Data centers are growing in importance. 2023 through the eyes of specialists of new technology

What will the data center industry look like in 2023? Over the next 12 months, due to prevailing general trends and the overall geopolitical situation, the industry is expected to see an increase in the market value and a concurrent verification of the rationale of continuing to operate older data centers without certification. The focus will be on edge computing, carbon footprint reduction, colocation, and data security, all within the context of the energy crisis.

Digitization, the growth of Big Data, the expansion of remote work models, and the further adaptation of the Internet of Things leads to a greater demand for new data centers. The total value of this market, according to Statista, will reach $342 billion in the next 12 months, up by 6.4% compared to 2022. By 2027, it will reach an estimated $412 billion.

A word to remember: edge computing

Internet of Things (IoT) has become a part of our everyday life. Smartphones, laptops, or smartwatches are not the only devices that are connected to the network. Smart cars and other means of transport, household appliances, medical devices, production measurement devices, logistics tracking devices, security systems,  and entertainment systems, among other are all connected to the network. These devices send and receive zettabytes (millions of gigabytes) of information annually. Statistics from IoT Analytics 2022 show that in 2023 the number of IoT devices will increase by 18% – to 14.4 billion globally.

IoT requires a reliable and secure infrastructure, which creates the need to place computing, storage, and analytics infrastructure in proximity to where the data is created. That is why 2023 is predicted to be a time of intense growth in edge computing. Research firm Presence Research estimates that the edge computing global market will reach $51.2 billion this year, and by 2030 this value will more than double – to $116.5 billion.

– Some solutions and technologies require instantaneous transmission and data processing, such as autonomous cars or life support systems in hospitals. Edge computing makes it possible to reduce delays in data transmission, thereby speeding up the decision-making process or the operation of applications. Edge computing makes the implementation of technologies that would otherwise not have been possible to implement possible. This model may seem like a form of a departure from the cloud, but the two technologies complement each other perfectly. By combining the two solutions, we can build a flexible and scalable infrastructure that instantly and securely processes data in close physical proximity from the end user, explains Wojciech Stramski, CEO of, a polish provider of secure data center and cloud services.

In 2023, we will witness an ever-closer ‘love affair’ between edge computing and artificial intelligence. Networks using AI allow for the dynamic routing and automation of tasks. It means that smart devices can communicate with each other but also take decisions and make repairs based on data in real time, which helps reduce the need for manual configuration.

Colocation – hotels for servers

Due to, among others, the significant rise of the price of energy, its potential lack of availability, and the rising price of land and construction and equipment costs, companies will be looking for alternatives to traditional on-premise models for maintaining IT infrastructure, which will drive greater interest in colocation services.

– The primary factor contributing to the growth of the colocation market is the need to increase control over operating costs while ensuring access to professional and secure IT services. Clients can only sometimes afford to create or expand their on-premise data center infrastructure with the required computing power and protection against power outages. Colocation is a convenient means to optimize expenses. Nowadays, it is also vital to take into account elements supporting sustainability and use energy-efficient solutions that only specialized data center facilities can afford, says Tomasz Kwiczor, Colocation Services Director at

The latest report from research firm Arizton indicates that 2023 will be a record year in terms of the value of the colocation sector. Its valuation is estimated to reach $8.2 billion, and the cumulative annual growth rate in 2023-30 will be 13.22%.

Poland is in the forefront of countries that will record a marked increase in demand for colocation services. Poland is already the clear leader in the CEE region, and this position will be maintained. The competitive advantages of colocation services delivered by data centers in Poland are a service quality equal as in the West, geographic proximity to the markets, ensuring optimal data transfer times between the East and the West, modern and secure data center infrastructure, lower energy prices, and a better price/ quality ratio of the service.

Security – without proper certification, you are out of the game

The unstable geopolitical situation, the energy crisis, and the increasing demand for data center services, juxtaposed with the growing dependence of companies on constant access to data, make the reliability and continuity of service delivery by the data center increasingly important. A general rule of thumb is at work here: the higher the level of certification, the lower the risk of disruption and security breach to the client’s IT infrastructure.

– Data center and cloud service providers can promise anything in their marketing materials. Still, the certification awarded by an independent body is an objective and independent confirmation of the actual data center quality level. Of course, only select clients require the highest possible availability of services; however, large companies in the financial, insurance, and manufacturing sectors – definitely do. Certification is one of the most important criteria that should be analyzed when choosing a data center operator and colocation service provider because it minimizes the risk of costly downtime and guarantees receiving the service at the required level, points out Wojciech Stramski of

Procuring services from data centers with the highest levels of certification, i.e., those certified with the ANSI/TIA-942 Rated 4 certification, and there are only 26 such in the world (including one in Poland,, will be a visible trend among companies in industries with high requirements for security and business continuity of IT services. These include companies from the financial and insurance, heavy industry, and e-commerce sectors and providers of resources and services that are key to social and economic stability, such as energy and medical services.

In the context of security, one should not forget to ensure the appropriate security of critical infrastructure against attacks. Power plants, gas pipelines, and refineries are increasingly exposed to operations supported by machinery and equipment connected to the network.

– The digitization of mission-critical facilities means that network reliability will be essential for the operation of basic services, says Krzysztof Wojtowicz from ICsec, and adds: – The exponential increase in the number of connected devices and data transmission will significantly increase the scope and scale of exposure to potential network attacks, so in the coming years, the growth in the value of the Internet of Things market must be supported by an exponential increase in security spend both from an infrastructure and software perspective. Network traffic monitoring probes are an example.

Sustainability is becoming the norm

The digital transformation of businesses is leading to increasing demand for additional computing power, disk space, and equipment, and concurrently for energy. As calculations by Schneider Electric show, by 2025, because of digitalization, data centers will consume 54% more energy than in 2022 (an increase from 229 to 407 TWh). Data from the International Energy Agency’s study “Data Centers and Data Transmission Networks” currently puts global CO2 emissions from data centers at around 0.9-1.3%. The data center industry is expected to decarbonize and move toward climate neutrality.

Reducing the carbon footprint will take center stage in 2023. A report by research firm IMARC Group titled “Green Data Center Market Size: Global Trends, Share, Size, Growth and Forecast 2022-2027” indicates that the green data center market will grow by an average of 22.9% year-on-year to reach $200.84 billion in 2027. Increasing energy efficiency and reducing the carbon footprint are closely correlated – focusing on “green” solutions, validated by standards such as ISO 14001, reduces not only utility bills but also the negative impact on the environment.

In 2023, energy will also play a leading role in the data center market. In the face of the energy crisis, clients will be more likely to choose data center services that are adequately protected against blackouts. Data center operators with poor energy efficiency will, in turn, become increasingly unattractive in the market, as the energy costs of maintenance of IT infrastructure will deter clients.

– Technological solutions that reduce energy consumption in the data center are more expensive to implement than standard ones but achieve savings in the long term. Remember that the electricity used to power and cool the servers is one of the most essential IT infrastructure maintenance costs. In practice, the lower the power consumption, the lower the bills for the end clients can be, and these clients, when selecting a data center, often are increasingly paying attention to the Power Usage Effectiveness (PUE) factor, as well as whether the electricity comes from sustainable sources. The lower the PUE, the higher the efficiency of the data center facility and the lower the energy bills of the colocation service, while at the same time eliminating the carbon footprint, explains Adam Ważyński, Enterprise Sales Manager, Secure Power division, Schneider Electric.