that uses renewable hydropower and significantly developed

infrastructure. Sweden has one of the lowest electricity prices in Europe

with Luleå further having the lowest electricity prices in Sweden. The

region has a large number of skilled talent in the Data Center space with

expertise in areas such as distance-spanning technology, long-term

digital preservation and lower energy consumption of web technologies.

Facebook opened a 30,000 square meter Data Center in the city in 2013.

Reykjavik (Iceland): Availability of low cost abundant renewable

geothermal and hydroelectric energy makes the country suitable for Data

Center operations. Energy costs in the country are one-third the energy

costs in London. Further, the pool of IT infrastructure talent has been

steadily growing in the region and the removal of VAT (Value Added Tax)

on IT infrastructure has made Iceland more attractive for Data Center

operations. Data Centers in Iceland also benefit from fresh air cooling

leading to cost savings.

Singapore: Tax incentives by the local government have decreased the

cost of setting up new Data Centers in Singapore. The Infocomm

Development Authority of Singapore (IDA) offers incentives to companies

covering between 30% and 50% of capital expenses for retrofitting their

Data Centers with new, energy-efficient equipment. The city also has

reliable power supply and skilled Data Center talent.