Digital Infrastructure is critical to global connectivity

How we work, shop and socialise is fundamentally changing. As more and more of our lives move online the reliance on digital infrastructure is continuing to increase. These trends are expected to accelerate further with the roll-out of 5G technology along with the long-term changes in behaviour accelerated by or resulting from the Covid-19 pandemic outbreak in 2020.

Any business that is online, including some of the largest and most successful global companies, increasingly requires the internet and data usage and transfer to function.

A significant opportunity exists in the Digital Infrastructure market, owing to this exponentially increasing demand as well as limited supply.

The greater the demand for the internet, the greater the demand for the infrastructure to support it.

The demand for digital infrastructure is being driven by the following growth pillars:

  • Increase in the number of global internet users
  • Increase in the data consumption per user
  • Increased data transfer speed
  • Increased volume of data resulting in increased demand for data storage.

Since 2010, the number of internet users worldwide has doubled while global internet traffic has grown 12-fold, equivalent to growth of around 30 per cent. per year.

IEA (2020), Data Centres and Data Transmission Networks, IEA, Paris https://www.iea.org/reports/data-centres-and-data-transmission-networks

Between February and mid-April 2020, at the height of the Covid-19 containment measures, global internet traffic rose by almost 40 per cent.

IEA (2020), Data Centres and Data Transmission Networks, IEA, Paris https://www.iea.org/reports/data-centres-and-data-transmission-networks

Global internet traffic is expected to double by 2022. 

IEA (2020), Data Centres and Data Transmission Networks, IEA, Paris https://www.iea.org/reports/data-centres-and-data-transmission-networks

The amount of data produced and consumed is expected to quadruple by 2025

https://www.cbinsights.com/research/future-of-data-centers/

Demand for terrestrial and subsea bandwidth is growing so quickly that by 2026, 4 petabits of new capacity will need to be installed - 25 per cent. of total demand.

https://blog.telegeography.com/watch-bandwidth-demand-in-a-pandemic, Nov 2020

From 2020 to 2024, data gravity (as measured in gigabytes per second) is expected to grow by a compound annual growth rate of 139 per cent.

https://datacenterfrontier.com/study-data-gravity-will-guide-the-global-digital-economy/