Data Center Services & Solutions: Powering the Backbone of the Internet

Data centers could be described as the backbone of the internet, housing the servers and hardware that keep our digital world running. As the demand for data storage and processing skyrockets, driven by the increase in cloud computing, streaming services, and a multitude of online platforms, the global data center market has witnessed a surge in investments. But which companies are capitalizing on this, aside from chip giants like NVIDIA and AMD? Let’s explore!

• Specialized power solutions: Companies like Schneider Electric and Siemens are crucial in providing uninterrupted power, essential for data center operations.

• Building management and security Innovations: Firms like Cisco and Bosch are advancing in data center automation and security, indicating the sector’s increasing complexity and focus on cybersecurity.

• Importance of HVAC solutions: Munters, IBM, and Dover’s roles in environmental control underscore the need for optimal conditions for technology efficiency in data centers.

• Private equity’s role in growth: Private equity firms are significantly investing in data centers, recognizing the sector’s potential for differential returns, as seen in major acquisitions like CyrusOne by KKR and Global Infrastructure Partners​​​.

This infographic features over 35 companies providing essential power distribution, security, and cooling solutions for data centers. Below it, we explore each respective niche in more detail.

Data Center Infrastructure Suppliers

1. Medium voltage (MV) power distribution: Companies like Schneider Electric, Siemens, and ABB are at the forefront of MV power distribution in data centers. Their expertise lies in providing reliable and efficient power distribution systems, which are essential for the smooth operation of data centers.

2. Backup power: The need for uninterrupted power is critical in data centers, and companies like Atlas Copco, Generac, and Caterpillar are leading the way in providing backup power solutions. These companies specialize in manufacturing generators and other backup systems to ensure data centers remain operational during power outages.

3. Uninterruptible power systems: EnerSys, Vertiv, and ABB are key players in providing uninterruptible power systems (UPS) to data centers. These systems are crucial for protecting against power disruptions and maintaining continuous power supply, thus safeguarding data and hardware.

4. Building automation: Legrand, Cisco, and Trane Technologies have made significant strides in building automation for data centers. Their technologies enable efficient management of data center operations, including power usage, cooling systems, and security protocols.

5. Security systems: With the growing emphasis on cybersecurity, companies like Fortinet, Securitas, and Bosch are providing advanced security systems to safeguard data centers against digital and physical threats. These systems include surveillance, access control, and network security solutions.

6. Heating, ventilation, and air conditioning (HVAC) Solutions: Maintaining optimal environmental conditions is crucial in data centers. Companies like Munters, IBM, and Dover offer HVAC solutions to ensure the right temperature and humidity levels, which are critical for the longevity and reliability of data center equipment.

7. Server cabinets: Eaton, Fujitsu, and Oracle are notable for their server cabinet solutions, which play a vital role in organizing and protecting critical data center hardware. Their cabinets are designed to facilitate effective cable management, cooling, and security.

8. Low voltage (LV) power distribution: For LV power distribution, Vertiv, Schneider Electric, and Mitsubishi Electric are key contributors. They provide systems that ensure the safe and efficient distribution of low voltage power within the data center infrastructure.

The data center sector’s growth is among other things fueled by the increasing demand for cloud services, streaming, 5G networks, autonomous vehicles, and the internet of things. The COVID-19 pandemic has further accelerated the shift towards digital and cloud-based solutions, increasing the global demand for data centers. However, the industry is also exposed to risks such as technology obsolescence, scalability issues, and environmental impacts like greenhouse gas emissions.

Private equity firms have become significant players in the development and acquisition of data centers, recognizing the sector’s potential for above-average growth and stable returns due to low tenant churn levels, especially in markets with low data center penetration. The involvement of private equity is evident in substantial investments and acquisitions, such as the $15 billion takeover of CyrusOne by KKR and Global Infrastructure Partners.

In summary, the expansion of data centers is not just a technological evolution but a comprehensive development involving various sectors and companies. From power distribution giants ensuring a steady and reliable energy supply, HVAC experts maintaining critical environmental conditions, to cybersecurity firms safeguarding vital data, every player contributes uniquely to the functioning of the world’s data centers.