Smart solutions like automation and Artificial Intelligence (AI) are changing the way we interact, work, and live. But with colossal amounts of data already being processed by smart devices and infrastructure every day, data centers and processing solutions need to make sure they can meet this exponentially growing demand.

It may not seem like it, but data is still an extremely under-optimized resource. Every day, more than 2.5 quintillion bytes of data are produced, yet only 1% of this data is fully utilized. As societies and economies increasingly rely on data for smarter decision-making and more efficient economic operations, more and more of it will need to be collected and utilized. This will place greater demands on underlying data architecture to facilitate this mass transfer of information. To rise to the challenge of ever-smarter societies, the world needs powerful data solutions.

At Alfanar Projects, we know firsthand how data can power economic development and create healthier and happier lives for people. We’re already engaged in building powerful data centers, and we’re proud to share our expertise in this area.

What does a smarter future look like?

Data is a crucial enabler of social and economic activity. From cloud-based technology that lets businesses operate seamlessly from around the world to innovative data solutions that help policymakers manage resources, data is already a vital tool for many – and is an integral component of the Internet of Things (IoT).

Combining the data capabilities of smart digital and physical devices, these interconnected networks produce, send, receive, and analyze vast amounts of information. From helping cities manage stressed resources and infrastructure to powering innovative forms of business operation, IoT is having a powerful impact on people’s lives.

One of the big drivers behind the evolution towards IoT is the number of new devices coming online which have the ability to process, analyze, and transmit data to other devices. By 2030, an estimated 30 billion smart devices will be online. While in principle, this growing network of smart devices will help make societies ever more connected, there are still a number of challenges to overcome before a truly interconnected IoT can be realized.

Firstly, different markets and regions practice different privacy and data collection regulations – meaning a lot of the produced data can only be used locally and may not be openly accessible. This siloed way of managing data means that public and private actors are far from operating at the same level when it comes to enabling seamless data exchange.

Without equally powerful data centers to manage these vast transmissions of information, such exchanges of data would be limited.

The importance of data centers

There is no exact way of knowing or estimating the amount of data that will need to be processed to fully unlock the potential of IoT. However, with an estimated 7.3 zettabytes of data being processed annually by IoT devices by 2025, it’s clear that data centers need to be able to manage soaring demand.

Data centers are physical infrastructure, but depending on the exact functions needed, there’s a range of different data center solutions tailored towards different needs. Hyperscale data centers manage large amounts of data, usually exceeding two megawatts, to predominantly cloud and service-based businesses undertaking substantial operations at a global scale. Enterprise data centers offer solutions to businesses, while edge data centers offer more decentralized solutions at a smaller scale, and on a more localized level.

From powering commercial solutions to helping people make easier and more productive choices in their lives, data centers are already enabling a wide range of solutions. At Alfanar Projects, we’re proud to say our powerful data centers are already helping our partners develop smart tech solutions. As part of the Saudi Vision 2030 that will help develop the KSA into a leading cloud services hub, Alfanar Projects will be building one of four hyper scale data centers which will accelerate the digital transformation in the region.

Unlocking the potential of data centers 

Cloud-based data processors were already an important economic stimulus to economies during the pandemic. Allowing organizations to continue functioning smoothly from different locations, many businesses were able to take advantage of the benefits of agile working. And as data centers power integrated and seamless working solutions across a wide range of different channels, platforms, and exchanges, even more, flexible solutions and decentralized organizational structures will come online.

Data centers can also help businesses and urban planners devise more intelligent solutions to city living. As new, smarter infrastructure comes online, planners can access more comprehensive data readouts, helping them manage infrastructure, mobility, and healthcare among other applications.

But to truly unlock the shared benefits of advanced technology, hyperconnectivity, and cutting-edge data analysis, data centers need to scale at the same pace as the technology that will use them. With the capability of powerful technology increasing all the time, without an equally powerful underlying data infrastructure that supports it, the potential applications of this tech will remain limited.

Moreover, as private and public sector organizations increasingly leverage data to power functions, it’s important that people continue to develop data skills to support this. Automation can streamline many processes, but combining these streamlined processes with equally skilled data users will maximize the ability of organizations to leverage data streams.

As organizations and policymakers lean on data to power new solutions in urbanization and economic development, data centers hold the key to scaling up their impact on how we live and work.