10 Data Centers to watch in 2023

Hyperscalers and enterprise data center growth is projected to continue to race higher as digital transformation drives demand for the bedrock technology.

The multi-cloud world is here and data center and colocation vendors are experiencing massive growth as the surging popularity of IoT, 5G networks and streaming content fuel an unrelenting demand for capacity.

In fact, over the next four years the U.S. data center construction market is expected to grow at a 3-percent compound annual rate, according to a study by Arizton Advisory & Intelligence.

Arizton’s analysis projects that 2.8 gigawatts of capacity will by added at a cost of around $25 billion by 2027, and a physical footprint of 20-million square feet.

With hyperscalers such as Amazon, Google, Apple, and Facebook driving about 90 percent of the expansion, enterprise data centers are being built now in high-demand areas such as Washington D.C., and the Pacific Northwest to leverage the lowest latency possible for the highest number of customers.

But its not just the massive players like Equinix and Digital Realty who find success.

Smaller provides like Aligned Data Centers, and Evocative are building their networks though acquisition in international territories and construction at home.

But even among the biggest names with the best balance sheets, change is constant.

Digital Realty’s longtime CEO, Bill Stein, was cut suddenly “without cause” in December after nearly 18 years with the company. Stein had just led the company to record bookings in three of its last four quarters. He was replaced by CFO Andrew Power. Stein was also the company’s CFO from 2004 to 2014.

Meanwhile companies like TierPoint and Flexential, while smaller than rivals, are making huge bets on 2023 with millions dedicated to new construction and enhancements to their data center practices.