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Why Data Center Demand is Booming?


Why Data Center Demand is Booming Right Now?

Among the trends that have emerged since the start of Covid-19, one in particular stands out — data center demand. Driven by the need to replace in-person communication with virtual alternatives, the rapid adoption of cloud offerings has largely offset the pandemic-induced dip in demand for consumer electronics and smartphones.

With 1.2 billion children in 186 countries out of the classroom, the impact on e-learning has not gone unnoticed. The 644% uptick in enrollments — totaling 10.3 million — that online learning platform Coursera reported year-over-year in April is just one of many telling stats. Another is Alibaba’s record-breaking deployment of more than 100,000 cloud servers to accommodate its distance learning solution, DingTalk, in just two hours.

Education technology was already a high-growth market before Covid-19 hit. Now, the overall market for online education — language apps, virtual tutoring, online conferencing, etc. — is projected to reach $350 billion by 2025.

“Unprecedented” may be an overused term these days, but it really is the most apt description for the staggering demand for telehealth services that the healthcare sector has experienced in recent months. Appointments via PlushCare are up by 70%. Amwell had its app use increase by a whopping 158% in the United States between January and March — before the reverberations of Covid-19 were truly felt.

“Any technology infrastructure experiencing such a large increase in demand would experience impact,” an Amwell VP noted.

And the widespread adoption of telehealth may be here to stay even after the virus subsides if it can overcome certain legal, regulatory, and reimbursement challenges, according to The American Journal of Managed Care.

Ninety million monthly active users. That’s how many consumers turned to the Xbox Live online gaming service during the quarantine, a record for the company. The Xbox Game Pass also hit a new high with 10 million subscribers. With such a surging user base, it’s not surprising online gaming plays a significant role in new demand for colocation data center space.

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