Global Edge Data Centre Market Hit 317 Bil 2026 Jll

According to a press release issued by real estate consulting firm JLL on August 12, the market value for edge IT infrastructure and data centres is projected to reach $317 billion by 2026. This represents a significant increase from the $153 billion valuation in 2020. Edge data centres are facilities located in close proximity to where data is generated or used, enabling faster data processing and analysis for quicker decision-making and more efficient operations.

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This forecast from JLL comes as advancements in technologies such as generative artificial intelligence (AI) and Internet of Things (IoT) require the faster data transfer and higher computational speed that edge data centres can provide. The firm predicts that the growth of edge IT infrastructure, which involves device vendors, chip manufacturers, telco providers, hyperscalers, data centre operators, and cloud service providers, will mirror the expansion of IoT devices. This is expected to grow at a compound annual growth rate of 9.8% over the next five years, driven by industries in areas like mining, energy, public services, retail, and logistics.

The demand for products and services with low latency, faster computing speeds, and generative AI technology is also expected to contribute to the growth of edge IT infrastructure. For example, the video game industry has seen the need for edge computing that can optimize gameplay without the need for hardware upgrades, thanks to innovations like cloud gaming. Additionally, edge IT infrastructure plays a crucial role in increasing internet penetration rates globally. JLL believes that significant opportunities exist in regions like Asia Pacific and the Middle East-North Africa, where there is a significant gap in internet and mobile penetration rates between urban and rural areas.

Jonathan Kinsey, EMEA lead and global chair of data centre solutions at JLL, emphasizes the importance of edge data centres in enabling the widespread adoption of technologies such as IoT and generative AI. He notes that by bringing the computing infrastructure closer to the data source and user, edge IT infrastructure will become a vital component of the global economy.