Martin Antunez, Director, Sales Engineering

Emerging markets represent the next frontier of hyperscale data centre operators and growth. As the global demand for data and digital services increases exponentially, the infrastructure to support these services must follow suit. Hyperscale cloud computing data centres have become the backbone of this digital infrastructure, supporting everything from hyperscale cloud computing to social media, online retail, and streaming services.

With the emergence of cloud providers—and their large global footprints—enterprises have abandoned traditional dedicated data centres. The need for data centres has not reduced, it has entirely changed. Hybrid cloud, colocation and hyperscale data centre solutions are now at the forefront of digital infrastructure.

This shift is all about utility. While the maintenance of a dedicated data centre requires extensive specialised knowledge and equipment as well as resources, third party providers offer convenient pay-as-you-go, platform-neutral cloud computing as a service that can scale up or down and be spread across geographies.

Data demands are rising dramatically. The utility of that data is intertwined with the business objectives of those that create and use it. And hyperscale data centres are becoming even more critical.

Data Drivers in High Gear

While this utilisation of third party cloud services was initially implemented chiefly by large multinational and digital-facing operations in particular, it’s now commonplace for organisations of all types and sizes. Some of the key drivers of cloud services include emerging data-driven technologies like AI, IoT, virtual and augmented reality, and autonomous vehicles.

With cloud services being employed for increasingly diverse purposes, it is important that organisations have a solution that is flexible enough to accommodate a wide range of needs. That’s why many businesses today deploy some form of hybrid cloud solution. Utilising both private and public clouds, hybrid solutions enable businesses to grow their workloads in the cloud as their business needs grow while ensuring that their most sensitive data and applications can remain on private servers.

The Unique Challenges of Building in Emerging Markets

Building hyperscale cloud computing data centres in emerging markets is not without its challenges. From political and economic instability to underdeveloped infrastructure, the hurdles are significant. However, the potential rewards for hyperscale business operators are equally substantial.

For hyperscale data centre operators willing to take the plunge, emerging markets offer a wealth of opportunities. The growing middle class in many of these regions is driving demand for hyperscale cloud services, which in turn requires robust hyperscale computing data centre infrastructure.

Why Hyperscale?

Hyperscale data centres are the logical response to the explosion in demand for cloud services and hybrid solutions in particular. These are large facilities: roughly the size of a football field on average, with approximately 20 MWs of power each. There are expected to be over 500 hyperscale data centre facilities worldwide by 2020. At that time, these facilities are expected to house 68% of all data centre processing power and 57% of the data stored in all data centres worldwide.

With the reliance on hyperscale data centre facilities on the rise, data centre providers like Digital Realty are investing in new projects at a rapid pace. But what constitutes a good site for a hyperscale facility? There are a few key considerations that providers look for. A large plot of land and ready access to fiber are crucial, as is the ability to support our customers’ as well as our own sustainability goals. As of September 2018, 65% of our top 20 customers have renewable energy goals with 45% seeking 100% renewable energy usage. Learn about Digital Realty’s industry-leading sustainability initiatives.

Hyperscale cloud computing data centres are playing an increasingly important role in emerging markets. As more companies look to expand their digital footprint, the demand for large-scale, efficient hyperscale computing facilities is on the rise. Hyperscale cloud facilities offer the scalability and efficiency that hyperscale business operators need to grow in these fast-developing regions.

Location, Location, Emerging Market Location.

That is, global locations. While the need for hyperscale data centres is greatest in established metros like the U.S. and Europe, the rest of the world is catching up quickly. Emerging markets offer unique opportunities and challenges. For instance, the Latin American data centre market has been growing over the past couple of years.

So, what considerations are important when it comes to choosing a location for a new data centre? Choosing a location begins with the relationship between the hyperscale provider and the local regulations and business environment. Motivation from the local resources is critical to moving projects forward, as is access to affordably priced renewable energy.

Building in Emerging Markets

Some key considerations for potential hyperscale data centre deployments in emerging markets:

The costs of available fiber networks
Security demands
The business climate and growth potential
Labor resources for all needed role types

From a provider’s perspective, it will be interesting to see how hyperscalers approach emerging markets and vice versa.

Building Hyperscale Data Centers in Emerging Markets