The gobal news for edge data centers, driven by rapid advancements in data-intensive technologies like IoT and generative AI, is poised to soar, reaching $317 billion by 2026, according to JLL’s latest forecast. This represents a 107% increase from its 2020 valuation of $153 billion.
Edge data centers, which process and analyze data closer to where it is generated, are becoming critical to managing the growing demand for faster data transfer and higher computational power. The demand for low latency, high bandwidth, and enhanced data security is propelling edge infrastructure development, particularly in regions like Asia Pacific and the Middle East, where internet penetration and mobile usage are on the rise.
JLL’s analysis also highlights the growing need for edge computing, with the IoT market expected to expand at a compound annual growth rate (CAGR) of 9.8% over the next five years. As generative AI and other data-driven technologies demand more immediate data processing, edge data centers will be key to supporting global business operations and improving security measures.
Jonathan Kinsey, EMEA Lead and Global Chair of Data Centre Solutions at JLL, emphasized that edge IT infrastructure will play an essential role in the future digital economy by enhancing efficiency and protecting businesses from potential disruptions. The widespread adoption of edge data centers is anticipated to be a crucial component of both the cloud environment and the global economy moving forward.