Micro Data Centers, Scalable Solutions

The data center market has been long defined by mega-scale, massive, centralized hyperscale projects that serve as the backbone of the digital market. Considering how vast these markets are, their efficiency levels, time-sensitive transmission, and physical distance from end-users can create room for lags in latency. Paired with the evolution of the Internet of Things (IoT), the increase in 5G networking, and the demand for real time data storage and artificial intelligence, micro data centers serve as a solution. With low latency, localized computation, and near to no physical distance from the consumer, these facilities provide computing and storage solutions right at the network edge. Micro data centers complement the centralized cloud, enabling speed, responsiveness, efficiency, and low-latency to power connected technologies. 

Micro data centers serve various use cases across multiple industries. While playing a pivotal role in supporting 5G networks and infrastructure, their proximity to cell towers enables low-latency communications for autonomous vehicles and real time artificial intelligence. The Internet of Things allows the communication and exchange of data without human intervention, facilitating remote monitoring automation. Along with micro data center facilities, the need to send vast amounts of information across centralized cloud servers decreases, allowing on-site transmission and systemization. 

These facilities also play key roles in other various markets, offering on-site solutions for businesses in retail and banking. By providing robust infrastructure at remote and branch offices (ROBO) these facilities ensure the user faster streaming, browsing, and efficiency experiences. Micro data infrastructure can also be used in geographically isolated areas, to provide small-scale, independent IT infrastructure. Considering these units can withstand harsh conditions, on site-data processing comes with a much smaller risk in comparison to a large scaled building, offering more cost-effective and long term solutions to data transmission, especially for smaller businesses. Additionally, the rise of smart city infrastructure creates an increased demand for micro data centers. With connections to traffic lights, cameras, public sensors, streetlights, and other municipal infrastructure, micro facilities provide real-time traffic management, public safety surveillance, and utility grid optimization. 

Micro Data Center in Lake County, IL. LandGate platform.

By centralizing data center models to local processing, micro data centers conserve bandwidth and increase scalability, enabling businesses to expand computing capacity as demand increases. As our reliability on the digital landscape increases, paired with existing challenges in the larger data center market, micro data centers serve as crucial solutions. 

As of this year, the market for micro data centers is estimated to reach around $7.5 billion, an increase that is representative of the adoption of edge computing and exponential growth in demand for localized processing. With the United States serving as the largest market for micro data centers and edge computing, trends within the micro data center industry seem supplemental to already existing data hubs. Northern Virginia, California, Texas, Arizona and Chicago are just some areas where the market is booming, along with Colorado, Georgia and most of the East Coast to follow trends of emerging markets.  Projections across the market estimate valuations to exceed $60 billion by the end of the next decade, with the expansion of 5G networks to supplement such a boost. 

LandGate’s data center coverage spans across all data center types, and coupled with exclusive cell tower coverage, data center users and developers alike can benefit greatly from coupling 5G network infrastructure and micro-data centers 

To learn more, book a demo with our dedicated data center infrastructure team.