An Overview Of The Enterprise Data Center Market

What is an Enterprise Data Center?

“An enterprise data center is typically a unit within a public or private sector organization that houses and maintains back-end information technology (IT) systems and data stores” (Gartner, 2017).

Enterprise data centers  typically operated for the benefit of the controlling enterprise. The technologies and capabilities of an enterprise data center will depend on the investment the organization is willing and able to make (CyrusOne, 2017). While many organizations with enterprise data centers operate their own data centers, for larger global organizations the operation and maintenance of the data center facility may be outsourced.

While investment in enterprise data centers is still increasing, the rate is less than in colocation data centers. For example, Uptime Institute’s 2016 Data Center Survey suggests that investment in enterprise data centers grew by 47% from 2014 to 2015 compared to 74% in the colocation sector. In fact, a recent study by the same source suggested that approx. 71% of IT assets were located in enterprise-owned data centers (Uptime Institute, 2016).



The primary benefit of enterprise data centers is that firms retain “complete command and control of their infrastructure” (Fortune, 2016). This is particularly the case for strategic and mission-critical applications which may contain commercially-sensitive data or highly customized. However, enterprise data centers are incredibly expensive in terms of physical real estate and related infrastructure (utilities, UPS, HVAC etc.), servers, storage and networking equipment, as well as the software systems and personnel to operate and maintain the data center (365 Data Centers, 2016).

Enterprise data centers continue to play an important role in the wider IT market however analysts suggest that over the coming years more and more enterprise IT workloads will shift to multi-tenant data centers or the cloud.

Interested in learning more? Download our free 2017  Data Center Market Briefing Paper.

This market briefing provides an overview of the global data center market, segmenting the market by both datacenter type and the individual hardware components that make up a data center. It outlines the factors influencing adoption of data centers worldwide and investigates the different factors changing the dynamics of this market, drawing on publicly available desk research from industry analysis to predict where this market will be in 2020.