The global Edge data center market will soar to $317 billion by 2026, according to JLL’s latest report. This projection marks a significant increase from its 2020 valuation, more than doubling in just six years. The rise of AI and IoT technologies fuels this rapid growth.
The Growing Importance of Edge Data Centers
Edge data centers act as local hubs, processing data close to its source. By doing so, they enable businesses to make quicker decisions and operate more efficiently. Jonathan Kinsey from JLL emphasized, “As AI and IoT become more integral to our daily lives, Edge data centers will be the backbone, ensuring smooth and secure operations.”
Significant Growth and Opportunities
JLL’s report highlights that much of this growth is happening in the U.S., where 21% of new data centers are in Edge locations. Additionally, regions like Asia-Pacific and the Middle East are also expanding their Edge data center infrastructure.
Companies such as Liberty Global and Digital Bridge’s AtlasEdge lead the way, managing over 100 Edge data centers across Europe. Mobile carriers like Deutsche Telekom are also investing heavily. For instance, they recently launched a 5G network and Edge data center at Volkswagen’s port in Germany.
Looking Forward
As businesses increasingly need quick, local data processing, the demand for Edge data centers will keep rising. JLL projects that the growth of IoT devices will further drive this market, with an annual growth rate of 9.8% over the next five years.
In summary, Edge data centers are not just a passing trend. They are set to become a critical part of the tech infrastructure, powering everything from AI to everyday smart devices.
