Which data centre can be classified as an Edge data centre? Uptime Institute explains

What is the Uptime Institute's definition of edge data centres?

An edge data centre is a relatively small facility designed for a few hundred kilowatts of IT load, which allows data to be processed in close proximity to local end users and their devices.

Why is the Edge concept gaining popularity?

Edge data centres provide similar capabilities as large data centres, but take up less space and are close to end users. Their main advantage is that they can process data with minimal latency. Many modern services and applications rely on data that must be quickly transferred to users' devices for correct operation and functioning. Data that is not critically tied to processing time is sent to large data centres for historical analysis and storage.

Vertiv analysed more than 100 edge computing use cases and identified four archetypes:

- Big data that does not make sense to transmit across the entire network, overloading it (for example, real-time inventory data)
- critical latency data for users who optimise the process of using data (e.g. video content, augmented/virtual reality)
- Critical latency data for machine processing, which optimises data processing by other systems and corresponding actions (smart cities, road infrastructure)
- Critical data that directly affects human life and health (autonomous cars, smart drones, smart grids)

Trading operations on exchanges, delivery of high quality video content, autonomous cars - for them, minimal delay in data processing and transmission is critical, because a lot of money or even the lives of users are at stake. There is more and more data, it is more diverse, and the processing speed and variability are increasing. Companies use data to find new business growth points through the use of artificial intelligence and machine learning.
Hybrid work models, automation, the Internet of Things, augmented and virtual reality technologies, the metaverse, and others are driving the development of edge data centres.

5G networks enable ultra-fast processing and delivery of data to users in real time. While cloud computing can take up to 100ms to process, 5G takes less than 1ms. Of course, 5G will take some time to deploy, which is why the edge is an intermediate stage where information processing takes 10 to 50 ms, depending on the location.

Advantages of Edge

- Reduced latency. Faster data processing in less time
- More autonomy. Edge applications allow you to perform predefined actions on which business processes depend
- Security. Data is stored and protected locally, reducing the risk of a global cyber attack
- Scalability. Organisations can scale distributed networks without concentrating all resources in one place. It is much easier to deploy a micro data centre than to build a hyper data centre.
- Legal compliance. By storing and processing data locally, organisations comply with the requirements of local legislation in the regions where they operate
- Cost savings. Lower costs for networks and data storage.
- Reliability. Edge increases business security in the event of recovery from the impact of force majeure, including natural disasters.

Edge data centres can be deployed and launched within a few days or weeks - they already have all the climate solutions built in, as well as the necessary infrastructure for power supply, networking, security and monitoring systems.

Edge data centre market to double in the next 5 years

Over the next 5 years, the edge data centre market will grow by 17% annually and reach $18 billion in 2026. The largest markets will be the US, Asia and Europe. This forecast was made by analysts from ResearchAndMarkets.com.
Gartner analysts predict that 50% of company data will be generated outside data centres in 2023.

In its survey in March 2022, the Uptime Institute tried to investigate the models and depth of use of edge solutions by large data centre operators. 89% of respondents said they would definitely use edge data centres in their business in the next two to three years.

The Uptime Institute notes a steady increase in interest in distributed systems and, accordingly, demand for modular data centres, micro data centres and prefabricated data centres.