Data Center IP Traffic Estimated to Reach 20.6 Zettabytes by the End of 2021
One result of the pandemic was the acceleration of digital transformation across almost every industry. It is estimated that data center IP traffic will reach 20.6 zettabytes (ZB) by the end of 2021, an increase of nearly 7 ZB since 2016. Much of the growth in the data processing and hosting sector will be driven by demand for colocation services and hyperscale cloud service providers. Hyperscale providers are expected to have deployed 2.1 million new IT racks between 2020 and 2025, according to 451 Research. The expected deployments translate to approximately $62 billion in capital spending on data center infrastructure.
Demand for data storage is projected to continue to rise due to the increasing use of data generating IoT products like remote health monitoring solutions, packaging and shipping trackers, and streaming devices. The use of these IoT products is increasing due to greater reliance on telecommuting, telehealth, and telelearning. Data processing and hosting services are expected to benefit from the increase in telecommuting for some time as COVID-19 vaccine rollouts may not immediately end the need for social distancing. There is also expected to be significant growth in demand from healthcare facilities that require IT infrastructure that is not available to them on premises.
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