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Edge Computing Trends for Data Centers

For many companies, it’s common wisdom to run IT operations through a colocation data center and allow that facility to handle all of the complex, expensive, and critical operations that keep services up and running rather than to shoulder the burden and expense of operating on-site data centers. 

Often, data centers are located in proximity to large, populous areas so they can handle computing and data storage needs for customers in those regions or across the whole country. They’re placed near populated areas (i.e., where demand is highest) because speeds increase and costs decrease the closer a data center is to the end user. Having data centers in big cities allows nearby users an optimal digital experience. Large companies may have a handful of data centers scattered evenly across the country, each of which service its nearby states.

However, for some kinds of applications and services, these centralized setups are not optimal. For example, self-driving cars, 5G networks (that need to cover much more space, spread out over miles, and even away from the concentrated populations), and IoT devices demand high-speed, low-latency data transfers which may take too long if the demand isn’t located very close to their regional data center. These and similar applications often require smaller, less-centralized data center locations distributed wherever users are—even if those users aren’t in a large metropolitan area. 

This strategy, known as edge computing, is a growing trend because of the increasing demand for low-latency interactions. If you’re part of a data center team, here’s what you need to know about the direction edge computing data centers are heading. 

Small footprints and unprecedented portability

It used to be that edge data centers were essentially the same as regular data centers, only smaller. Now, however, technology has advanced enough—and hardware is small enough—that edge facilities can be as small as a utility box

This provides better data center distribution in highly populated areas as well as extending reach to more remote regions. It also makes portable edge computing facilities possible. Imagine the convenience of having multiple edge data centers in vehicles that can travel to wherever demand is highest. 

Achieving more with less

Edge computing challenges are complex and ever-evolving. To properly support 5G and other edge-critical operations, service coverage must be steady, reliable, high-speed, and vast. This means data centers must pack more high-density equipment into smaller places, with increased constraints on power usage and cooling, and then position these tiny data centers strategically where they are needed most. 

A further complexity is that these small portable data centers must run relatively autonomously, with less need for maintenance, upkeep, and hardware replacement than traditional data centers. Operating multiple different facilities in numerous locations with varying levels of access makes providing regular updates and hardware upgrades a challenge. Scalability may also be more difficult over the long term. 

This will require data centers to be flexible, adaptive, and able to pivot quickly.

Better benefits for users 

Traditional, centralized data center operations often pay high prices to rent space to extend their reach by hosting additional servers remotely. In the edge data center model, however, servers are no longer “remote.” In fact, they’re nearby by design. This has implications beyond reducing the costs incurred over longer distances. 

First, keeping data centers small and nearby the demand (at the “edge”) means less data passes through public networks on its much shorter journey from the data center to the end user. 

Second, companies using colocation edge facilities won’t be sharing as much tenant space with other clients. It’s almost always easier for smaller operations to stay nimble and customizable than it is for large data centers to accommodate specific requests. So the smaller nature of an edge data center means clients can more easily customize it to their specific needs. These tailored solutions may result in higher efficiency and better client satisfaction. 

An exploding market 

By 2030, the market for edge data centers is predicted to reach over $64 billion. This assumes growth continues at a rate of 25.3 percent annually. As of 2022, this sounds conservative, given the increased adoption of services that require edge computing for optimal functionality. 

When you consider how many people use video streaming services and play online games, it’s easy to see how improved latency and a more stable network would be attractive for end users. Think as well about the growth of the Internet of Things (IoT) in businesses and residential homes everywhere. Many IoT applications require edge computing support to operate quickly enough to be valuable to their users. 

The expansion of 5G networks across the country will continue, which means people in more rural and remote areas will soon need access to high-speed network support that was once reserved only for users in more populated areas. 

The adoption of edge computing in industries such as healthcare, retail, and federal and local governments further increases the demand for edge data centers. 

Emerging specialist markets

Clients typically fall into one or several categories, opening the door for traditional data centers to take advantage of niche growing segments within the broader edge data center market. 

Location

The needs of customers in specific geographical areas create unique demands. While the Americas still lead the world in terms of edge computing, Asia, for example—and the Pacific region in particular—is predicted to experience the largest growth of edge data centers in the near future. 

Industry

The industries that can benefit from edge computing for different applications are growing. There are numerous areas in which edge data centers could be a better way forward: healthcare, government, retail, banking and finance, insurance, manufacturing, shipping and logistics, energy, education, IT, media, and more. 

These are just a handful of examples; but the possibilities are endless. 

Rozmiar

Huge enterprises have different needs than smaller companies and individuals. Large manufacturing companies often use vast networks of IoT sensors to monitor the health of their equipment. While the sheer number of IoT devices, the amount of data being transferred, and the near-zero latency requirements would put huge strains on the traditional data center model, this is an area where edge computing could shine. 

Additionally, many enterprises prefer to send their computing needs to the edge rather than to the cloud to save on costs. They require far more computing power than smaller businesses, which makes the difference in price—and the load on the edge facilities—noticeable. This means there will be plenty of opportunities to build new edge computing data centers until the supply catches up with the demand. 

Depending on the customer’s requirements, an edge data center’s infrastructure and operations could be tailored to individual enterprises. This will increase efficiency and customer satisfaction at the same time. 

Solutions to common problems

Edge computing is currently facing some challenges. Security, in particular, poses a problem for some edge facilities. While data security is often more secure, because processes are handled locally and not transferred over multiple networks across longer distances, physical security is harder to manage. It’s more difficult for data centers to provide data backups, access control, and other protections to multiple smaller locations than to one large central location. Additionally, edge data centers are often unmanned. If something goes wrong, they may have to wait for a skilled tech to reach the location and deal with the issue. 

Data centers with solutions to those challenges will be in high demand. Figuring out how to provide uninterruptible power supplies, automatic detection of fires and other faults, remote 24/7 monitoring, or powerful cooling in a tiny, portable package will give edge data centers a competitive edge. 

Specialized services

Similarly, it’s difficult to translate some services from a full-size data center into a smaller edge computing facility. Maintenance, training, and installation should be offered because clients won’t want to lose these even as they gain the convenience, speed, and other benefits of moving their processes to the edge. 

It can also be difficult to stock every single edge data center with a suitable data center lift, or even to maneuver data center lifts inside tiny edge facilities. When planning construction on edge data centers, it will be necessary to plan for the logistics of installations and repairs with these limitations in mind. 

More edge-dependent technologies

The demand for edge data centers is expanding because of the growth of technologies such as 5G, autonomous vehicles, live streaming, and IoT. These technologies will probably grow even more quickly in the coming years as more people expect fast transfer speeds and integrate high-tech smart devices in their daily lives. 

But as edge data centers become more widely available and easy to maintain, more technologies will emerge to take advantage of these resources. 

Artificial intelligence (AI), for example, is expected to have a high impact on many industries and applications. It’s impossible to predict how AI could be used if the edge infrastructure were in place to support rapid expansion.  

Rapid growth in VR technology and virtual worlds signifies a need for powerful edge processing with low latency in an industry that hasn’t yet reached its peak. 

If you’ve been on the edge—so to speak—about adding edge data centers to your operations, this might be the perfect time to consider it. ServerLIFT® has a wide array of lift devices to help make the setup of edge computing facilities faster and safer in facilities that can accommodate data center lifts. Contact our Client Services team for more information.

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