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STL Partners says telecom edge data centers to grow 107% by 2025, driven by hyperscaler partnerships

STL Partners says telecom edge data centers to grow 107% by 2025, driven by hyperscaler partnerships

A new report published by STL Partners has estimated the global deployment of edge data centers by telecom providers will increase at a compound annual growth rate (CAGR) of 107% between 2021-2025.

STL’s forecast accounted for edge computing resources supported within the telecoms network, meaning inside facilities for mobile, fixed or converged networks. According to the forecast, there were only 86 network edge data centers available globally in 2021, the majority of which were located in North America.

However, this number is expected to grow at a rapid rate in the next four years, driven particularly by the establishment of edge data centers in Asia, which will reportedly contribute to 53% of total edge capacity.

Among the main factors behind the phenomenon would be the willingness of telecom operators to choose hyperscale cloud providers as key partners in establishing new edge infrastructure.

Total edge sites, by region

Source: STL Partners

In addition, STL Partners predicted that most of these new network edge data centers will be located at the transport aggregation layer.

The report is based on data modeled for 55 telecom operators and can be filtered by a number of criteria, namely type of workload, site location, primary network type, edge server owner, and region.

Together with the edge data centers growth forecast, the company has released a report analyzing the future capacity of network edge computing. The latter initiative is paired up with a model monitoring sites owned and operated by telecoms operators and two types of workloads: edge applications and core network functions.

STL Partners has also recently released a separate document suggesting that future edge infrastructures will be mainly multi-cloud.

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