REDWOOD CITY, CA., October 18, 2022 /PRNewswire/ — Current supply chain constraints and geopolitical and economic instabilities are not slowing the pace of digital infrastructure investment for the most connected businesses, according to a new report.
The latest Global Interconnection Index (GXI) 2023, an annual market study published by Equinix, found that the most ecosystem-connected companies – those that interconnect directly with partners to deliver their own digital services – have more expanded their digital operations over the past five quarters. than in the previous five years. On average, organizations connect to three times as many commerce ecosystem partners and metros, consuming more than twice the amount of interconnect bandwidth.1
As businesses reinvent themselves in the aftermath of the global pandemic, ecosystem density has become a catalyst for digital innovation, which continues to fuel the growth of interconnect bandwidth. According to GXI 2023, global interconnect bandwidth is expected to reach over 27,762 terabits per second (Tbps) by 2025, representing a five-year compound annual growth rate (CAGR) of 40%, or the equivalent to 110 zettabytes of data exchanged each year, enough bandwidth to support over 50 million self-driving cars each exchanging over 2,000 terabytes (TB) of data per year. This predicted growth shows how organizations are rethinking their business to implement scalable infrastructure on technology platforms.
“In today’s dynamic environment, every business is becoming a digital provider, requiring a new kind of digital infrastructure built sustainably around leveraging ecosystems to deliver seamless digital experiences. Those who put having a digital-first strategy, investing in a robust future in search of a business model and interconnecting with rich ecosystems, are ready to evolve, adapt and thrive,” said Steve MaddenVice President of Digital Transformation and Segmentation at Equinix.
Additional 2023 GXI Previews
- Digital growth continues: Interconnect bandwidth is expected to continue growing at a CAGR of over 35% across all regions and major cities through 2025.
- The transition to the periphery is accelerating: businesses and service providers are expected to interconnect to edge infrastructure 20% faster than core globally.
- Businesses are becoming digital providers: GXI 2023 predicts that 90% of Fortune 500 companies will become digital providers, selling and consuming digital services by 2025.
- The sustainable path to thriving digitally: All industries are leveraging digital to accelerate ESG goals, where 65% of global IT decision makers say they will only work with IT partners who can meet key carbon reduction goals.2 GXI 2023 predicts that the energy and utilities sector will lead the digital growth rate through 2025, as all organizations explore a sustainable approach to building and expanding their digital presence.
Industry perspective on the Global Interconnect Index
- Steve WhiteProgram Vice President, Channels and Alliances, IDC
“As businesses increasingly embrace digital-first strategies and seek new ways to differentiate themselves, the ecosystem plays an even more critical role. Organizations rely on ecosystems and digital infrastructure as the foundation to scale sustainably and create business value. To achieve these business outcomes, companies are interconnecting with customers, partners, and suppliers to accelerate collaboration and co-creation, and to deliver on commitments. in terms of sustainable development.”
Equinix (Nasdaq: EQIX) is the global digital infrastructure™ company. Digital leaders leverage Equinix’s trusted platform to bring together and interconnect core infrastructure at the speed of software. Equinix connects organizations to all the right places, partners and opportunities to scale with agility, accelerate the launch of digital services, deliver world-class experiences and multiply their value, all while supporting their sustainability goals.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the expectations described in these forward-looking statements. Factors that could cause such differences include, but are not limited to, risks to our business and results of operations related to the COVID-19 pandemic; the current inflationary environment; exchange rate fluctuations; rising electricity supply costs and general volatility in the global energy market; the challenges of acquiring, operating and building IBX® and xScale® data centers and the development, deployment and delivery of Equinix products and solutions; unforeseen costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; an inability to receive meaningful revenue from customers in newly built or acquired data centers; failure to enter into contemplated financing agreements from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding debt; the loss or decline in business of our major customers; risks relating to our taxation as a REIT and other risks described from time to time in Equinix’s filings with the Securities and Exchange Commission. In particular, see Equinix’s recent and upcoming quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix assumes no obligation to update the forward-looking information contained in this press release.
1 Interconnect bandwidth is the measure of private connectivity for transferring data between organizations.
2 Equinix 2022 Global Technology Trends Survey: Accelerating digital evolution, a critical time for transformation