The North America data center server market reached a value of US$ 16.8 Billion in 2019. A data center is defined as a physical facility used by organizations to store critical data and applications. Since their inception, data centers have evolved from on-premise physical servers to virtual infrastructure, which provides support to workloads and applications across the multi-cloud environment. Some of the essential components included in a data center are switches, storage systems, application delivery controllers, routers, firewalls, and servers. Together, these components can offer a network and storage infrastructure and computing resources. To perform efficiently, a data center requires an appropriate, designated infrastructure, which typically consists of uninterruptible power supplies (UPS), cooling systems, backup generators, power subsystems, ventilation, fire suppression, and connections to external networks. Data centers are employed mainly for protecting the integrity and performance of the core data center components.
The North America data center server market is being driven by several factors. The large cache memory and storage capacity of servers employed in the data centers are currently fueling market growth in the region. Furthermore, the servers provide data security, integrity and scalability to the data stored in data centers. Thus, declining prices of servers have resulted in the increasing adoption of data centers across the region. Moreover, manufacturers have started conducting wide-scale R&D activities to develop new technologies, such as micro servers and blade servers, for differentiating their products, which has been positively influencing the market growth. Additionally, colocation providers, hyperscale operators, enterprises and government agencies have been investing heavily in improving the overall security of their data, which is also propelling the market growth. Moreover, the demand for data center servers is expected to be propelled by continuous technological innovations in power sources, such as lithium-ion UOS systems, DRUPS, and fuel cells. Looking forward, the market is expected to reach levels worth US$ 22.3 Billion by 2025 exhibiting a CAGR of 4.8% during 2020-2025.
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