DATA CENTER INFRASTRUCTURE SPEND
FIGURE 1: Data reflects typical tech companies’ spend on data center infrastructure, including both greenfield and colo/leased
locations. Source: Proprietary data collected, researched, and analyzed by the author.
$7B
2014 2015 2016 2017 2018 2019 2020 2021 2022
April/May/June 2020 I 39
MASS GROWTH
OF THE CONNECTOR
The Infrastructure Spend
Following is an in-depth look at the
connector market, starting with typical
data center infrastructure investment
by several of the largest tech
companies. Figure 1 shows the breakdown
of cost by category.
Connected infrastructure components—
optical fiber and copper
cabling, cabling infrastructure including
cable trays, racks, and patch panels—
and installation labor comprise
65 percent of total data center spending.
It typically costs $300 to $400
million to build one data center.
As some campuses are home to five
or more data center buildings, the
total investment required from tech
companies is staggering.
The Market Forecast
Demand for connected infrastructure
continues to grow. Figure 2 shows
FIGURE 2: The market for connected infrastructure is expected to grow to at least
$17 billion by 2022. Note the trend of optical fiber cabling’s continued growth while
copper flattens. Source: Data and graph derived from Market Research Future,
Structured Cabling Market Research Report-Global Forecast to 2022 (January,
2018) and Markets and Markets (https://www.marketsandmarkets.com/
PressReleases/structured-cabling.asp).
Building Infrastructure 35%
• Data Center Construction
• Colo/POP Lease
• Utilities
• Facilities Operations
• Maintenance
Installation & Testing
Labor 20%
• Tray & Rack Installation
• Cable Pull & Dressing
• Termination & Splicing
• Cable Testing & QC/QA
•
Copper Cabling 5%
• Cat 5 & Cat 6,
Cables & Connectors
Cabling Infrastructure 10%
• Cable Tray & Racks
• Splice Cabinets & Patch Frames
• Patch Panels & Cassettes
Optical Fiber Cabling 30%
• Singlemode & Multimode
• OSP & ISP Cabling
• HD & Structured Cabling
• Jumpers & Connectors
• Splicers & Testers
That is a whopping 65 PERCENT of data center
spend attributed to connected infrastructure!
the market forecast that includes
optical fiber and copper cabling,
as well as cabling infrastructure
components. In 2014, the market
was valued at $7.72 billion. It is
expected to reach $13.13 billion
by 2020. That is a growth rate of
9.0 percent between 2015 and 2020,
reaching more than $17 billion
by 2022.1
Compound Annual Growth
Rate of 9%
2012 2013
Fiber Cabling
$13B
$17B
Cabling Infrastructure Copper Cabling
/