Global Edge Data Centre Market Hit 317 Bil 2026 Jll
According to a recent press release from real estate consulting firm JLL, the market value for edge IT infrastructure and data centres is projected to reach $317 billion by 2026. This is a significant increase from the $153 billion market value in 2020.
Edge data centres are facilities that are strategically located closer to the source and/or users of data. This allows for faster processing and analysis of data in real-time, enabling quicker decision-making and more efficient operations.
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JLL’s forecast is in line with the growing demand for technologies like generative artificial intelligence (AI) and Internet of Things (IoT), which require high-speed data transfer and computation capabilities that edge data centres can provide.
This rise in edge IT infrastructure is expected to mirror the growth of IoT devices, which are projected to expand at a compound annual growth rate of 9.8% over the next five years. Industries such as mining, energy, public services, retail, and logistics are driving this growth.
The demand for products and services that rely on low latency, faster computing speeds, and generative AI technology is also contributing to the need for edge IT infrastructure. A prime example is the video game industry, where innovations like cloud gaming have increased the demand for edge computing that can optimize gameplay without the need for hardware upgrades.
Moreover, edge IT infrastructure plays a vital role in expanding internet penetration rates globally. JLL identifies significant opportunities in regions such as Asia Pacific and Middle East North Africa, where there is a significant gap in internet and mobile penetration rates between urban and rural areas.
According to Jonathan Kinsey, EMEA lead and global chair of data centre solutions at JLL, edge data centres are essential for the widespread adoption of technologies like IoT and generative AI. He believes that by bringing computing infrastructure closer to the source and user of data, edge IT infrastructure will become an integral part of the international economy.