Data center construction market

Data Center Construction Market, 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), and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2028

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Jan 2022
CMI4872
170 Pages
Excel & Pdf
Information and Communication Technology

Summary

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

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.

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

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).

Table of Content

*Browse 60 market data tables and 40 figures on "Data Center Construction Market- Global forecast to 2028”

Segmentation

Detailed Segmentation

- Frequently Asked Questions -

What is the expected market size of global data center construction market in 2028?

The global data center construction market is expected to reach US$ 95,388.9 million by 2028

What is the expected compound annual growth rate (CAGR) of the market during the forecast period (2021-2028)?

The market is expected to witness a CAGR of 7.4% during the forecast period (2021-2028).

What is the primary factor contributing to growth of the market?

The increasing demand for interconnection bandwidth by telecom sector is expected to drive growth of the market during the forecast period.

Based on end use industry, which segment held the largest market share in the market in 2020?

In 2020, BFSI segment held the largest market share among end-use industry.

Which region held the largest market share in the market in 2020?

North America held the largest share in the market in 2020, accounting for 34.7% share in terms of value.

Who are the key players operating in the market?

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).