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Edge Data Center Market Estimated to Grow by $45.1 Billion from 2025-2029

Jan. 9, 2025
Growth in market is due to increased demand for video streaming and AI in data centers.

According to Technavio, the global edge data center market size is estimated to grow by USD 45.1 billion from 2025-2029. The growth is driven by increased demand for video streaming services, with a trend towards implementation of artificial intelligence (AI) in data centers. However, monitoring edge data center equipment across multiple locations poses a challenge.

Edge data centers are gaining favor in the digital world due to increased demand for real-time data analysis, low latency, and improved application performance. Driving this trend are AI, big data, cloud, streaming services, and 5G. Edge data centers enable businesses to process data closer to the source, reducing network traffic and improving the streaming experience for customers. E-commerce platforms benefit from edge data centers for data processing and industrial automation.

By computing server, power system, and cooling system performance, AI enables faster decision-making and efficiency. Service providers utilize AI in data center automation software to reduce human resources and optimize energy use.

The challenge in managing edge data centers involves overseeing unique power and cooling systems at multiple locations. Accurately maintaining an inventory of assets across these sites involves real-time monitoring of cabinet equipment, including servers, networking devices, power distribution units (PDUs), and patch panels. To manage this, end-users need a centralized dashboard displaying real-time power and environmental status of their edge data centers. This information permits early detection of possible issues such as hot spot formation, power capacity limitations, and redundancy loss. However, companies must employ Network Operations Center (NOC) technicians and experts in order to expertly manage IT equipment from the core to the edge data center.

Source: PR Newswire