Energy sector bandwidth forecast to grow 48%

Concept images of bandwidth cables
Image: Shutterstock

Equinix has published Volume 5 of its Global Interconnection Index (GXI), an annual report of industry research that forecasts how organisations are using interconnection bandwidth and distributed infrastructure to shape and scale the global digital economy. 

GXI is the standard for measuring the growth in the digital economy and gives leaders insights to determine how industry shifts will impact their digital business. It measures 14 industry segments, including the energy and utility sector.

Globally, bandwidth is forecast to grow to 21,485Tbps by 2024, which is 44 per cent Compound Annual Growth Rate (CAGR). The only infrastructure that can support the transfer of this much data is interconnection, which is measured in terabits per second (Tbps).

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The energy and utility sector is forecast to grow at a 48 per cent CAGR in Asia-Pacific, with industries accounting for growth of bandwidth to hit 2,111Tbps, driven by continued digitalisation of operations and services, and deploying infrastructure close to the edge. This sector was an industry previously lacking in earlier volumes, which illustrates how it is now accelerating digital transformation.

Further Australian insights for 2020-2024 are:

  • Sydney interconnection bandwidth growth is forecast to 661Tbps, which is 43 per cent CAGR
  • Melbourne interconnection bandwidth growth is forecast to 55Tbps, which is 50 per cent CAGR

The report’s accuracy is illustrated by Volume 1 (released in 2017), which forecasted that by 2020 bandwidth growth would reach 4,991Tbps globally. In 2020 it reached 4,993Tbps, which translates to 98.8 per cent accuracy.

“While COVID has forced businesses to innovate in many ways, by both expanding existing and introducing new digital services, the infrastructure underpinning these services must keep pace,” Equinix senior vice president of marketing Claire Macland said.

“As a result, savvy businesses are now moving four times faster than pre-pandemic levels in deploying this necessary digital infrastructure.”

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Equinix Australia managing director Guy Danskine said, “Australian companies that have adopted a comprehensive digital strategy as a core business pillar—connecting with and leveraging digital platforms with partners, ecosystems and customers, consistently emerge as disruptive market leaders. Adopting digital platforms and services is essential to achieve agility and the resilience that is required to outpace and out-innovate the competition. 

“We’re seeing more organisations distribute edge infrastructure into carrier-neutral locations, closer to the end points where business is happening. In Australia, Melbourne continues to emerge as a strategic metro where digital leaders continue to deploy near customers, employees and their operations.” 

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