E D I T O R ' S Q U E S T I O N

While smaller data centre operators do compete with hyperscalers in some cases , there can be value for both in working together in historically vexing areas like energy .

The growth of hyperscaler services also enables smaller operators to create niche markets through specialised services and cater to environmentally conscious clients .

For non-hyperscale ( retail ) data centres and hyperscale-focused data centres , here are six strategic adaptations to the dominance of hyperscale services and own-build infrastructure :

1 . Power agreements with grid operators : Data centre operators can help hyperscalers with their time-to-market needs through advanced agreements on power commitments in areas with future build prospects . This would lower the wait time for a grid connection , which in some areas , including Northern Virginia , is approaching seven years .

2 . Specialisation and niche markets : Instead of competing head-on with hyperscalers , smaller operators can focus on niche markets where they can offer specialised services . This could include providing ultra-low latency services for financial sectors , compliancefocused storage for healthcare or government data , or localised data processing for IoT applications in smart cities .

3 . Edge Computing : With the rise of IoT and the need for real-time data processing , there ’ s a growing demand for Edge Computing solutions . Data centres can shift towards or incorporate Edge Computing , placing data processing closer to where it ’ s generated . This reduces latency , decreases bandwidth use and can be more efficient for certain applications , offering a service that hyperscalers might not provide as effectively from their centralised locations .

4 . Product expansion / Enhanced service offerings : Traditional data centres can transition from mere infrastructure providers to service providers by offering managed services , cybersecurity solutions , Disaster Recovery and bespoke IT consultancy . By doing so , they add value beyond what hyperscalers typically offer directly , focusing on customer service and tailored solutions .

5 . Sustainability initiatives : As environmental concerns grow , smaller data centres can differentiate themselves by focusing on green technology . While hyperscalers are often criticised for their large environmental footprint , smaller facilities can invest in renewable energy , advanced cooling technologies and sustainable practices to attract ecoconscious clients .

6 . Collaborative ecosystems : Building partnerships with hyperscalers instead of competing with them could be beneficial . This might involve becoming a part of a larger ecosystem where they handle overflow , specialised tasks , or act as regional partners for global giants , thereby gaining from the hyperscale trend rather than falling victim to it .

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