The price of DC services will grow by 20-25%

The services of commercial data centers will become more expensive by 20-25% in the next two-three years, according to the estimate of Linxdatacenter’s analysts. The price increase will be caused by a variety of factors, which can be described as the deficit of infrastructure and the increasing demand on behalf of the business.

Demand for hosting and cloud services is growing in Russia despite the unstable situation. However, the growth rate of DC resources dropped from 10% to 5%: this is primarily caused by the increase in the cost of loans for IT infrastructure development and disruption of existing equipment supply chains.

“In the current situation on the Russian market demand for colocation and IaaS services grows faster than providers can satisfy it. Increase of the cost of loans necessary to finance new projects and of the equipment supply costs will affect the price of racks which will become available to customers in 2024. The usual annual 10-15% growth of DC services’ cost, which matched the inflation rate, now is not comparable to providers’ costs. Prices will inevitably grow,” states Roman Shulimov, Sales Director of Linxdatacenter.

According to him, supply deficit must be overcome as soon as possible, otherwise insufficient resources for data storage and cloud computing will become an impediment for development of the Russian economy.

The problem of decentralization of the DC market also remains unsolved: even during the years of stability providers did not build a sufficient number of data centers in the regions and most supply is focused in Moscow and Saint Petersburg.

Only such players as Rostelecom and Yandex can afford big infrastructure projects in the regions, but these projects are mostly aimed at satisfying the needs of the companies themselves. This problem cannot be solved without the government’s support, as development of regional data centers requires strengthening of telecom channels, engineering mains etc.

“To the companies whose business depends on computing infrastructure, I would recommend monitoring the market and news about new data centers: providers today openly share their investment plans. As a result of their policy, DCs currently being constructed are almost fully booked by the time they are put into operation,” notes Roman Shulimov.

Linxdatacenter forecasts that this situation will have positive impact on development of the Russian hardware and software vendors, and the current problems will be solved within three-four years: first with parallel import, and eventually with market adaptation and appearance of new infrastructure suppliers. Full recovery will take about ten years.