Security and compliance concerns drive upward trend in data centre investment

Amidst the dynamic and fast-evolving landscape of digital threats and regulatory necessities, a notable 61% of IT decision-makers are planning to ramp up their data centre investment in the coming decade. This strategic shift is largely due to the mounting requirements to bolster security measures and stay compliant with tightening regulatory standards.

These are the insights from a new research report titled ‘Vision 2030: Identifying and navigating the emerging demands on your digital infrastructure’ by Telehouse International Corporation of Europe, a leading global data centre services provider. Telehouse surveyed 250 UK IT decision-makers on digital infrastructure challenges and opportunities over the next decade.

Emerging technologies such as artificial intelligence and the Internet of Things are creating newer and broader vulnerabilities, turning cybersecurity into a priority. Notably, a third (33%) of IT decision-makers identify cyber threats as the paramount concern affecting network uptime. Looking into the next decade, 30% believe that upholding security and ensuring regulatory compliance will be their biggest challenge by 2030.

The escalating security concerns and the intricate tapestry of regulations are steering businesses to re-evaluate their IT deployment strategies. The need for fortified security and stringent compliance is pushing 54% of IT decision-makers towards colocation services. This marks a robust 21% surge since Telehouse's 'Vision 2030' research in 2020. Three years ago, 33% of IT leaders leveraged colocation to bolster security and address legislative mandates.

Companies, while seeking enhanced security and compliance benefits, also perceive cost-effectiveness as a driver behind transitioning from on-premises models to colocation services. By 2030, a downward trend in on-prem deployment is expected, declining from 32% to 26%.

Mark Pestridge, Executive Vice President & General Manager of Telehouse Europe, said: “Today’s businesses are facing a pressing need to evolve and transition away from traditional digital infrastructures. The increasing threats in the cyber realm are a clear indicator of the financial and reputational risks at stake. This underscores the urgency to shift from potentially vulnerable on-prem setups to more robust data centre security solutions. As firms embrace technologies like AI, the ensuing demand for computational power and storage capacity will surge, making colocation data centres a logical and future-ready choice, both now and beyond 2030.”