Predictions You Need to Know to Stay Informed

It’s no secret 2022 has been a challenging year for the data center industry. Inquiring minds have been impatiently awaiting the top predictions for 2023 as they plan and strategize for a successful Q1 2023. This industry is indeed experiencing a unique time, but as our friends at datacenterHawk mention in their recent podcast, the data center industry is still very young. We’re excited to experience a successful and abundant 2023.

With that sigh of relief, let’s talk through the ebbs and flows of the industry. Here’s what the experts are anticipating for the coming year: 

Supply and Demand

The longstanding battle of supply and demand will continue to make an appearance in 2023. Equipment is still expected to be difficult to come by and several experts anticipate a continued increase in price on the supply side. With lead times extending far beyond what we could have ever imagined, the overwhelming response is that it needs to get worse before it gets better, but it will get better. 

Experts note that part of the industry demand is expected to fall off. This change can be attributed to the economy, as several tech and insurance companies may pause some of their plans. Although there’s no magic button to fix this issue, this is only temporary, so we urge you to stay hopeful for 2023. 

The Exciting World of AI 

Fascinating software will continue to emerge as the industry leans into adopting more of this technology. AI plays a crucial role in data center efficiency. We learned, Google was able to cut down 40% of its data center’s cooling costs just by controlling the cooling infrastructure through AI programs. AI gives facility managers a clear picture of the health of all the data center components. That way, they can repair or replace components that need attention.” We’re excited to see how this artificial intelligence will expand as we enter the new year. Staying up to date with the latest technology allows us to continue improving our top-notch services for our clients we appreciate so much. You will always be in the most capable hands at 165 Halsey Street. (The same applies if you have ever worked with our incredible Remote Hands technicians!)

The Hustle and Bustle Continues

Despite what fear-mongering articles may share about the data center industry’s challenges, growth is inevitable. In fact, “data center jobs are expected to increase by 2% through 2023 and 3% by 2025.” With the increased technical work, additional professionals will be needed on-site to project manage, monitor, and troubleshoot. We hope that with this increase in job availability, our industry will see a rise in women holding these positions. As proud supporters of women in tech, this is a topic we feel strongly about, so if you missed our recent Women in Digital Infrastructure blog, be sure to catch up.

Our Main Takeaway

We hope you enjoy this wrap-up of 2023 predictions. 165 Halsey Street is proud to say we are in a unique position. Despite the ebbs and flows of the industry, we continue to stand strong and provide safe, convenient, and affordable interconnection. Our unique, customized solutions, paired with our top-notch customer-centric service continue to place us at the top. 165 Halsey Street has been operating a carrier-neutral colocation business for over 24 years, continually placing our customer’s needs at the forefront. We have the power in place and are ready to provide it to you now. For more information on leasing and availability, reach out to our team of experts here.