How to Prepare Your Colocation Facility for 5G

Data volume has expanded exponentially over the past year and a half, causing a huge spike in demand for data center capacity. This data boom is driving organizations to abandon their traditional on-premises data centers in favor of the convenience and economies of scale that colocation data centers provide.

Accelerated digital transformation, widespread adoption of remote work environments and increased reliance on the internet during the height of the COVID-19 crisis created the first massive wave of data. But now that 5G is poised to hit the mainstream, will there be a second data explosion? And, to that end, are existing colocation data centers prepared to handle an even greater volume of data? 

The short answer is, it depends.

What is 5G?

5G is the fifth generation of broadband cellular and wireless networks. It’s designed to connect people, machines, objects and devices with hyperefficient connections that make it easy and fast to move large amounts of data between locations.

But multi-gigabit peak data speed isn’t 5G’s only differentiator. When the rollout is complete, 5G users will have access to high availability, increased reliability, massive network capacity and ultra-low latency, all of which will serve to empower new user experiences and connect new industries.

What impact will 5G have on traditional data centers?

How 5G will impact data centers depends on a few factors: 

Location

5G is expected to push Internet of Things (IoT) and smart device development into overdrive, with experts predicting more than 30 billion IoT connections by 2025. To minimize latency issues and provide the best user experience, data centers will need to expand outside of their central hubs and add edge facilities.

Age

Technology changes rapidly, and 5G networks require the latest technology to support lightning-fast connections. Existing data centers that are more than seven years old are considered out of date, with regard to managing 5G workloads, and will require significant updates. 

5G Compatibility

As mentioned above, many traditional data centers that were built more than seven years ago don’t have the technological capabilities to handle 5G networks. These facilities will need to be retrofitted to support 5G, including:

• Network upgrades
• Changes to switching and routers 
• Network functions virtualization (NFV)
• Software-defined networking (SDN)

Where do colocation data centers fit in the 5G equation?

To support the anticipated expansion of 5G into mainstream markets, colocation data centers may also require some of the retrofits discussed above. However, colocation facilities also have several advantages over traditional data centers: 

Edge Accessibility

Colocation data centers can place facilities closer to the edge. This provides tenants regional points of access for centers of data exchange where data can be transferred, stored and processed close to end users, which decreases latency.

Affordability

Small and medium-sized businesses that can’t afford large-scale data transmission and processing will be able to turn to colocation services to piggyback their traffic onto the high-powered data processing footprint.

Flexibility

Colocation data centers let companies rent scaled-down server infrastructure in multiple facilities. This is so they can process and store data in close proximity to their end users, while still maintaining their primary data center near their primary user base. 

How can modular construction help colocation data centers prepare for 5G?

Modular data center construction techniques are ideal for colocation data center owners who want to expand existing facilities or build new ones to accommodate increased capacity and edge computing demands from the widespread rollout of 5G.

Unlike traditional stick-built construction methods, a modular approach lets you start with any size footprint, then scale up as needed to increase floor space and compute power for your tenants. The compact size of the finished product also allows for cost-efficient delivery to your site, even if it’s off the beaten path.

Because modular data centers are manufactured in a factory setting, the time to build and deploy is often 30 percent less than the time it takes to construct a new facility on-site.

This shorter time frame is a huge benefit for facility owners who want to establish a presence quickly in secondary and tertiary markets. This is so they can expand their offerings to clients, in addition to the central facility, while being 5G capable as soon as it becomes available in the region.

Is your colocation data center 5G-ready?

The global pandemic set in motion a wave of data generation that data center owners are scrambling to accommodate. As 5G becomes available to more users, organizations will continue to look for ways to quickly and cost-effectively increase capacity in both primary and edge markets. 

Download Key Takeaways from CBRE's 2021 Data Center Predictions and the Impact on Colocation to learn where the data center industry is heading and where colocation facilities fit in the big picture.