Industry Analysis & Industry Trends
Data centres provide electronic information storage services that enable users to upload, download, backup and access files and systems. The industry has performed well over the past five years, primarily due to growing internet traffic, the increasing prominence of cloud computing and the outsourcing of data storage by many businesses. Cloud computing has enabled companies to reduce their storage and computing costs, as capacity can easily be scaled up or down depending on demand. In contrast, firms that maintain their own servers in-house incur considerable capital expenditure and utility costs. As a result, outsourced data centres have grown over the past five years. Over the five years through 2014-15, industry revenue is forecast to grow at an annualised 11.0% to reach $600.6... purchase to read more
Industry Report - Starting a New Business Chapter
The industry exhibits high barriers to entry, given the capital investment required, appropriate site selection, recruiting expert staff and difficulty in obtaining large contracts. Constructing a new data centre can cost anywhere from $50 to $200 million. This is a significant capital outlay, which is unlikely to simply come from a few individual investors. New business must raise a mix of equity and debt capital. Obtaining the right location is also vital. The appropriate location needs to have reliable power supply, security and the ability to be expanded in the future.
Over the past decade, basic industry equipment costs have declined, while providing faster processing power... purchase to read more