Tech Predictions for the Data Center Industry in 2023

5 Jan 2023 by Colocation

The data center industry has been evolving since its inception due to the growing demands for data incorporation and scalability. The challenges facing the colocation sector for the future are to be dealt with by prioritizing sustainability and growth. Technologies with the ability to integrate more data by consuming less power and space are expected to dominate in the near future.

Let’s take a detailed look at some of the technologies and innovations being predicted in the data center industry for 2023.

Changes to Edge Computing

Edge computing is the process of shifting computing operations from the cloud or data centers to the edges of the network. This technology is beneficial for IoT applications, as it reduces latency and eliminates the need for a long-distance connection. Edge computing can also be used to process data locally and reduce the load on the cloud or data centers.

AI-enabled networking will become increasingly important for Edge Computing in 2023. AI-enabled networking will allow for dynamic routing and automation of tasks, enabling networks to self-heal and make decisions based on real-time data. This will help reduce the need for manual configuration and enable the data center to be more efficient.

5G networking will also become essential for Edge Computing in 2023, as it will enable faster data transmission speeds and more reliable connections. 5G networks will be able to handle more data than ever before, allowing for more powerful applications to be hosted at the Edge.

Edge computing is expected to remain an important part of data center technology in 2023, as it will enable businesses to process data and applications closer to the user. This will empower businesses to respond more quickly to user requests and provide a more reliable and secure infrastructure.

Automation Becomes King

Autonomous data centers are data centers that are self-managing and self-optimizing. This technology is expected to become more commonplace in the coming year as it enables data centers to operate with minimal human intervention. AI-driven data centers use artificial intelligence to automate various tasks within the data center. This technology can be used to optimize workloads, detect and analyze anomalies, and automate security measures. Data centers that weave artificial intelligence into their daily processes can expect to see more efficient operations and better performance.

Automation is expected to become more prevalent in data centers in 2023, with a focus on reducing operational costs and improving efficiency. This technology will be leveraged to automate processes such as provisioning, configuration, and monitoring, as well as for predictive analytics. This will enable data center providers to be more agile and responsive to customer needs by freeing up essential roles from performing repetitive or time-consuming tasks.

Increased Security

Data center security will continue to be a focus in 2023. Data center locations will need to be constantly updated with the latest security measures to protect customer data and assets. Organizations will focus on strengthening their security posture by implementing more advanced security protocols and technologies. This will include the use of encryption, multi-factor authentication, and other security measures to protect data and systems from unauthorized access and malicious attacks. Data centers will also employ advanced analytics to detect and respond to malicious activity in real-time.

Solution providers will also become increasingly reliant on disaster recovery solutions to protect against outages and data loss. Organizations will invest in solutions such as backup and recovery, high availability, and data replication to ensure their data is safe and secure in the case of an emergency.

Additionally, security analytics will be used to analyze large data sets and identify patterns that could indicate security vulnerabilities or malicious activity. These technologies will help organizations to detect and respond to threats quickly and effectively. Identity and access management (IAM) will also be implemented to ensure only authenticated users have access to the data center environment. Organizations will also use IAM to track user activity and monitor access to the data center.

Sustainability Becomes the Norm

Data center sustainability is a major focus for the industry, especially as the world continues to move towards renewable energy sources. Data centers were responsible for about 0.9-1.3% of the total global final electrical demand in 2021, with the number expected to grow exponentially in the coming years. To meet the growing demand for computing power, data centers must become more efficient, reduce their energy consumption, and use renewable energy sources.

Advances in technology will lead to more efficient cooling, improved power supplies, and better server utilization. Additionally, data centers will become more energy-efficient through the adoption of virtualization, cloud computing, and edge computing. According to the US Energy Information Administration, renewable energy sources accounted for 19.8% of the US' total electricity generation in 2021. This percentage is expected to increase in the coming years, with the International Energy Agency predicting that demand for renewable energy sources will continue to rise dramatically in the coming years. Data centers will be able to take advantage of this increased usage of renewable energy sources by investing in renewable energy sources such as solar, wind, and geothermal.

Data centers will become more sustainable through the adoption of green building practices. This includes the use of sustainable materials and energy-efficient building designs. Additionally, data centers will use energy-efficient lighting, HVAC systems, and efficient electrical systems.

Overall, data center infrastructure in 2023 are expected to be more efficient, use more renewable energy sources, and be more sustainable through the adoption of green building practices. These changes will not only help reduce the environmental impact of data centers, but also make them more cost-effective.


Data center facilities will continue to evolve in 2023 as new solutions are rolled out and older solutions are innovated and brought up to date. It’s important to remain tapped into all of the new developments in the data center sector and remain flexible when it comes to selecting the right solution for your business.

At, our goal is to make your colocation deployments as painless as possible by putting you in the driver’s seat. Customize your solution requirements with our easy to use project platform and have multiple providers compete for your business.

Author Colocation provides consulting and engineering support around colocation and has developed a platform for Datacenter Colocation providers to compete for your business. It takes just 2-3 minutes to create and submit a customized colocation RFP that will automatically engage you and your business with the industry leading datacenter providers in the world. provides a platform to view and research all the datacenter locations and compare and analyze the different attributes of each datacenter. Check out our Colocation Marketplace to view pricing from top colocation providers.  


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