Micro data centers: An explosion in demand, in slow motion

A wave of new technologies, from 5G to the internet of things (IoT) to artificial intelligence (AI), means much more computing and much more data will be needed near the point of use. That means many more small data centers will be required. But there will be no sudden mass deployment, no single standout use case, no single design dominating. Demand is likely to grow faster from 2022.

Small package, big impact

Suppliers in the data center industry are excited. Big vendors such as Schneider, Vertiv and Huawei have been rapidly adding to their product lines and redrawing their financial forecasts; startups — companies such as Vapor IO, EdgeMicro, EdgeInfra and MetroEDGE — are pioneering new designs; and established telco specialists, such as Ericsson, along with telco operators, are working on new technologies and partnerships. Builders and operators of colocation data centers, such as EdgeConneX, Equinix and Compass, are assessing where the opportunity lies.