2023 Forecast for the Data Center Industry

2 min readJan 6, 2023

The year 2022 have been somewhat turbulent for the data center industry. Fortunately, things seem to have changed for better. Reliable market research suggests that there is going to be some positive developments in the data center sector, for the year 2023.

In this post, we have rounded up our top five forecasts related to the data center industry for the upcoming years.

Automation of Data Center Becoming Popular

The global data center automation market is expected to reach a whopping US $ 20.9 billion, by the year 2030. Higher spending in Cloud native servers, along with 5G networking technologies, will further add to the rise in data center automation.

Higher market demands to have more effective servers, resilient infrastructures and power systems have also added to data center automation popularity.

Rising Investments in Cloud Native Technologies

For the year 2023 and beyond, industry Cloud platforms and Cloud native technologies will be shaping the world of the Cloud.

The demand for Cloud native technologies, such as Kubernetes and containers will grow manifolds in the upcoming years. According to Gartner, over 50% of businesses will adopt Cloud platforms to further their operations, by the year 2027.

Prioritizing Sustainability

According to Gartner, businesses will now shift towards investing in more sustainable technologies in their operations to keep a “greener” supply chain. Gartner’s survey suggests that 87% of the business executives showed their interest to invest in green technology to fulfil their environmental, social, and governance (ESG) goals.

SASE Gaining Traction

Cybersecurity will become every enterprise’s top most priority in the upcoming years. A report by Dell’Oro Group suggested that during the 3rd quarter of the year 2022, there was a 33% growth in Secure Access Service Edge (SASE) revenue. In 2023, investment in the SASE market is expected to reach US$ 8 billion. This shift can be majorly attributed to rapid surge in hybrid working environments and Cloud Computing technology.

Chip Manufacturing on the Rise

The international semiconductor industry is forecast to be injected with hefty investments to manufacture chips. In 2023 alone, 28 new semiconductor factories will be constructed. These facilities will be backed by government funding, depicting their strategic value on the global scale. Countries such as, China, USA and some other European states are leading in the global chip making market.

It is high time IT leaders take a step back and contemplate how they have adapted to the complex and dynamic market conditions. Everything from technologies, operating models and imperatives have changed. They should now adapt in accordance to the changing times and lay strong ground work to embrace all the latest trends.




Intelligent IT as a Service. Let #ATSG Transform Your IT Experience!