Some thoughts about data centers

SenseiSteve

HD Moderator
Staff member
I was just reading this article on Datacenter.com and it raised some questions about this industry. With approximately 500 premier data centers already in existence and another 150 being built, the future looks very bright, especially with Covid forcing more businesses to conduct operations online.

Will this trend result in lower pricing because of increased competition, or vice versa?
 

Artashes

Administrator
Staff member
Definitely lower pricing.

Just as the past 20 years have reduced the price of a simple shared hosting plan from $40-50/month to $20/year, just as VPS and dedicated server pricing fell, the trend will continue.
 

clouvider

New member
Definitely lower pricing.

Just as the past 20 years have reduced the price of a simple shared hosting plan from $40-50/month to $20/year, just as VPS and dedicated server pricing fell, the trend will continue.
That’s not what we see in the wholesale collocation market however. These prices are more linked with real estate. While you may see the price of the final service reduced as density ever increases and hardware is ever more performing resulting in more services running of the same asset, the colo prices are set to at minimum keep up with the inflation but likely exceed this rate, especially in hot markets like New York or London.
 

ITivan80

Member
Pricing will probably reduce on server and space since there is space available and equipment as well. The thing that might not reduce is bandwidth and power. Some data centers are still running on power grids that are fed by utilities. Even though the new ones that are being build are counting on renewable energy to power up their facility. It is still long ways until we see power prices go down.
 
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