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
North America is expected to hold dominant position in the global data center construction market during the forecast period.
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
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.
|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|
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).
|Restraints & Challenges:||
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
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.
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:
“*” marked represents similar segmentation in other categories in the respective section.