Market Overview:
The Global Data Center Construction Market Size Was Valued At USD 251.37 Billion In 2022 And Is Projected To Reach USD 379.97 Billion By 2030, Growing At A CAGR Of 5.3% From 2023 To 2030.
A sophisticated world of data center is harnessed for the management of computer systems and IT-related equipment, featuring a design that facilitates airflow beneath its floors and tiles. The surge in data volume is propelled by heightened internet usage, intricate software development and deployment methods, and the escalating count of connected devices on public and private networks.
The process amalgamating to establish a data center facility is termed data center construction, aligning operational specifications with architectural standards. The surging information technology sector acts as the driving force behind the expansion of the global data center construction market. This endeavor involves the incorporation of cutting-edge technologies such as artificial intelligence, big data analytics, and the Internet of Things, fostering innovative solutions. Over the projected period, this facet is poised to invigorate growth within the global Data Center Construction market, catalyzed by an evolving technological landscape and mounting demand for advanced data management infrastructures.
Top Key Players for Data Center Construction Market:
Turner Construction Company, DPR Construction, AECOM, Schneider Electric, M. A. Mortenson Company, Arup, Brasfield & Gorrie, L.L.C., CORGAN, Currie & Brown Holdings Limited, Fortis Construction, Gensler, Holder Construction Group LLC, Jacobs, ROGERS-O’BRIEN CONSTRUCTION COMPANY LTD, Skanska, Structure Tone Organization, The Boldt Company and Other Major Players.
Market Dynamics and Factors for Data Center Construction Market:
Drivers:
Rise in The Data Consumption from Diverse Industries
The proliferation of data consumption across diverse verticals stands as a compelling driver within the data center construction market. This surge is fueled by multifaceted factors, including the exponential growth of internet usage, burgeoning software development and deployment practices, and the proliferation of interconnected devices in both public and private networks. As industries increasingly rely on data-intensive applications, cloud computing, and digital services, the demand for robust and scalable data centers escalates.
Opportunities:
Rise in Connected Devices
As more devices become interconnected through the Internet of Things (IoT) and other technologies, the demand for efficient data processing, storage, and management escalates. This surge in data generation necessitates the construction of advanced data centers to accommodate the influx of information, fostering innovation in data center design, technology integration, and sustainability practices. This opportunity not only propels market growth but also encourages investments in cutting-edge solutions that cater to the evolving landscape of interconnected devices.
Segmentation Analysis of the Data Center Construction Market:
By Type, Tier 3 data centers dominate within the market which is due to heightened redundancy strategies, addressing the growing demand for high-performance computing and expanded storage capacities. Tier 3 standards, favored by media providers like Netflix and Facebook, alongside financial and service industry incumbents, seize the spotlight. This dominance is underscored by tier 3 design's power backup capabilities, enhanced cooling efficiency, and workload optimization through continuous monitoring and equitable distribution.
By End User, IT and telecom holds the largest market share. Despite pandemic-induced disruptions leading to postponements in facility construction, strategic recovery initiatives and growing economic stability are set to reinvigorate demand. As enterprises gradually return to on-site operations, data center expansion plans are expected to resume, specifically among larger enterprise data centers. The steadfast expansion strategies of hyperscalers, is driven by sustained investments in the public cloud. Also, End-user spending was more than $200 billion in 2021, which was a 6% increase from 2020.
Regional Analysis of the Data Center Construction Market:
The North American region has its dominance in the data center construction market, capturing a substantial revenue share exceeding 40% in 2022. This dominance is attributed to robust investments in hyperscale projects, underpinned by a sophisticated network infrastructure and the presence of major cloud service giants like Amazon.com, Inc., Google, and Facebook. As these companies pioneer mega facility construction for enhanced processing capacities and data storage, North America emerges as a key growth hub, offering fertile ground for the expansion of the data center construction market.
Key Industry Development:
July 2022, Reputable data centre service providers have awarded L&T Construction's Buildings & Factories division a contract to build data centres with a combined capacity of 10.8 MW in Mumbai and Navi Mumbai, India.
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
