Data Center Hosting & Storage Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

When purchasing a certain set of goods or subscribing to services, every organization and its procurement staff look forward to obtaining the best bargain. In order to determine the most effective combination that may be able to assist the procurement team in obtaining the best rate, rate benchmarking compares the price and costs of multiple sets of products and services.

When analyzing the rate benchmarking of the data center hosting & storage services category, the geographic location, the quality of the service, nature of requirements and workforce cost are crucial factors. North American inventories are growing, with a supply of 2,132 MW (2.1 GW) increasing by 19.5% between Q1 2022 and Q1 2023. Construction costs have increased, the vacancy rate is at a ten-year low and available MW dropped from 46.6 MW to 38.4 MW. Leasing activity remained resilient despite rising interest rates and unstable economic conditions, driven by robust demand from technology, financial services, healthcare, and telecommunications sectors. North America's pricing trend increased in Q1 2023 due to supply constraints, including power availability, expensive land, labor costs and supply delays. Nuclear power, which supplies 34% of electricity, offers potential solutions. Investment in nuclear energy could potentially alleviate future power availability issues in five to 10 years.

The number of data centers in the Asia-Pacific region is quickly growing, with each of Tokyo, Singapore, and Sydney having more than half a GW of electrical capacity. Inventory in Sydney is up 30% from last year. Operators have trouble getting power, but vacancies have decreased in most important markets. Less than 4 MW of space is available for lease in Singapore, and vacancies have decreased by 1.5% to 2% in Tokyo and Hong Kong during the past year. Asia-Pacific leasing activity remains resilient despite macroeconomic headwinds and global technology sector rationalization. Sydney leads in net absorption with over 99 MW, while Tokyo has 43 MW. Singapore and Hong Kong have muted activity levels, while emerging markets like Mumbai and Seoul show growth. Colocation rental rates remain strong, with Singapore being one of the most expensive globally at over USD300 per kW and Tokyo at around USD200 per kW.

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The cost of hiring a data center technician is one of the major overhead costs. They set up and look after network hardware and data servers. They are responsible for keeping a server environment under control, checking daily server performance, and debugging network and server issues. The average salary of data center is around USD24.71.

According to our research, big service providing companies are paying above-average salaries to a data center technician at their firm. For instance, a data technician at NTT receives an average of USD39.63 per hour. It is 33% and 26% more than what Amazon and Google are paying. At Equinix the salary is 22% less than average. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it difficult for businesses to keep up with all the most recent changes in their supplier landscape. Businesses can concentrate on their core services by outsourcing the tasks involved in intelligence collection. Currently, organizations can benefit from using our newsletter service to be informed about the newest advancements and technologies, which will help to prevent supply chain disruptions. We have identified the following developments within the data center hosting & storage services category over the last two years:

In July 2023, Digital Realty introduced its first data center NVIDIA DGX H100, a multi-node, DGX-integrated, AI training as a service solution that is tailored to the particular needs of enterprise AI. It offers its consumers access to a sizable, connected community of networks, data centers, cloud services, and partners as well as world-class services, expertise, and infrastructure that are AI ready.

In June 2023, A renowned provider of data center infrastructure and services, NTT Ltd, has unveiled the opening of its newest campus for hyperscale data centers in Chennai, India, as well as the arrival of its MIST subsea cable system. The 12-fiber pair MIST cable system, with a capacity of more than 200 TBPS, is the first cable to land in India.

In December 2022, the Joint Warfighting Cloud Capability (JWCC) contract between Amazon Web Services (AWS) and the U.S. Department of Defense (DoD) includes the availability of AWS Modular Data Centre. The DoD depends on data-intensive, low-latency modern military apps to support crucial field coordination and communications.

In December 2022, Microsoft and LSEG enter in a 10-year strategic relationship to develop solutions for cloud infrastructure and next-generation data and analytics. Microsoft will invest in LSEG through the purchase of shares, engineer LSEG's data infrastructure, and create user-friendly next-generation products for productivity, data and analytics, and modelling using Microsoft Azure, AI, and Teams.

In October 2021, big tech Google unveiled Google Distributed Cloud- for data centers, in the cloud and at the edge. The collection of services, Google Distributed Cloud includes both hardware and software to expand infrastructure. It is accessible by Anthos and is perfect for local data processing, edge computing, modernizing on-premises systems, and satisfying strict data security, privacy, and sovereignty requirements.