Many businesses are now demanding to shift their information technology operations to the cloud, and the data centers can provide cloud service. Data centers are generally imagined as warehouse-sized facilities that house racks of servers and other hardware controls. But now tech companies such as Microsoft, and Google are offering lease space in the facilities to cloud services. The increased growth of cloud computing is driving more alliance among data center operators.
Market-intelligence firm, Synergy Research Group Inc., has reported 52 mergers and acquisitions in the data center market within the first half of this year. There is an 18% increase from the last years’ first half. Most of the deals are involving data center operators buying competitors and forming joint ventures with each other.
According to International Data Corp, the number of data centers in the world that are operated by cloud service providers increased by 9,100 this year from 7,500 of last year. The inclination of businesses towards cloud services may be arisen due to a change in global Internet infrastructure. Tech giants like Microsoft are planning to build data centers underwater while Infrapedia has developed free to use global internet infrastructure map for helping tech engineers to strengthen the data availability.
Almost eight data center deals closed in July and fourteen deals are more pending. According to a report of Synergy, a total of 300 data center deals since 2015 value more than $65 billion. Current co-location services are providing physical space, power and cooling system for servers and hardware after connecting them to local communication grids and networks.
