Joshua Feinberg and Adam Gibson discuss the evolving landscape of data center deployment, comparing decentralized, hyperscale, and edge models.
Gibson highlights the varying definitions of edge and the challenges of large-scale deployments in remote areas like Alaska.
He notes the shift towards tier two and tier three markets due to their lower historical and infrastructure constraints, allowing for easier expansion.
Examples include New York's difficulty building large data centers due to historical preservation.
Gibson emphasizes the high demand and limited capacity, driving rapid growth in data center investments and expansions.
This video is excerpted from the podcast Ep. #38 Adam Gibson, VP of Global DC Development of Megaport | Data Center Go-to-Market Podcast.
Action Items
- Explore the growth potential and demand for data center capacity in tier two and tier three markets.
- Define the specific parameters and requirements for edge data centers based on the needs of different regions and providers.
- Identify potential locations for building new data center facilities to meet the growing demand.
Outline
Decentralized Data Centers vs. Hyperscale vs. Edge: Market Dynamics and Growth
- Joshua Feinberg asks whether decentralized, hyperscale, and edge computing will all grow at the same rate or whether success will vary depending on the size of the data centers.
- Adam Gibson discusses the ambiguity in defining edge, noting that for hyperscalers, edge might mean large deployments, while others see it as smaller, regional sites.
- He emphasizes that location plays a crucial role, citing Alaska as a remote location unsuitable for large-edge deployments.
- Adam explains that the definition of edge is often influenced by market demand and provider focus areas, leading to market winners and losers. He shares a personal anecdote about being in the right industry but the wrong state, highlighting the regional variations in data center growth.
- Adam observes that tier two and tier three markets are gaining prominence due to demand, capacity, and availability, often outpacing traditional tier one markets. He mentions New York as an example of a city with historical constraints that make large-scale data center expansion challenging.
- Adam concludes by noting the high demand for data center capacity and the rapid growth in the industry, suggesting that companies are expanding their footprints as quickly as possible to meet this demand.
Resources
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