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Rising Mobile Traffic Data Fueling Demand for Edge Data Centers

According to the International Telecommunication Union (ITU), the global mobile data traffic per month will surge from 543EB in 2025 to 4,394EB in 2030. Thus, the mounting mobile data traffic, on account of the increasing internet penetration and surging adoption of internet of things (IoT) devices and smartphones, will augment the establishment of edge data centers in the coming years.

These centers are small data centers that are located near the edge of a network. Such centers offer the same devices provided by the traditional data centers, but are confined to a smaller area andcloser to end-users and devices. Additionally, the mounting over-the-top traffic will also fuel the edge data center market at a CAGR of 25.4% during 2020–2030. The market revenue stood at $5.3 billion in 2019 and it is projected to reach $53.1 billion by 2030.


The surging OTT traffic can be attributed to the burgeoning demand for OTT services and rising shift toward online content. OTT platforms often experience latency due to the location of conventional data centers, which are usually established at long distances from users. At present, edge data center solutions are being largely utilized by the information technology (IT) and telecom sector, due to the soaring IT expenditure and escalating need for efficient IT services.

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Whereas, the banking, financial services, and insurance (BFSI) sector is also expected to adopt edge data center solutions at the fastest pace in the forthcoming years, due to the soaring focus of financial institutions on providing a diverse range of digital solutions, such as digital transactions, digital trade management, and online banking, and burgeoning demand for securely storing and processing the data of customers.

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