Coherent Market Insights

Data Center Construction Market to Reach US$ 370.76 Bn by 2031

Data Center Construction Market to Reach US$ 370.76 Bn by 2031 - Coherent Market Insights

Publish In: Jul 03, 2024

Global data center construction market is estimated to witness high growth owing to increasing adoption of cloud-based services and growing construction of hyperscale data centers

Global Data Center Construction Market is estimated to be valued at US$ 225.87 Billion in 2024, exhibiting a CAGR of 7.3% over the forecast period 2024-2031. The market is expected to register robust growth due to increasing adoption of cloud-based services, IoT, big data analytics and growing construction of hyperscale data centers globally. Furthermore, rising demand for high-speed internet and data processing is also augmenting the market growth.

Market Dynamics:

Growing Adoption of Cloud-Based Services: The adoption of cloud-based services such as SaaS, PaaS, and IaaS has increased exponentially over the past few years. As data traffic continues to surge across industries, there is a growing need for constructing new data centers and upgrading the existing infrastructure to support cloud platforms. Moreover, rising workload of enterprises on public and private clouds is propelling data center construction activities.

Construction of Hyperscale Data Centers: Hyperscale data center operators are constructing large centralized data centers around the world to cater to growing demand from clients. Hyperscale data centers are an economical and energy-efficient solution for data storage and management.

Increasing Demand for Cloud-Based Services

There has been rise in cloud computing over the past few years as more businesses and individuals adopt cloud-based services for data storage, backup and application access. This surge in demand for cloud services is driving large investments in data center construction to support the infrastructure needs of major cloud providers like Amazon Web Services, Microsoft Azure and Google Cloud. As cloud adoption keeps growing, the demand for more data centers will stay high.

Growing Big Data Analytics Requirements

As digital data from sources like IoT devices, social media, websites and business transactions continues to explode, there is a growing need for big data analytics capabilities. Analyzing this massive volume of structured and unstructured data requires huge computational power and data storage, which can only be supported through large data centers. Data center providers are responding to this big data trend by building new facilities specifically designed for high performance computing and machine learning workloads.

High Capital Investments Required

Constructing large-scale data center facilities requires massive upfront capital investments running into hundreds of millions of dollars. The high costs associated with land acquisition, building infrastructure, electrical systems, cooling equipment, security systems and IT deployment make data center builds a major financial undertaking. This high barrier to entry tends to restrain growth in the industry.

Rising energy consumption concerns

Data centers have a significant carbon footprint due to the massive amounts of electricity needed to power servers and cooling systems round the clock. With power needs growing exponentially due to demand for cloud and data analytics, there is increasing scrutiny around the environmental impact of these facilities. Strict government regulations around emissions and energy efficiency standards in some countries act as a restraint on unfettered growth of the data center industry.

Edge Data Center Deployments

The desire for lower latency connectivity to support applications like augmented reality, autonomous vehicles and telemedicine is boosting demand for decentralized edge data center deployments closer to end users. This represents an opportunity for data center operators to target new markets through smaller facilities located in more cities and regions.

Infrastructure Investment Programs

Various governments around the world have unveiled large infrastructure investment programs focusing on digital transformation initiatives that include investments in data center development. For example, China's digital silk road project and Japan's digital gardens program are pumping billions into national data center infrastructure - opening up new regions and clients for industry players.

Link - https://www.coherentmarketinsights.com/market-insight/data-center-construction-market-4872

Key Development:

  • In June 2022, Vantage Data Centers announced plans to establish data center campuses in Poland and Germany. The German facility, covering 13 acres, completed its first building and is set to offer 32MW across 250,000 square feet (24,000 sqm) when fully developed.
  • In April 2022, Google announced a significant investment to expand its data center infrastructure by constructing a new facility in Nebraska. The company allocated USD 750 million to build a large campus in Omaha, consisting of four buildings spanning over 1.4 million square feet. This initiative is part of Google's commitment to invest USD 9.5 billion in new data centers, demonstrating its dedication to meeting the changing needs of its digital services.

Key Players:

ABB, Acer Inc., AECOM, Ascenty, Arup Group Ltd., Cisco Systems, Inc., CORGAN, CyrusOne Inc., Clune Construction Company, L.P., Dell Inc., Digital Realty Trust Inc., DPR Construction Inc., Equinix, Inc., Fujitsu, Fortis Construction Inc., Gensler, Gilbane Building Company Inc., Hitachi, Ltd., HostDime Global Corp., Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., Hensel Phelps Construction Co. Inc., HITT Contracting Inc., IBM, Inspur, and IPXON Netwfaorks.

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports


Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail


Logo

Reliability and Reputation

ESOMAR
DUNS Registered
Clutch
DMCA Protected

9001:2015

Reliability and Reputation

27001:2022

Reliability and Reputation

EXISTING CLIENTELE

Created billion dollars of revenue impact on thousands of clients

trusted clients logo
© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.