Global edge data centre market to hit $317 bil by 2026: JLL

Real estate consulting firm JLL predicts that the market value for edge IT infrastructure and data centres will reach $317 billion by 2026, according to an August 12 press release. This is more than double the $153 billion the market was valued at in 2020. Edge data centres are facilities situated closer to where the data is generated or used. This makes them better able to process and analyse data in real-time, facilitating faster decision-making and more efficient operations. JLL’s forecast comes as more technologies, such as generative artificial intelligence (AI) and Internet of Things (IoT), require the faster data transfer and higher computation speed that edge data centres can provide. Read also: Hwa Hong Corp sells OneTen Paya Lebar data centre for $140 mil Advertisement Advertisement The growth of edge IT infrastructure – which covers an ecosystem including device vendors, chip manufacturers, telco providers, hyperscalers, data centre operators and cloud service providers – is expected to mirror the growth of IoT devices. JLL projects the latter to expand at a compound annual growth rate of 9.8% over the next five years, underpinned by industries including mining, energy, public services, retail and logistics. In addition, global consumer and commercial demand for products and services that have low latency, faster computing speeds, and generative AI technology will spur the need for edge IT infrastructure. An example of this is the video game industry, where innovations such as cloud gaming have compelled the need for edge computing that can optimise gameplay without the need for hardware upgrades. Edge IT infrastructure also plays a critical role in expanding internet penetration rates. JLL views significant opportunities are present in regions like Asia Pacific and Middle East North Africa, where the gulf in internet and mobile penetration rates between urban and rural areas remain high. Without edge data centres the benefits of technology like IoT and generative AI will not transition to mainstream acceptance, says Jonathan Kinsey, EMEA lead and global chair of data centre solutions at JLL. He adds: “By bringing the computing infrastructure closer to the data source and user, edge IT infrastructure will become an essential component in the international economy.”