The Raritan Blog

Why Edge Data Centers Are the Future

Posted on May 13, 2021 by Gento

Enterprises, telecommunications companies, and cloud service providers will increasingly invest in edge data centers in the coming years to speed applications such as streaming video, factory automation, and telemedicine; and enable new technologies, such as autonomous vehicles and augmented and virtual reality (AR/VR). 

PricewaterhouseCoopers predicts that the global market for edge data centers will more than triple, from $4 billion in 2017 to $13.5 billion in 2024. 

Edge data centers are small data centers located at the edge of the network, where they are closer to users and devices. Having compute power at the edge enables faster performance and lower latency because organizations don’t have to move the data to far-flung data centers to process it.  

For example, by keeping data and compute power at the edge, a factory that manufactures car seats can use visual analytics algorithms to detect defects in real-time, according to Accenture.  

Besides AI and factory automation, a recent Data Center Frontier story said prominent edge computing use cases include: 

  • Content delivery. Video streaming is more popular than ever, and content delivery networks must now handle larger 4K video. The use of edge data centers not only ensures fast, high-quality video to consumers, but with streaming services increasingly producing unique content, edge data centers allow film and TV production crews to send their “dailies” – raw, unedited footage – back to their studios every day. 
  • Gaming. Video games and eSports is perhaps the fastest-growing consumer use case for the need for low-latency connectivity.  
  • 5G and 4G infrastructure. Mobile carriers are making huge investments in 5G networks, while their existing 4G networks face increased demand for new services and existing applications. Edge data centers ensure good customer experiences for these 5G and 4G services and applications. 
  • Telemedicine. The pandemic sped the adoption of virtual doctor visits. But for the healthcare industry to improve telemedicine services, it will require more local infrastructure to integrate medical imaging.  
  • Autonomous Vehicles. Self-driving cars will require massive compute power at the edge and could generate up to 5TB of data an hour.   

Enterprises and Telcos Drive Edge Data Center Growth  

Today, enterprises and telecommunications companies are the biggest drivers of edge data centers, according to a recent Data Center Knowledge story. Meanwhile, cloud service providers are already on the edge and are continuing to build out its presence there.   

For enterprises, the biggest driver of edge data centers is industrial automation and using IoT to enable smart manufacturing, but they are also using it for healthcare and retail, the story said.  

Enterprises are deploying edge computing infrastructure on their own premises, such as factory floors or retail branches, but they are also relying on local and regional colocation data centers, Omdia analyst Cliff Grossner told Data Center Knowledge.  

Content delivery network capacity and network function virtualization are currently the biggest drivers of edge deployments for telcos. The use of edge data centers for next-generation applications such as autonomous vehicles and AR/VR are still in their infancy. In the future, telcos are expected to invest more in edge data centers to pursue new revenue streams from autonomous-vehicle communications, AR/VR as well as video content delivery and gaming, the story said. 

Other Blog Posts

Supercomputing in the Quantum World
Posted on September 1, 2021
Fire and Ice: Data Center Environmental Monitoring
Posted on August 19, 2021
Deploying High Density Rack Power to Support HPC in Higher Education
Posted on August 11, 2021
Recruiting Women Can Alleviate Data Center Staffing Shortage
Posted on August 3, 2021
Optimizing Space and Power in a Data Center
Posted on May 24, 2021

View all Blog Posts

Subscribe

Upcoming Events

Data Cloud India
February 5-6, 2020  •  Mumbai, India
Industrial Automation
April 24, 2020  •  Tainan, Taiwan
DigiTimes Data Center Forum Taipei
May 8, 2020  •  Taipei, Taiwan
Cloud & Data Center Convention (Wmedia)
May 14, 2020  •  Manila, Philippines
Industrial Automation
May 14, 2020  •  Taipei, Taiwan

View all Events

Latest News

Raritan Reveals The MasterConsole® Digital Dual KVM Switch
Posted on February 18, 2021
Legrand Data, Power and Control Division Announced as Finalist in Six Categories at DCS Awards 2020
Posted on November 9, 2020
Raritan’s New Smart Rack Controller (SRC) Intelligently Manages Environmental and Security Information in Data Centers and Mission-Critical Facilities
Posted on November 9, 2020
Legrand India Launches Datacenter Infrastructure Solution for the addressable market size of INR 3000 crores
Posted on August 23, 2020
Raritan Introduces Economical New Generation KVM-Over-IP Switch and Serial Access for SMBs
Posted on March 16, 2020

View all news