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Technology Stocks : Investing in Exponential Growth

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From: Paul H. Christiansen2/7/2018 10:02:32 AM
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Data Centers to 5G: Bring It On!



There’s no doubt that 5G will affect all parts of the network – from end users, to both man and machine (things) to data centers, and everything in between. In fact, according to IHS Economics and IHS Technology’s report from 2017, 5G is expected to lay the groundwork for technologies such as making self-driving cars more responsive to traffic changes or IoT sensors becoming more intuitive and integrated into smart buildings and smart cities. The same report finds that it has the potential to create a staggering $12.2 trillion in global economic output by 2035. To put that number in perspective, it “is nearly equivalent to U.S. consumer spending in 2016 and more than the combined spending by consumers in China, Japan, Germany, the United Kingdom, and France in 2016.”

While 2035 may feel like a world away, data centers are already feeling the pressure to prepare. Data will need to be hosted and streamed at significant higher speeds, volumes, and lower latencies if the full promise of 5G is to be successfully commercialized, at scale.

We have already seen 5G trials and major announcements in North America from from prominent carriers that include Verizon and AT&T. On the global stage, the upcoming 2018 Winter Olympics are expected have 5G front and center. South Korea, which is already an earlier innovator in the space, will offer limited 5G services at the Winter Olympic games in PyeongChang. For the 2020 Olympic Games, Japan plans to have 5G up and running in designated areas.

Countries across the globe are aggressively looking to roll out 5G services. According to the GSMA, “5G could account for as many as 1.4 billion connections by 2025, or about 20 percent of the world’s population.”

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