USD 213.55 billion
Data Center Construction Market Size, Share, Growth Analysis, By Type(Tier I, Tier II, Tier III, Tier IV), By Application(Electrical Infrastructure and Mechanical Infrastructure), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45D2060 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|Tables:
62
|Figures:
75
Data Center Construction Market Insights
Data Center Construction Market size was valued at USD 213.55 billion in 2022 and is poised to grow from USD 229.57 billion in 2023 to USD 409.43 billion by 2031, growing at a CAGR of 7.5% during the forecast period (2024-2031).
The growth of the data construction market is gradually increasing due to the renewal of construction of several data center facilities, which was suspended temporarily due to the COVID-19 pandemic. The emergence of new IT projects is also boosting the growth of the data center construction market. The market is also witnessing constant investments in constructing hyperscale facilities, which require IT infrastructure, cooling equipment, and power quality equipment. Furthermore, public cloud providers, like Alibaba and Google are also heavily investing in upgrading their current infrastructure, creating growth possibilities for the market. The construction procedure involves activities like planning, designing, and construction of a facility. The increasing data consumption and business demand for cloud computing are two major factors boosting the market growth. The emergence of multi-tenant or colocation facilities is also fueling the growth of the market for data center construction. Many companies related to various industries are moving towards cloud computing, boosting the demand for colocation services. Moreover, the cost benefits related to outsourcing storage requirements are also driving the multi-tenant facilities.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Tier Ill
Fastest Growth
Tier Ill
Growth Rate
7.5% CAGR
Global Data Center Construction Market ($ Bn)
Country Share for North America Region (%)
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Data Center Construction Market Segmental Analysis
Global Data Center Construction market is segmented by type, application, and region. Based on type, the market can be segmented into tier I, tier II, tier III, and tier IV. Based on distribution channel, the market is segmented into electrical infrastructure, and mechanical infrastructure. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Data Center Construction Market Analysis by Infrastructure
Based on infrastructure, the IT infrastructure is dominating the data center construction market with the largest revenue. Nowadays, companies are producing huge amounts of data. This is making it necessary to have a robust IT structure. The digital technologies are constantly advancing with innovative solutions like IoT devices, cloud computing, and big data analytics. Due to these businesses are increasingly depending on data centers so that they can support their operators, which is increasing the demand for IT structure. The IT infrastructure segment also consists of networking equipment, server, and storage. The transformation towards digitalization is also increasing the necessity for significant data processing and storage abilities. These can support latest technologies such as 5G, IoT, and smart solutions, contributing to the growth of data center constructions
Based on infrastructure, PD and cooling infrastructure segment is witnessing the fastest growth in the data center construction market. The PD and cooling infrastructure are growing exponentially because of the increasing necessity to maintain ideal temperature and humidity levels in the data centers. The PD and cooling infrastructure segment also have power distribution and cooling subsegments. The cooling systems are implemented in data centers for controlling the excess amount of heat that has been generated by the processors, servers, and other IT equipment. The cooling systems also assist in maintaining accurate humidity levels and protect the IT and electronic mechanisms from weathering. These perfect working settings guarantee efficient working of data centers and reduce the risks of possible downtime and data loss.
Data Center Construction Market Analysis by End Use
Based on end use, the IT & telecom segment is dominating the data center construction market with maximum market share. This segment is experiencing immense because of the increasing use of smartphones. Nowadays, people are also becoming more active internet users globally, which is boosting the growth of the segment. The constant advancement of 5G networks is also helping the segment to grow in the market. Furthermore, the implementation of Network Function Virtualization (NFV) and Software-Defined Networks (SDN) as applications is also growing. This can support OTT Platforms, M2M communication, and online gaming, which is also fueling the growth of the segment.
Based on end use, the BFSI segment is witnessing the fastest growth in the data center construction market. The BFSI sector is going through immense digital transformation. They have started adopting innovative solutions like mobile banking, online payments, and automated financial services. These initiatives need a flexible and advanced IT infrastructure, which can be provided by data centers. By offering on-demand computing resources and flexible configurations, data centers can strengthen their financial facilities to rapidly adapt to these changing customer requirements and market trends. Data centers enable BFSI facilities to centralize and combine their IT infrastructure, minimizing hardware redundancy and smoothening operations. This further improves utilization of resources, decreases energy consumption, and lowers operational expenses.
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Data Center Construction Market Regional Insights
North America is dominating the data center construction market with the largest market share. The growth of data center construction in North America is increasing exponentially. This is because the providers are developing advanced data centers with sustainable building. They are also trying to offer operations and business procedures that can fulfill the growing demands of hyperscale data centers. In January 2024, EdgeCore Digital Infrastructure made an announcement about completing a USD 1.9 billion debt financing agreement for their Mesa, Arizona, data center campus. Along with the completion of this deal, the water-neutral, LEED-certified campus will extend over 3.1 million square feet of space. It will also sustain 450 MW of crucial load and fulfill the requirement of present and future clients.
Asia Pacific is witnessing the fastest growth in the data center construction market. The data center construction market is growing rapidly in the region because of factors like increasing digitalization and growing adoption of cloud computing in various sectors. Furthermore, the demand for data centers is also increasing due to the rising adoption of cloud and data localization. The implementation of growing advanced technologies like 5G and the internet of things is also boosting the growth of the market in the region. Many prominent cloud service providers in China like Huawei Cloud, Tencent Cloud, and AliCloud are also investing towards the advancement of data centers. Beijing is also considered the largest data center hub in Asia as there are a growing number of data center colocation service providers in the region.
Global Data Center Construction Market By Geography
- Largest
- Fastest
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Data Center Construction Market Dynamics
Data Center Construction Market Drivers
Growing Usage of Cloud Computing
- The emergence of cloud computing services has boosted the necessity for more data centers to provide these services. Many companies are moving towards cloud-based solutions, which is rising the demand for data center construction. This is because of its advantages like better scalability, flexibility, and cost-effectiveness. This transformation to cloud computing has also increased the demand for hyperscale data centers that can easily manage huge numbers of virtualized workloads.
Growing Initiatives of Digital Transformation
- Several companies in various sectors are incorporating digital transformation strategies. This is helping them to enhance efficiency, innovation, and competition. This transformation has also accelerated the growing focus on upgrading IT infrastructures. It will help in supporting growing technologies like AI, machine learning, and edge computing. Data center building is playing a vital part in allowing these activities by forming the base for enhanced digital abilities.
Restraints
Growing Concern for Security and Cybersecurity
- It is important that the data center building considers the security and cybersecurity risks. It will help them to protect against physical dangers, unauthorized entry, and cyber-attacks. For securing crucial infrastructure and confidential data, data center buildings must be developed with robust physical security measures. These buildings must also have access restrictions, surveillance systems, and cybersecurity procedures in place for any kind of emergency.
High Initial Expenses
- Most of the time, data center building projects must deal with cost management problems, like increase in budget, growing material prices, and other unpredicted charges. The expense can also increase during the development of the procedure because of the intricacy of data center infrastructure and transforming technology requirements and regulatory compliance.
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Data Center Construction Market Competitive Landscape
The prominent companies in data center construction are increasingly emphasizing incorporating advanced technologies. It includes artificial intelligence, machine learning (ML), and IoT. These advanced technologies have the potential to improve the efficiency and sustainability of data centers. Many organizations in the sector are investing in research and development (R&D) to enhance energy-efficient construction procedures. They are primarily focusing on the utilization of renewable energy sources and innovative cooling systems to reduce carbon footprints. Furthermore, they are also increasing their market presence with the help of strategic alliances and acquisitions. This tactic is also helping them to make more profits with emerging growth potential of markets.
Top Player’s Company Profiles in Data Center Construction Market
- AECOM (US)
- Skanska AB (Sweden)
- Jacobs Engineering Group Inc. (US)
- Clark Construction Group, LLC (US)
- Hensel Phelps Construction Co. (US)
- Structure Tone (US)
- Mortenson (US)
- ISG plc (UK)
- Balfour Beatty plc (UK)
- M. A. Mortenson Company (US)
- Corgan (US)
- NCC AB (Sweden)
- Holder Construction Company (US)
- Gilbane Building Company (US)
- HITT Contracting Inc. (US)
- The Whiting-Turner Contracting Company (US)
- PCL Construction (Canada)
Global Data Center Construction Market Recent Developments
- In April 2024, AGM Group Holdings Inc., signed a MoU with RED DOT ANALYTICS PTE. LTD. The objective of this agreement was to develop AI hyper-connected and GPU-driven data centers.
- In September 2023, Digital Realty made announcement about the development of a Tier 4 facility in Rome, Italy. This was combined with company’s Platform DIGITAL extension strategy, which is strengthening customers to construct critical infrastructure.
- In March 2023, Vertiv made announcement about forming a distribution partnership with iPoint. The goal of the collaboration is to improve iPoint’s portfolio with strong IT structure and power solutions. These can be used in data centers and edge applications.
Data Center Construction Key Market Trends
- Emergence of Edge Data Centers: The growth of edge computing has accelerated the advancement of edge data centers. These centers are deliberately located closer to end-users and IoT devices for reducing latency and enhancing performance. These smaller, distributed facilities allow real-time data processing. They also support latency-sensitive applications such as self-driving cars and augmented reality. The edge data centers are also constructed with flexibility, energy efficiency, and modular designs in mind due to the changing edge computing needs.
- Growth of High-Density Computing: The high-density computer settings increase innovation in data center design. This is because it requires advanced cooling solutions and efficient power distribution systems. Businesses are focusing on workloads and introducing high-performance computing technologies like AI and machine learning. This is encouraging the data center building to focus on the design and implementation of cooling systems that can disperse heat from tightly packed server racks.
Data Center Construction Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global data center construction market is thriving in the IT sector. This is because of the increasing growth of technologies like IoT, big data analytics, and artificial intelligence. The demand for IoT devices and data centers are increasing. This is giving rise to the necessity for strong data exchange, data storage, and efficient data flow. Furthermore, the data center infrastructures are also advancing to adopt cloud computing and increase data consumption. Companies are also focusing on strategic mergers, partnerships, and acquisitions, which is shaping the market dynamics. Advancements in servers, edge computing, and IT equipment are boosting innovation in the market. Effective cooling equipment controls temperature and humidity levels, reduce various expenses and security infrastructure costs.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 213.55 billion |
| Market size value in 2031 | USD 409.43 billion |
| Growth Rate | 7.5% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Data Center Construction Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Data Center Construction Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Data Center Construction Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Construction Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Construction Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Construction Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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