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Data center construction market is growing rapidly due to increasing demand for energy-efficient data centers. Therefore, market players are focused on developing green data centers that aids in reducing carbon footprint. Moreover, the need for data storage facilities are expected to boost demand for data center construction.

In 2021, data center construction market is expected to generate a revenue of US$ 53,870.5 Mn and is expected to reach US$ 95,388.9 Mn by 2028, exhibiting a CAGR of 7.4% over the forecast period from 2021 to 2028.

Global Data Center Construction Market - Impact of Coronavirus (Covid-19) Pandemic

  • Data center owners and operators are implementing remote management of data center infrastructure post COVID-19 pandemic, in order to monitor data center assets remotely
  • The rising trend of work-from-home (WFH) and rise in data and network accessibility are generating demand to construct additional data centers. Therefore, rising data & network accessibility and remote working during the lockdown period, there is increase in demand for data center services from end-use industries such as IT and telecom, government, media and entertainment and others.

North America is expected to hold dominant position in the global data center construction market during the forecast period.

Statistics:

North America held dominant position in the global data center construction market in 2020, accounting for 34.7% share, in terms of value, followed by Europe and Asia Pacific.

Figure 1: Global Data Center Construction Market Share (%), By Region, 2020

Data Center Construction  | Coherent Market Insights

Among regions, North America held dominant position in the global data center construction market in 2020 and is expected to retain its dominance throughout the forecast period. Rise in investments in metro infrastructure by government and corporate sector and increase in demand for network and connectivity solutions by users such as IT and Telecom government, media and entertainment have created opportunities for players in the construction of data centers market. These network and connectivity solutions deliver reliable and faster data connections across data centers in the U.S. For instance, in April 2020, MOX Networks, LLC entered into a partnership with Cologix, in order to expand its connectivity solutions. MOX Networks is connected to Cologix Minneapolis data centers and offers various capacity services to all Cologix customers for extending capacity services to data centers of different cities in the U.S.

Europe is one of the leading markets for data centers, and it is expected to grow significantly in the coming years. According to Coherent Market Insights analysis, in 2018, around 70% of the data traffic was generated from France, Spain, U.K., Germany, and Italy. According to the Data Economy Report, UK-based data centers are expected to store data worth over US$ 135.0 Bn annually by 2025.

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Data Center Construction Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2020: US$ 50,520.5 Mn
Historical Data for: 2017 to 2019 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 7.4% 2028 Value Projection: US$ 95,388.9 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, South Africa, Rest of Middle East, and Africa
Segments covered:
  • By Construction Type: Electrical Construction, Mechanical Construction, and General Construction
  • By Enterprise Size:  Small & Medium Enterprises and Large Enterprises
  • By Tier Standards: Tier 1 & Tier 2, Tier 3, and Tier 4
  • By End Use Industry: BFSI, IT & Telecom, Defense & Government, Education, Healthcare, Utilities, Power & Energy, Media & Entertainment, and Others
Companies covered:

DPR Construction, Inc., Turner Construction Co., Holder Construction Company, Hensel Phelps Construction Co, Balfour Beatty US, Helix Electric, Sudlows, Kraus Anderson Construction, The Beck Group, PCL Construction Enterprises, The Walsh Group, Hill International, and Engineered Structures, Inc. (ESI).

Growth Drivers:
  • Increasing demand for data centers to store large volume of data
  • Adoption of large scale data centers
Restraints & Challenges:
  • Lack of skilled workforce

IT & Telecommunication segment is expected to drive the market growth during the forecast period

Among end use industry, IT & Telecom segment is expected to hold dominant position in the global data center construction market during the forecast period. This is attributed to the increasing demand for digital business and urbanization, which is expected to drive the segment growth during the forecast period.

Figure 2: Global Data Center Construction Market Value (US$ Mn) Analysis and Forecast and Y-o-Y Growth (%), 2017 - 2028

Data Center Construction  | Coherent Market Insights

The global data center construction market was valued at US$ 50,520.5 Mn in 2020 and is expected to reach US$ 95,388.9 Mn by 2028 at a CAGR of 7.4% between 2021 and 2028.

Major players operating in the global data center construction market include DPR Construction, Inc., Turner Construction Co., Holder Construction Company, Hensel Phelps Construction Co, Balfour Beatty US, Helix Electric, Sudlows, Kraus Anderson Construction, The Beck Group, PCL Construction Enterprises, The Walsh Group, Hill International, and Engineered Structures, Inc. (ESI).

Data Center is a facility used to manage IT-related computer systems and equipment. The construction of the data center allows for air circulation under the floor and tiles. With significant growth in internet usage, improved software development and installation system and an increase in the number of devices connected to public and private networks followed by a growing amount of data. The need to store and process this amount of data has encouraged companies to use advanced storage and processing solutions and thus run a data center.

Market Dynamics

The rising demand for data center construction across end-use industries such as education and healthcare is growing rapidly due to the increase in data generation and rising demand for data storage facilities by end use industries. This is one of the major factors that is expected to fuel growth of the data center construction market.

Large data centers include servers at a larger scale as compared to small and mid-size data centers. Increasing adoption of cloud services by enterprises is expected to boost demand for large data centers in the near future.

This is further expected to create growth opportunities for electrical and mechanical construction professional as the demand for electrical and mechanical systems will increase, which will further boost demand for data center construction market.

Large scale data centers are mainly used by big technology players and media and content providers such as Facebook, Google, Netflix, and others, as there is increase in usage of social media platforms and increase in internet traffic by end users that leads expansion of data center facilities across the globe.

Key features of the study:

  • This report provides in-depth analysis of the global data center construction market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2021– 2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by the leading  market players
  • It profiles leading players in the global  data center construction market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, market capital, key developments, strategies, and future plans
  • Companies covered as a part of this study DPR Construction, Inc., Turner Construction Co., Holder Construction Company, Hensel Phelps Construction Co, Balfour Beatty US, Helix Electric, Sudlows, Kraus Anderson Construction, The Beck Group, PCL Construction Enterprises, The Walsh Group, Hill International, and Engineered Structures, Inc. (ESI).
  • Insights from this report would allow marketers and management authorities of companies to make informed decisions regarding future product launches, product upgrades, market expansion, and marketing tactics
  • The global data center construction market report caters to various stakeholders in this industry including investors, suppliers, managed service providers, third-party service providers, distributors, new entrants, and value-added resellers
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global data center construction market

Detailed Segmentation

  • Global Data Center Construction Market, By Construction Type:
    • Electrical Construction
    • Mechanical Construction
    • General Construction
  • Global Data Center Construction Market, By Enterprise Size:
    • Small & Medium Enterprises
    • Large Enterprises
  • Global Data Center Construction Market, By Tier Standards:
    • Tier 1 & Tier 2
    • Tier 3
    • Tier 4
  • Global Data Center Construction Market, By End Use Industry:
    • BFSI
    • IT & Telecom
    • Defense & Government
    • Education
    • Healthcare
    • Utilities, Power & Energy
    • Media & Entertainment
    • Others
  • Global Data Center Construction Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By Country:
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Latin America
      • By Country:
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • By Country/Region:
        • GCC Countries
        • South Africa
        • Rest of Middle East and Africa
  • Company Profiles
    • DPR Construction, Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments/ Updates
    • Turner Construction Co.
    • Holder Construction Company
    • Hensel Phelps Construction Co.
    • Balfour Beatty US
    • Helix Electric
    • Sudlows
    • Kraus Anderson Construction
    • The Beck Group
    • PCL Construction Enterprises
    • The Walsh Group
    • Hill International
    • Engineered Structures, Inc. (ESI)

“*” marked represents similar segmentation in other categories in the respective section.

Frequently Asked Questions

The global data center construction market is expected to reach US$ 95,388.9 million by 2028
The market is expected to witness a CAGR of 7.4% during the forecast period (2021-2028).
The increasing demand for interconnection bandwidth by telecom sector is expected to drive growth of the market during the forecast period.
In 2020, BFSI segment held the largest market share among end-use industry.
North America held the largest share in the market in 2020, accounting for 34.7% share in terms of value.
Key players operating in the market include  DPR Construction, Inc., Turner Construction Co., Holder Construction Company, Hensel Phelps Construction Co, Balfour Beatty US, Helix Electric, Sudlows, Kraus Anderson Construction, The Beck Group, PCL Construction Enterprises, The Walsh Group, Hill International, and Engineered Structures, Inc. (ESI).

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