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All issuesVolume 304, Issue 2IT NewsOperations

Datacenter Industry Sees Demand Growing, But So Are Energy Costs

The Register, Tuesday, July 11,2023

Datacenter operators are confident demand for their services will continue to increase, but worry about the high cost of energy, their ability to source UPS hardware and cooling units, and crucially, being able to hire staff with requisite skills in a competitive market.

According to a survey by consulting outfit BCS, the datacenter industry is preparing for a boom over the coming year. Respondents including colocation providers, corporate datacenter users, developers and investors, and IT and telecom service providers said that not only is the sector growing, they're concerned they can't get staff with the right skills to shoulder their servers; a full 98 percent said they thought they'd struggle to find employees in the coming year.

In the six months to the end of April, around three-quarters of respondents said they'd increased their managed datacenter capacity, despite cautious behavior in every other part of the technology sector due to economic turbulence. This growth "continues to be encouraging" for the datacenter industry, the report's authors said.

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