Edge Data Center Market Size

Edge Data Center Market Size

Edge Data Center Market size was valued at USD 10.6 billion in 2023 and is estimated to register a CAGR of over 19% between 2024 and 2032. The rise in online services such as cloud computing, streaming, e-commerce, and digital communications are driving the growth of the market. As more businesses and consumers use online platforms, the need for data processing and storage near the network edge increases. Edge data centers located closer to users reduce delays, improve service quality, and enhance user experiences. This supports real-time applications, speeds up data transfers, and lessens the load on central data centers.

Organizations are investing in edge data centers to fulfill these increasing demands, ensure sustainable online services, and address latency and performance challenges. For instance, in March 2022, Hewlett Packard Enterprise announced significant advancements to HPE GreenLake which includes edge computing solutions. The platform offers flexible, scalable edge infrastructure to support growing demands for data processing and storage at the edge, enabling efficient delivery of online services.

Colocation edge data centers allow companies to grow significantly without the high costs of building and maintaining their facilities. This flexibility attracts both local and international companies looking to expand their digital infrastructure. The increase in digital transformation projects and the rising demand for cloud services are further boosting the popularity of edge data centers. In June 2024, Amazon Web Services (AWS) received permission to build its first data center in Chile. This USD 205 million project marks a significant milestone for the company's expansion in South America and reflects the burgeoning demand for cloud services in the region.

Integrating green storage systems with current infrastructure while maintaining strong security involves several challenges. Specialist skills are needed to seamlessly combine new sustainable systems with existing setups without sacrificing performance. This process often requires reconfiguring networks, maintaining compatibility with older systems, and updating security standards. Additional resources, including advanced cybersecurity measures, are necessary to protect against new vulnerabilities introduced by green technology. These challenges complicate data center operations, requiring a balance between sustainability goals, high data security standards, and operational efficiency.