Data Center Construction Market

Global Data Center Construction Market Size (2024 to 2029)

The global data center construction market was valued at USD 28.65 billion in 2023 and is projected to reach USD 48.05 billion by 2029, registering a growth rate of 9% over the forecast period.

A data center is a facility a business uses to host computer systems, servers, network systems, and other related components to meet the business infrastructure needs. This involves storing, processing, and processing large amounts of crucial data, ranging from small servers to large-scale robust industrial equipment and dedicated client architecture. Building the data center is a critical task that requires meticulous planning in terms of location, storage, and hardware that will be used to maintain and control the environment within the data center. Location is an important factor to consider when planning the construction of a data center, as it is crucial to keep the environment cool. Data center computers, such as the server and the storage, operate 24 hours a day, seven days a week, and generate a large amount of heat, which could lead to equipment failure, thereby affecting the efficiency of the service provider.

The market is being propelled by a surging demand for cloud applications, with the use of cloud storage driving this trend. It is estimated that a staggering 80% of all business workloads will transition to the cloud. This shift is further evidenced by the rapid increase in the number of files stored in the cloud, including a significant percentage of confidential data.

In addition, adopting a data center defined by health software stimulates the market. Medical expenses are increasing yearly, and the cost of optimization from the client's point of view is also at the center of concern. According to the Institute for Health Measurement and Assessment, by 2040, health spending is expected to reach about $ 18.28 trillion, while high-income countries will spend about $ 9,019 per person in 2040.

Market Growth and Trends:

The growing adoption of hyperscale data centers in large companies drives market growth as they are used in different industries to increase computing capacity, memory, network infrastructure, and storage resources.

Several cloud-based companies, such as Google and Facebook, are focusing on investing in supercomputers that meet their hyperscale needs. For example, in mid-2020, Facebook plans to build its fifth hyperscale facility, an H-shaped building with an area of 2.5 million square feet. Additionally, in February 2019, CtrlS, India's largest data center player, announced its INR 2000 investment in establishing hyperscale infrastructure, which would be the world's largest Tier 4 hyperscale data center.

In addition, the sale of data center equipment designed to the specifications of the Open Compute Project is booming. The advanced cooling solution in next-generation data centers without additional modification promotes this market boom.

For example, in May 2020, Wiwynn announced the introduction of its advanced standalone liquid rack cooling solution with the next-generation Open Compute Project (OCP) server to meet the growing demand for high power consumption and computing density for the cloud.

Global Data Center Construction Market Drivers:

The global data center construction market is expected to grow with the rising need for energy-efficient data centers to cope with the impact of its operations on carbon and increase the use of more renewable assets in its businesses. As a result, data centers aim to be green, resulting in increased use of electricity from solar and wind power for data centers. Evaporative cooling, the use of low-emission building materials, and the reuse of waste are among the strategies used on green server farms. Plus, green server farms help run IT operations, power, and cooling bases efficiently. Additionally, to manage an increasing amount of data, companies are forced to operate numerous data centers, which are typically located in remote locations. This is another factor that is stimulating the market to build data centers.

Global Data Center Construction Market Restraints:

On the other hand, the lack of resources and the popularity of containerized data centers are serious limitations in this business. Containerized data centers provide infrastructure support to organizations with a limited budget to build a data center, ultimately reducing demand for traditional data centers.

Impact of Covid-19 on the global data center construction market:

The COVID-19 pandemic struck at a time when the demand for data center capacity is increasing rapidly, and restrictions on the construction of new facilities have been placed. There is a certain impact on the market because the traffic on the data network has increased by increasing the use of applications such as Zoom, Microsoft Office, and others. However, based on the trend, the second quarter of 2020 will see 3.2 million server unit shipments. In addition, the pandemic has complicated the construction of a data center due to a disruption in the supply chain, which will slow market growth.

GLOBAL DATA CENTER CONSTRUCTION MARKET REPORT COVERAGE:

This research report on the global data center construction market has been segmented and sub-segmented based on the type of infrastructure, type of data center, organization size, vertical, and region.

Global Data Center Construction Market - By Type of Infrastructure:

• Electrical Infrastructure

  • UPS

  • Generators

  • Rack Power Distribution Units

  • Switches

  • Transfer Equipment

  • Others

• Mechanical Infrastructure

• General Construction

Global Data Center Construction Market - By Type of Data Center:

• Level I

• Level II

• Level III

• Level IV

Global Data Center Construction Market - By Organization Size:

• SMEs 

• Large

Global Data Center Construction Market - By Vertical:

• Banking, Financial and Insurance Services

• IT and Telecommunications

• Government and Defense

• Healthcare

• Retail Investment

• Energy

• Manufacturing

• Others

Global Data Center Construction Market - By Region:

The global data center construction market is mainly covered in the areas of:

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• Latin America

Of these, North America is the prominent region in the global marketplace due to the presence of leading companies and end-users and the increased investments in adopting advanced technologies.

Key market players:

Some of the main participants operating in this market are:

1. Corgan

2. Currie & Brown Holdings Limited

3. DPR Construction

4. Holder Construction Company

5. AECOM

6. Arup

7. HDR

8. Jones Engineering Group

9. Turner Construction Company

10. Fortis Construction Inc

11. ISG plc

12. Skanska

13. Gensler

14. Schneider Electric

15. Structure Tone

16. MA Mortenson Company

17. Rogers-O'brien Construction Company Ltd

18. Brasfield & Gorrie

19. Pepper Construction

20. The Boldt Company and Others

Recent Developments

• In May 2020, VBit DC made an investment of around USD 1.1 million, which can be used to build a 200 MW data center in Alberta, Canada. When complete, the gigantic VBit data center in Alberta will be one of the largest data centers in the world dedicated exclusively to Bitcoin mining operations. The size of the center and access to low-cost electricity will allow VBit DC to offer its customers greater mining efficiency and significantly better ROI.

• In May 2020, Microsoft announced its plans to build the first data center in Central and Eastern Europe in Poland. The value of the company's entire investment project is expected to exceed USD 1 billion. The new data center region will join Microsoft's global infrastructure, which includes 59 cloud regions that ensure the availability of the Microsoft Azure service in more than 140 countries. It will allow local access to the full range of corporate cloud services.