Why is the data center market highly concentrated?
Date:2023-02-24
The data center market is highly concentrated due to the intense competition between major companies, such as Amazon Web Services, Google Cloud Platform, Microsoft Azure, IBM Cloud, and Oracle Cloud. These companies have a large market share and have strong brand recognition, making them difficult to dislodge. Additionally, data center services require a large amount of capital expenditure, meaning smaller companies are unable to compete in the same space. This leads to a natural market concentration among the major players.