Data Center Construction Market Size & Share, By IT Infrastructure (Power Distribution & Cooling Infrastructure, Miscellaneous Expenses), Tier Type, End-use, Regional Forecast, Industry Players, Growth Statistics Report 2024-2032

Market Outlook:

Data Center Construction Market size crossed USD 228.5 Billion in 2023 and is expected to reach USD 420.3 Billion by 2032, witnessing more than 7.6% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 228.5 Billion
• CAGR (2024-2032): 7.6%
• Forecast Year Value (2032): USD 420.3 Billion
• Historical Data Period: 2019-2023
• Largest Region: North America
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

1. Increasing demand for cloud computing and big data: The growing adoption of cloud computing services and the increasing need for storage and processing of big data are driving the demand for data center construction. As more businesses rely on cloud-based services and data analytics, the need for robust and scalable data centers is expected to grow significantly.

2. Expansion of internet of things (IoT) and connected devices: The proliferation of IoT devices and connected technologies is generating massive amounts of data that need to be processed and stored. This trend is fueling the demand for data center infrastructure, as organizations seek to build the capacity to handle the influx of data from IoT devices and sensors.

3. Increasing investments in hyperscale data centers: With the rise of digital transformation and the need to support high-volume data processing and storage, hyperscale data centers are becoming increasingly popular. As a result, there is a growing trend of investment in large-scale data center construction projects to support the evolving needs of businesses and consumers.

4. Rising demand for edge computing: Edge computing, which involves processing data closer to the source rather than in centralized data centers, is gaining momentum due to its ability to reduce latency and improve real-time processing capabilities. This is leading to the construction of smaller, distributed data centers at the edge of the network, driven by the need to support applications such as IoT, autonomous vehicles, and augmented reality.

Report Scope

Report Coverage	Details
Segments Covered	IT Infrastructure, Power Distribution & Cooling Infrastructure, Miscellaneous Expenses, Tier Type, End-use
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Acer, Cisco Systems, Dell, Fujitsu, Hewlett Packard Enterprise Development LP, Huawei Technologies, IBM, Lenovo, Oracle, Inspur, Ascenty, ABB, Hitachi, Equinix, Gensler, Schneider Electric, HostDime Global Corp., IPXON Networks, KIO Networks, Vertiv Group Corp.

Industry Restraints:

1. High initial investment and long payback period: Data center construction requires significant upfront investment in land, infrastructure, and equipment. Additionally, the payback period for these investments can be lengthy, which may deter some organizations from committing to large-scale data center projects.

2. Environmental concerns and energy consumption: Data centers are known for their high energy consumption, which can lead to environmental concerns and regulatory challenges. As organizations strive to meet sustainability goals and reduce their carbon footprint, the energy-intensive nature of data centers can act as a restraint to further growth in the market.

3. Limited availability of skilled labor and expertise: Building and managing data centers require specialized skills and expertise, including knowledge of electrical and mechanical systems, cooling technologies, and data center design best practices. The limited availability of skilled labor and expertise in this field can act as a barrier to the expansion of data center construction projects.

Regional Forecast:

North America (U.S., Canada):

The North American data center construction market is experiencing significant growth due to the increasing demand for data storage and management solutions. The United States and Canada are the key contributors to this growth, with major tech companies and businesses investing heavily in data center infrastructure. The market is driven by factors such as the rise of cloud computing, big data analytics, and the growing need for secure and reliable data storage.

Asia Pacific (China, Japan, South Korea):

The Asia Pacific region, particularly China, Japan, and South Korea, is witnessing rapid growth in the data center construction market. This growth can be attributed to the increasing adoption of digital technologies and the proliferation of internet-enabled devices. China, in particular, is a major player in the market, with the government investing heavily in building data centers to support the country's digital economy. Japan and South Korea are also key markets, driven by the demand for advanced infrastructure to support expanding digital businesses.

Europe (United Kingdom, Germany, France):

In Europe, the United Kingdom, Germany, and France are the leading markets for data center construction. The region is experiencing a surge in demand for data storage and processing facilities, driven by the growth of e-commerce, digital media, and cloud services. Countries like the UK and Germany are noteworthy for their robust data center infrastructure, with numerous large-scale facilities being built to meet the growing demand for data storage and processing. The market in France is also expanding, driven by government initiatives to support the digital economy and the increasing need for data center services.

Segmentation Analysis:

In terms of segmentation, the global data center construction market is analyzed on the basis of IT Infrastructure, Power Distribution & Cooling Infrastructure, Miscellaneous Expenses, Tier Type, End-use.

Segment Analysis of Data Center Construction Market

IT Infrastructure

The IT infrastructure segment in the data center construction market encompasses the hardware and software components required for the efficient and reliable operation of a data center. This includes servers, storage devices, networking equipment, and virtualization software. As data centers continue to expand in size and complexity, the demand for advanced IT infrastructure solutions is expected to grow, driving the market for data center construction.

Power Distribution & Cooling Infrastructure

The power distribution and cooling infrastructure segment in the data center construction market pertains to the systems and equipment that ensure reliable power supply and efficient cooling within the data center facility. This includes UPS (uninterruptible power supply) systems, power distribution units, and precision cooling systems. With the increasing power density of modern data center equipment, the demand for robust power distribution and cooling solutions is anticipated to drive market growth in this segment.

Miscellaneous Expenses

The miscellaneous expenses segment in the data center construction market encompasses various costs associated with the planning, design, and construction of a data center facility, such as labor costs, material costs, and project management expenses. These expenses are essential for the successful implementation of a data center construction project and contribute to the overall market size and growth.

Tier Type

The tier type segment in the data center construction market refers to the classification of data centers based on their level of redundancy and reliability. Tier classifications, such as Tier I, Tier II, Tier III, and Tier IV, provide a framework for assessing the infrastructure design and operational capabilities of a data center facility. The demand for data centers with higher tier classifications, offering greater reliability and availability, is expected to shape the market dynamics in this segment.

End-use

The end-use segment in the data center construction market encompasses the various industry sectors and organizations that require data center facilities to support their IT operations and digital infrastructure. This includes enterprises, telecommunications companies, cloud service providers, and government agencies. The increasing digitization of businesses and the growing adoption of cloud services are expected to drive the demand for data center construction across diverse end-use industries.

Competitive Landscape:

The data center construction market is highly competitive with several key players vying for market share. The market is characterized by intense competition due to the increasing demand for data centers worldwide. Key players in the market are focusing on offering innovative and energy-efficient solutions to meet the growing demand for data storage and processing. Additionally, companies are also investing in research and development activities to gain a competitive edge in the market. The market is also witnessing mergers and acquisitions, partnerships, and collaborations among key players to expand their market presence and enhance their product offerings.

Top Market Players:

1. Turner Construction Company

2. DPR Construction

3. AECOM

4. Schneider Electric

5. Holder Construction Group

6. Fortis Construction

7. Hensel Phelps

8. Skanska

9. M. A. Mortenson Company

10. Jacobs Engineering Group