Data Center Construction Market

Global Data Center Construction Market Size

The global data center construction market was worth USD 31.23 billion in 2024 and is projected to reach USD 67.83 billion by 2033, registering a growth rate of 9% from 2024 to 2033.

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 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.

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.

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.

REPORT COVERAGE

REGIONAL ANALYSIS

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 Corgan, Currie & Brown Holdings Limited, DPR Construction, Holder Construction Company, AECOM, Arup, HDR, Jones Engineering Group, Turner Construction Company, Fortis Construction Inc, ISG plc, Skanska, Gensler, Schneider Electric, Structure Tone, MA Mortenson Company, Rogers-O'brien Construction CompanyLtd, Brasfield & Gorrie, Pepper Construction, The Boldt Company, and Others.

RECENT MARKET HAPPENINGS

• 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.

MARKET SEGMENTATION

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

By Infrastructure

• IT Infrastructure:

  • Networking Equipment

  • Servers

  • Storage Systems

• Power Distribution & Cooling Infrastructure:

  • Power Distribution Units

  • Cooling Systems

• Miscellaneous Infrastructure:

  • Security Systems

  • Monitoring & Management Tools

By Tier Type

• Tier 1
• Tier 2
• Tier 3
• Tier 4

By Data Center Type

• Cloud Data Centers
• Colocation Data Centers
• Enterprise Data Centers
• Modular Data Centers
• Edge Data Centers

By Data Center Size

• Small Data Centers
• Mid-Sized Data Centers
• Large Data Centers

By Organization Size

• Small & Medium Enterprises (SMEs)
• Large Enterprises

By Industry Vertical

• IT & Telecommunications
• Banking, Financial Services, and Insurance (BFSI)
• Government & Defense
• Healthcare & Life Sciences
• Retail
• Energy & Utilities
• Manufacturing
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America