The data center network market in 2022


Data center networking integrates and consolidates multiple data center resources, allowing them to communicate across the entire network. The network aspect handles the switching, routing, and load balancing of data centers, allowing them to work together.

Interconnected data centers can include an organization’s data, applications, and user files, making processing and security more efficient.

See below for all about data center networking technologies and the data center networking industry:

Data Center Network Market

The data center network market was estimated at $17.8 billion in 2020. It is projected to maintain a compound annual growth rate (CAGR) of 13% over the analysis period from 2020 to 2027, reaching approximately $41.9 billion at the end of it.

The data center networking services market segment CAGR was adjusted to 13.9% over the analysis period. The solutions segment of the market is expected to reach $29.5 billion by 2027, following a CAGR of 12.7%.

Regionally, the data center network market is segmented as follows:

  • The US market was estimated at $4.8 billion in 2020, with a 26.9% share
  • The Chinese market is expected to grow at a CAGR of 16.9% over the analysis period, reaching $9.3 billion by 2027
  • Japan and Canada are expected to grow at a CAGR of 9.2% and 11.4% over the forecast period
  • In Europe, Germany is expected to maintain one of the highest CAGRs at 10.2%

By industrythe banking, financial services and insurance (BFSI) sector is expected to experience the highest levels of growth and consumption by 2025.

Other notable verticals in the market include:

  • THIS
  • Telecommunications
  • Detail
  • Education
  • Government
  • Health care
  • Manufacturing
  • Media and Entertainment

Data Center Networking Features

Since data center networking is the combination of multiple data centers, the functionality you get from the network depends on how the data centers are grouped together and how they communicate.

As more and more organizations migrate to the cloud, redesigned and modernized data centers and on-premises environments are proving dynamic enough to maintain cloud options.

Modern data center network designs are agile and include data processing in their layers to increase service speed.

“Data center networks are moving towards a simpler, more agile design. This means, in more technical terms, adopting backbone sheet designs for physical networks, as well as routed infrastructure in the underlays,” says Rajiv Khemanimember of the Forbes Technology Council.

“At the heart of this change, of course, is unprecedented data growth. … For data center networks, this means greater bandwidth consumption and the need to easily move data between data centers, so that it can be accessed from anywhere.

The basic components of data center networking are:

  • Waiters
  • Data storage
  • Switches
  • Routers
  • firewall
  • Network infrastructure
  • IT resources

Here are some data center network architectures used by IT teams:

3 Tier Data Center Network

The 3-tier Data Center Network (DCN) architecture design uses three layers of components with a core layer, a distribution layer, and a switch layer for network access. Layers can also be categorized as application, data, and user interface layers. This data center architecture best serves the lateral movement of data, entering the data center or leaving it.


The DCell data center architecture is a hybrid model. Using a server at the center of the architecture, it is connected to other data centers using mini-switches. The DCell approach is best for preventing bottlenecks during excessive data flow. Moreover, it has no single point or failure and can guarantee continuous availability.

Fat Tree Data Center Network

The Fat Tree data center network architecture can be considered an improvement over the DCN 3-tier design. Using a relatively large number of network switches, the Fat Tree architecture optimizes bandwidth utilization across the network cross section. As a switch-based architecture, the fat tree provides access to many layers of the network.

Benefits of Data Center Networking

Some notable examples include:

  • Increase network productivity
  • Improves data storage security
  • Simplifies data management
  • Improves hardware-software connectivity
  • Reduces costs
  • Reduces resource requirements
  • Facilitates remote access
  • Very reliable and resistant

Data Center Networking Use Cases

The concept of data center networking is flexible. Its many architectures allow it to be implemented in a wide variety of ways, depending on the needs and expectations of the company.


T-Systems offers end-to-end IT solutions to drive the digital transformation of its customers across a variety of industries and the public sector. Based in Germany, T-System offers its services in more than 20 countries around the world and has more than 28,000 employees.

Seeking to meet the high performance and availability expectations of its customers, T-Systems has consolidated its 45 data centers into 11 modern cloud-based data center networks.

Working with Juniper Networks, T-Systems was able to automate and strategize its data center network while it was virtually invisible.

“With a modern data center architecture from Juniper, we can implement automation to provision customer environments faster,” says Thomas WendeData Center Network Engineering Manager, T-Systems.

“Automation and orchestration were key requirements, as they would allow us to deliver services to customers and take advantage of new opportunities, such as multicloud, more quickly.”

Thanks to the automation implemented in its network of data centers, T-Systems was able to significantly reduce the rate of human error and increase processing efficiency.


Swisscom is one of Switzerland’s largest telecommunications services, with offerings ranging from cloud outsourcing to connectivity and data networking services. Swisscom has customers in industries such as hospitality, banking and healthcare and more than 21,000 employees.

Seeking to successfully migrate its customers’ data to a new data center, Swisscom needed to boost connectivity and reduce errors in its data centers. Together with IBM and using its Cloud Orchestrator portal solution, Swisscom built the connectivity services for its customers.

“We can now deliver all of these services – both fully managed services and cloud services – through our data center, using IBM Cloud Orchestrator, and provide options for our customers,” says Max HoesleProject Manager, Network Automation and Orchestration Team, Swisscom.

“In IBM Business Process Manager, we have many processes and all of them are automated. The operator can click on the services he needs for his customers, and the work process for these services is predefined in the BPM. »

Working with IBM, Swisscom was able to speed network provisioning from weeks to hours, eliminate human error and increase customer access to services.


UP42 is a marketplace and development platform for Earth observations and data analysis. Based in Germany, UP42 offers an extensive library of geospatial data and artificial intelligence (AI) algorithms that its customers can access via the company’s API with unlimited processing power.

As a one-stop-shop for data and information in geospatial domains, UP42 must maintain the accessibility of its data and provide its customers with the CPU and GPU computing power they have promised. Using Google Kubernetes Engine (GKE), UP42 was able to utilize Google Cloud’s global network of data centers and scale its resources based on demand.

“Wherever datasets may be located in remote parts of the world, we are able to analyze them for our clients globally. This simply wouldn’t be possible without Google Kubernetes Engine and Google Cloud data centers around the world.” said Barry NagelCTO, UP42.

“We simply distributed all of our processing needs across Google Cloud, scaled the infrastructure as needed, and provided lightning-fast execution.”

Working with Google Cloud, UP42 has been able to impress customers with increased computing power, facilitate access to data from around the world through a global network of data centers, and inspire new AI and business expansions.

Data Center Network Providers

Some of the leading providers of data center networking solutions and services in the market include:

  • IBM
  • Arista Networks
  • AWS
  • Broadcom
  • Intel
  • Fujitsu
  • Extreme networks
  • Cisco
  • Delta Electronics
  • Juniper Networks

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