Demand for ‘edge’ data centres rises amidst pandemic

27 edge data centres will be built across Australia within the next two years.

Rapid growth in demand for data processing capacity is stimulating the development of edge data centres. According to CBRE, an edge data centre is a smaller facility located close to users and serving a small, limited area. 

Despite possessing a much smaller IT capacity equivalent to 5% or less of that of a conventional data centre, edge data centres can provide low latency simply by being located closer to end-users. 

Here’s more from CBRE:

The need for edge data centres is stronger in large and dispersed markets where user catchments may be located some distance from connectivity hubs. These opportunities exist in several potential Tier I edge data centre markets in Asia Pacific, led by suburban areas in Japan and Australia. Recent activity in this segment includes Leading Edge Data Centres’ announcement that it would build 27 edge data centres across New South Wales, Victoria and Queensland in Australia within the next two years. 

Demand for edge data centres is currently being driven by consumer and business requirements for remote working and video streaming. In the longer term, CBRE expects the wider commercialisation of 5G, the proliferation of Internet of Things (IoT) in industrial settings, and the growth of smart cities to drive future demand for edge data centres. 

The pandemic has boosted demand for remote management and/or remote hands services. In the U.S., QTS Realty Trust reported a 20% y-o-y increase in new unique logins to their service delivery platform (SDP) in 20203 . Remote monitoring systems allow customers to have real-time visibility on critical functions such as environmental controls, physical security, and network connectivity. 

Remote hands services allow on-site technicians, engineers and operators to provide on-demand operational support such as circuit testing and equipment replacement around the clock on customers’ behalf. 

The shift to more remote management will continue in the coming years, with 46% of respondents to a recent IDC survey stating that they plan to invest in remote monitoring and control technology for their data centres.