PUBLISHER: The Insight Partners | PRODUCT CODE: 1482339
PUBLISHER: The Insight Partners | PRODUCT CODE: 1482339
The data center construction market size was valued at US$ 234.85 billion in 2022 and is expected to reach US$ 448.14 billion by 2030; it is estimated to record a CAGR of 8.4% from 2022 to 2030.
The scope of the data center construction market report covers North America, Europe, Asia Pacific, Middle East and Africa, South and Central America.
The data center industry in the US is expected to evolve over the coming years owing to the new federal mandates and presidential administration for optimization of the data centers. The market for data center construction in the US is also anticipated to grow with the introduction of tax incentives and reduced electricity costs. However, the rising cost of construction and installation is one of the significant barriers to the development of data centers in the country. Nevertheless, companies such as Google, Facebook, and Amazon are building their exclusive data centers across the US. Moreover, in December 2023, Digital Realty announced that Blackstone-affiliated funds led by Infrastructure, Real Estate, and Tactical Opportunities agreed to establish a joint venture with Digital Realty to develop four hyperscale data center campuses across three metro areas. Therefore, the US data center construction market share is growing with the increasing number of data center launches.
The increasing number of mobile data users and smartphone connections (notably exceeding the number of traditional personal computer connections) with the growing dependence on mobile internet services is a noteworthy factor bolstering the data center construction market growth in China. Moreover, the presence of big telecom companies with the need for more storage capacity favors the market growth in the country. China is considered the global manufacturing hub and the largest exporter of several goods, playing an important role in international trade. With many manufacturing and international firms operating in China, the continuous growth in China's economy results in the rising need for scalable data centers. In December 2023, China became the first country to begin the assembly of an underwater commercial data center off the coast of Sanya on Hainan Island. Similarly, in November 2023, Saudi Call (an ICT service provider), China Mobile International Limited (CMI), and Chinese Shanghai Lumaotong Group (LMT) announced the launch of the construction of data centers in the kingdom.
The increasing competition in the banking & finance sector is driving companies to develop their IT infrastructure. To provide customers with advanced banking services, such as mobile banking, application-based services, mobile browsers, and SMS-based services, companies need a data center service provider that can provide security, compliance, flexibility, and scaling options. Further, with the increasing penetration of digitization across sectors outside the banking & finance sector, banking service providers need to constantly evaluate their operations to meet the changing customer demand and expectations. With the establishment of IT infrastructure, the demand for data centers increases, resulting in the construction of more data centers.
Data Center Construction Market Segments:
The data center construction market analysis has been carried out by considering the following segments: type of construction, Tier design, and industry vertical. Based on type of construction, the data center construction market is segmented into general construction, electrical construction, and mechanical construction. Based on Tier design, the data center construction market is segmented into Tier 1 and Tier 2, Tier 3, and Tier 4. Based on industry vertical, the data center construction market is segmented into IT & telecom, BFSI, government, manufacturing, retail, transportation, media & entertainment, and others. The report includes growth prospects in light of current data center construction market trends and driving factors influencing the market growth.
Data Center Construction Market Competitive Landscape and Key Developments
The data center construction market report covers the company profiling of major players such as Rittal GmbH & Co. K.G. ; Schneider Electric SE; DPR Construction Inc; Mercury Engineering Ltd; STO Building Group Inc; AECOM; HOLDER CONSTRUCTION COMPANY; Turner Construction Co; Eaton Corp Plc; and Nikom InfraSolutions Pvt. Ltd. Several other essential data center construction market players were analyzed to get a holistic view of the market and its ecosystem. The data center construction market forecast can help stakeholders plan their growth strategies.