What is edge computing and edge data centres?

Edge computing processes data closer to where it is generated rather than sending it to a centralised cloud or enterprise data centre. Edge data centres are smaller facilities (typically 0.5-5 MW) deployed in metropolitan areas to reduce latency for applications that require near-real-time response: autonomous vehicles, IoT processing, content delivery, 5G network functions, and augmented reality. Edge facilities are typically Tier II or III, optimised for low latency rather than massive scale. The edge market is projected to reach $317 billion by 2028, driven by 5G rollouts and real-time AI inference at the network perimeter. Key edge operators include EdgeConneX, DataBank, and Vapor IO. Edge complements rather than replaces centralised hyperscale - most architectures use both tiers.