Quick Answer: How Profitable Are Data Centers?

Is Equinix a REIT?

The real estate investment trust (REIT) sector has been smashed during the COVID-19 pandemic.

Data REITs are one of the few places to look for growth in the REIT world, and that’s why Equinix (NASDAQ:EQIX), a top player in the field, is worth a look..

What are the biggest expenses in running a data center?

The total cost includes facilities, server technology and related equipment — hardware and software, networking and bandwidth costs, as well as hiring the engineers and technical staff to perform the IT operations role.

What is the future of data centers?

Future data centers will inevitably require adequate processing power—locally, in the cloud and at the edge—to effectively manage new challenges around bandwidth, security and tools like AI, advanced analytics, 5G, edge computing and more.

Which companies have their own data centers?

Top 11 BEST Data Center Companies | Datacenter Services In 2020Comparison Of The Best Data Center Service Providers.#1) Equinix.#2) Digital Realty.#3) China Telecom.#4) NTT Communications.#5) Telehouse/KDDI.#6) Coresite.#7) Verizon.More items…•

Who needs data centers?

Any entity that generates or uses data has the need for data centers on some level, including government agencies, educational bodies, telecommunications companies, financial institutions, retailers of all sizes, and the purveyors of online information and social networking services such as Google and Facebook.

What company owns the most data centers?

These are the six largest providers:CenturyLink. # of Data Centers: 350+ … Equinix. # of Data Centers: 200+ … NTT Communications. # of Data Centers: 140+ … Data Foundry. # of Data Centers: 6. … BT. # of Data Centers: 48. … Cyxtera. # of Data Centers: 50+

What companies build data centers?

TOP 35 DATA CENTER CONSTRUCTION FIRMSRANKCOMPANY2016 DATA CENTER REVENUE1Turner Construction Co.$1,041,004,3322Holder Construction$883,000,0003DPR Construction$684,535,00035 more rows

How much does a Google data center cost?

How Much Do Google Data Centers Cost to Build? Google’s newest data center at The Dalles in Oregon, a 164,000-square foot building that opened in 2016, brought its total investment in that site to $1.2 billion. The overall size totals 352,000 square feet of data center divided among three buildings.

How long does it take to build a data center?

Building a new data center used to take 18 to 24 months. New design and construction strategies have helped reduce the build times for new data centers.

What is a data center REIT?

Data center REITs own and manage facilities that customers use to safely store data. Data center REITs offer a range of products and services to help keep servers and data safe, including providing uninterruptable power supplies, air-cooled chillers and physical security. Overview. 8/31/2020, FTSE.

Why are data centers growing?

The data center infrastructure market is also growing due to an increase in demand for servers, computers, networking equipment like routers or switches, security components like a firewall or biometric security sensor, storage capacity, and data center management software and applications.

How much money do data centers make?

While being built, a typical data center employs 1,688 local workers, provides $77.7 million in wages for those workers, produces $243.5 million in output along the local economy’s supply chain, and generates $9.9 million in revenue for state and local governments.

Are data centers becoming obsolete?

In a blog post titled ‘The Data Center is Dead’, Gartner Research VP Dave Cappuccio said the analyst firm expects 80 percent of enterprises will have shut down their traditional data centers by 2025 — up from just 10 percent today.

Are data centers a good investment?

“I believe that investment in data-center REITs is a good alternative to technology investments as it can be seen as a technology play, with a real estate component,” Petrova says. “It is also a safer play than investing in technology stocks. … Long-term trends for data services are good, Baillieul says.

Who owns the most data in the world?

Top 10 Data Center Companies in the World 2018Google. Google (Alphabet) has been a pioneer in data center infrastructure market and has set the pace for the landscape with the scale, accuracy, and efficiency of its global network. … Digital Realty Trust. … Microsoft. … China Telecom. … IBM.

How much electricity do data centers use?

Data Center Energy Consumption Statistics In 2017, US based data centers alone used up more than 90 billion kilowatt-hours of electricity.

What is the largest data center in the world?

The Citadel CampusWhat is the largest data center in the world? The Citadel Campus is the largest data center in the world at about 7.2 million square feet of space.

According to research by Intricately’s Global Sensor Network, three trends are having a significant impact on the global data center industry today: Trend #1: The Data Center Business Model Is Transforming. Trend #2: Cloud Growth Is Not Slowing Down. Trend #3: Hybrid Cloud Adoption Is Limited.