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10 Data Center Trends to Watch in 2024

10 Data Center Trends to Watch in 2024

Data centers are pivotal hubs for storing, processing and distributing critical data and applications for enterprise operations. Its significance lies in safeguarding an organization’s most crucial assets, making security and reliability paramount. Traditionally, data center infrastructures were controlled by physical environments. However, the rise of the public cloud has transformed this model. The shift from physical servers to virtualized infrastructure across multi-cloud environments marks a significant evolution. Application workloads now span multiple data centers and hybrid clouds.

PREDICTIONS SERIES 2024 - CIO Influence

While not a daily concern for CIOs, understanding data center operations, especially outages, is vital. These incidents pose a significant risk to an organization’s performance and profitability, falling within a CIO’s responsibilities. The modern data center is defined by its adaptability to accommodate workloads across diverse environments. This modern architecture leverages virtualization, cloud integration, and software-defined networking for scalability and flexibility.

In 2024, data center development continues, with enterprises adapting to the demands of an interconnected digital landscape. Exploring data center security considerations will offer insights into their implications and aid in strategic preparedness.

Hybrid Cloud Data Center Security

Hybrid cloud data centers blend traditional and cloud technologies, offering expanded business prospects alongside heightened security risks. Ensuring visibility and control across architectures is crucial in this landscape, demanding a standardized security approach regardless of specific environments.

Conventional security structures with perimeter firewalls face limitations in today’s cloud-centric setting, where port-based firewalls struggle with increased complexities in networking and cybersecurity.

Effective security entails fortifying perimeters and establishing trust zones within networks. Real-time traffic filtering between diverse trust-level applications using intrusion prevention and DNS security is vital. Extending this protection to public clouds ensures uniform security in hybrid environments.

Implementing security at multiple layers—perimeter, network, and hosts—is vital for dynamic workload protection. An updated strategy involves goal-setting, access strategies, current state assessments, segmentation planning, and phased best practice implementation.

Key Elements of Palo Alto Data Center Infrastructure

Palo Alto describes the components of a data center, regardless of its specific purpose, as integral to its effective operation and security. Whether it serves a cloud giant like Amazon or a government facility safeguarding classified data, ensuring the facility and its equipment are fortified against intruders and cyber threats remains paramount.

Breaking down the core elements:

  1. Facility: The physical space housing IT equipment. Data centers, often energy-intensive, require meticulous design for optimal space utilization and environmental control. Maintaining specific temperature and humidity levels is critical.
  2. Core Components: The backbone of IT operations and data/applications storage. This encompasses storage systems, servers, network infrastructure (e.g., switches, routers), and key security elements like next-gen firewalls.
  3. Support Infrastructure: Crucial for ensuring maximum availability, as classified by the Uptime Institute’s tier system. Components include:
    • Uninterruptible Power Sources (UPS): Battery banks, generators, and redundant power sources.
    • Environmental Control: Systems like CRAC, HVAC, and exhaust systems for climate regulation.
    • Physical Security Systems: Biometrics and video surveillance to bolster security measures.
  4. Data Center Operations Staff: Vital personnel providing round-the-clock monitoring and maintenance of IT and infrastructure equipment.

Top Data Center Trends for 2024

On-premises adoption of Cloud Principles in Data Centers

A burgeoning trend in data center management involves assimilating cloud principles into on-premises infrastructure. Leveraging software-defined infrastructure heralds a new era of unparalleled adaptability and governance. This approach empowers data centers to dynamically allocate and oversee resources, unshackled from hardware constraints, enabling swift adaptation to evolving business requirements.

Automation strategies play a pivotal role in expediting workflows and mitigating human errors. Its implementation forecasts a notable reduction in operational downtime as data centers streamline tasks with precision. Augmenting this efficiency, cloud orchestration strategies orchestrate intricate processes and workflows, fostering a unified ecosystem where diverse components and systems synergize seamlessly. Embracing these strategies solidifies their position among the foremost data center trends of 2024.

Power of Hyperscale Data Centers as a Dominant Trend

The pervasive influence of hyperscale data centers is set to characterize the data center landscape. These colossal facilities, designed for rapid and seamless deployment of many servers, transcend conventional data centers in scale and sophistication. They cater primarily to tech giants and businesses dealing with immense data volumes for creation and analysis.

Due to the complexity and enormity of their workloads, cloud data centers necessitate a heightened level of automation compared to traditional counterparts. Modular architectures and components are commonplace in hyperscale data centers, facilitating swift deployment, expansion, and customization.

Presently, the market for hyperscale data centers is under the command of major players such as Amazon, Microsoft, Alphabet, Alibaba, and Facebook. Despite prevailing economic fluctuations, 2023 forecasts an expansion of hyperscale data centers, substantiating their enduring dominance within the industry.

Artificial Intelligence Integration in Data Center

The transformative influence of Artificial Intelligence (AI) is undeniably steering a new phase of demand within the data center industry. Existing data centers, including multi-tenant facilities, must upgrade to accommodate the heightened processing demands of AI. Concurrently, companies are anticipated to elevate spending on hyperscale data centers by 20 percent.

The surge in AI and swift technological advancements, spanning IoT devices to 5G, is driving modern data centers to consume unprecedented energy. McKinsey forecasts a surge in data center demand, projected to escalate to 35 gigawatts by 2030 from the existing 17 gigawatts recorded in 2022. – Dirk Naylor, Wesco

While some data centers may undergo retrofitting to incorporate liquid cooling, the protracted timelines and associated revenue losses make building modern data centers from the ground up a more prevalent option. Companies strategically implementing flexible data center infrastructure strategies are poised to leverage the AI revolution, positioning themselves for substantial growth in the evolving data center landscape.

Rise of Cloud Infrastructure Services as Enterprise Preference

In 2020, enterprises globally directed approximately $130 billion toward cloud infrastructure services, surpassing the $90 billion spent on data center products. This marked a significant shift, with Synergy Research Group reporting a 35 percent annual increase in spending on cloud infrastructure services, while spending on owned data center hardware and software experienced a 6 percent decline, dropping to $89 billion.

The parity between cloud infrastructure services and data center products, with both segments hovering around $95 billion, underwent a substantial transformation, as stated by John Dinsdale, Chief Analyst at Synergy Research Group.

Dinsdale emphasized the decisive trend where enterprise spending on cloud services, after a decade, surged ahead of spending on data center hardware and software. This pattern indicates a sustained preference among CIOs and business leaders, with cloud services gaining continued favor as the preferred avenue.

Rapid Expansion of Automation and Robotics

The global pandemic has spurred an accelerated push towards reducing human reliance in data center operations, catalyzed by the surge in software automation and artificial intelligence innovations. This transformation underscores the industry’s recognition of the benefits of deploying intelligent, self-sufficient systems to handle routine tasks and navigate complex distributed environments.

AFCOM’s State of the Data Center Industry study highlights a significant trend: over 40 percent of respondents anticipate deploying robotics and automation for data center monitoring and maintenance within the next three years. Only 16 percent have implemented these solutions, with an additional 35 percent aiming to integrate such systems by 2024. Data center automation revolutionizes routine workflows and processes, enabling tasks like scheduling, monitoring, maintenance, and application delivery to be efficiently managed and executed without human intervention.

Rise of Data Center As-A-Service Targeting Public Clouds

The predominant trend shaping the data center landscape revolves around a seismic shift in how customers seek to procure and manage data center solutions. The inclination leans heavily towards a consumption-based, pay-per-use model, mirroring the successful approach long offered by leading public cloud providers.

Major data center infrastructure giants such as Hewlett Packard Enterprise and Dell Technologies are intensifying their commitment to this paradigm shift. Dell Technologies’ Apex, a comprehensive as-a-service portfolio valued within the $94 billion company. This portfolio includes offerings like Apex Data Storage Services and Apex Cloud Services. According to Dell’s top executives, Apex is positioned to deliver an enhanced cloud experience, offering improved cost-effectiveness, control, and operational simplicity compared to public cloud counterparts.

Allison Dew, Dell Technologies’ Global Chief Marketing Officer, highlighted this approach, emphasizing their pricing strategy’s transparency and competitive advantage. This transparent and cost-effective model resonates well with customers, particularly amid concerns about hidden costs often associated with other cloud models.

Rise of Generative AI Tools: A Transformative Shift

Generative AI applications have captivated public attention with the growing need and evolution of AI for businesses. These advancements showcased the ability to craft images, provide detailed responses, generate essays on intricate subjects, and expedite software programming.

Prominent AI applications like ChatCPT, Dall-E, Lensa AI, and GitHub Copilot emerged, leveraging machine learning algorithms to enable computers to create diverse content—text, images, audio, video, and code. OpenAI’s ChatGPT, unveiled on November 30, made a resounding impact, amassing a million users within 5 days.

Ashu Garg, General Partner at Foundation Capital, the unveiling of ChatGPT signifies AI’s pivotal ‘new world’ moment, drawing parallels to the transformative impact of the Netscape browser launch. Garg predicts that AI will swiftly and fundamentally reshape every major enterprise software category.

Enterprises increasingly recognize the potential of AI to enhance their products and services, fostering a surge in adoption. The momentum generated by ChatGPT is poised to accelerate this trend, propelling more enterprises to harness AI’s capabilities to bolster their devices and services.

Emergence of On-Site Power Generation

Data center projects must focus on integrating on-site energy generation for expansion, especially in grid-constrained markets. Microsoft’s initiative in Ireland, building a significant 170-megawatt gas-fired power plant and 21 smaller diesel generators, reflects this trend due to limitations set by Irish grid operator EirGrid for new data center developments in Dublin.

Similar strategies could arise in Northern Virginia’s Loudoun County, where Dominion Energy’s new power hookups face constraints until 2026 due to local high-capacity power transmission network limitations. The US market will also witness Edge Centres, introducing off-grid edge data centers powered by solar energy.

Increasing Focus on Chip-Level Security

The omnipresence of the internet has intensified security concerns, particularly regarding cyber threats. Heightened awareness of these risks has propelled companies toward innovative strategies for fortifying data center security. Global tech giants like Google are spearheading efforts to introduce chip-level security measures.

Under the OpenTitan initiative, a collaborative project aims to cultivate trustworthy chip designs specifically tailored for data centers. Google emphasizes that chip-level security will guarantee the integrity of both hardware and software, ensuring they remain incorruptible. This system will securely verify and authorize critical components to boot, preventing unauthorized code execution.

The implementation of chip-level security is poised to ensure secure server booting by validating firmware accuracy and shielding against low-level malware. This makes chip-level security a prominent data center trend warranting close attention within the industry.

Embrace Sustainability Initiatives with Green Data Centers

Amidst the broader corporate focus on sustainability, environmental stewardship has become a burgeoning trend. Historically known for their substantial carbon footprints due to extensive power requirements, data centers are now viewed as pivotal avenues for businesses to foster sustainability in alignment with climate change agendas.

Driven by heightened consumer and regulatory scrutiny of environmental impact, data centers are actively striving to curtail water consumption, reduce emissions, and enhance energy efficiency. This initiative gains urgency as regions grapple with water scarcity and droughts. Strategies to achieve sustainability goals include innovative cooling systems and a transition to renewable energy sources.

In a Nutshell

Advancements in technology are poised to revolutionize data center efficiency, automation, and storage capabilities. This transformation encompasses cutting-edge high-performance CPUs tailored for AI applications and innovative storage solutions.

Organizations must assimilate these technologies to successfully navigate this evolution, prioritizing seamless workload migrations and mobility. Central to overcoming these challenges will be integrating workload automation software and empowering IT teams to swiftly incorporate new systems and software. This approach ensures dependable workload management across diverse and dispersed ecosystems.

FAQs

1. What is a data center, and why are they crucial for enterprises?

Data centers are facilities housing computing hardware and systems for storing, processing and managing critical data and applications for business operations. They are vital for safeguarding a company’s most essential assets and ensuring security and reliability.

2. How have data center operations evolved due to the rise of the public cloud?

The advent of the public cloud has transformed data center models from physical server-centric setups to virtualized infrastructures across multi-cloud environments. This evolution allows application workloads to span multiple data centers and hybrid clouds.

3. What are the key security considerations for hybrid cloud data centers?

Hybrid cloud data centers blend traditional and cloud technologies, presenting expanded business opportunities and heightened security risks. Security necessitates visibility and control across architectures, demanding standardized approaches despite specific environments.

4. What role does AI play in data center evolution, and how is it affecting energy consumption?

AI integration in data centers demands upgrades to handle increased processing demands, leading to higher energy consumption. Due to AI-related technological advancements, companies are anticipated to double their spending on hyperscale data centers.

5. How are data center industry giants adapting to the shift towards data center-as-a-service models?

Major players like Hewlett Packard Enterprise and Dell Technologies are shifting focus towards as-a-service models, offering flexible, cost-effective, and transparent solutions that resonate well with customers.

[To share your insights with us, please write to sghosh@martechseries.com]

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