Rising Construction of Hyperscale Datacenter Facilities
A data center usually supports 100 of physical servers and 1000 of virtual machines. But if a data center supports more than 1000 physical servers and 1000000 of virtual machines, then such data centers are called as hyperscale data centers. The internet users all over the world are increasing day by day.
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The statistics shows the internet users are increasing with respect to the time. The internet users have been increasing hence; there is a need for big data centres to store the data of the internet users. Due to this, companies such as Google, Amazon, Microsoft, Facebook, Alibaba, Baidu, and others have already constructed hyperscale data center to manage the data globally. There are many companies such as Apple, IBM, Twitter, LinkedIn, and others which are going to build its own hyperscale data center. Hence, by increasing internet users and need of big infrastructures for storing and managing digital data is acting as a driver for data center construction market
Growing Demand of Data Centers in Banking and Finance Sector
Nowadays, all things are getting digitalised, considering banking and finance sector, the sector which uses data centers for storing customer’s information. Generally, the information includes electronic banking services data, customer’s records, employee management transactions, and among others. However, the company needs data center to manage all its transactional data on daily basis in order to make online transactions secure, identify and maintain customer’s data. It has been observed that the transaction data of the customers is very high; hence, companies are investing to make their own data centers.
Above information shows, the investment in data center’s construction and the high rate of transaction which should be store in the data centers. There is a high demand of data centers from banking and finance sector due to high amount of transactions on daily basis as well as to make customer’s data more secure. Hence, growing demand of data centers from banking and finance sector is acting as a key driver for global data center construction market
High Initial Investment Cost for Data Center Construction
The increasing number of businesses across the world has increased demand for data centres for managing the data that is generated on the daily basis. The increasing installation of servers tends to increase the organization infrastructure cost for setting up the whole architecture. As a result, server manufacturers are developing high-density cabinets that will help organizations to efficiently manage those servers. For setting up the entire infrastructure, the organisation has to invest heavily at initial stage. Due to this, small enterprises do not have budget for the construction of data centre to manage these servers separately. As these small enterprises has limited budget that restrict them to spend on data center construction.
For instance, the cost of per square foot for data center construction is between $1,300 and $2,000 and this includes construction, infrastructure, computer servers and others.
Hence, high initial cost to construction data center for storing data and managing server is hampering the overall growth of the data center construction market globally.
Rapidly Increasing Digitalization Across the Verticals
Digitalisation is actually a process of converting information into digital form. This advance technique will help the businesses to stay competitive in the market. In the present scenario, companies are adopting digitalization across the verticals that have become one of the factors for increasing the installation of servers for accommodating the data generated on the daily basis. Major benefits of digitalized business are that it increases organisation productivity, helps in reducing operational costs, increases organization profitability and data security. The growing digitalization in the companies has further increased the installation of data centres for managing huge volume of data.
In addition to it, companies are increasingly shifting their workloads in the data centers as it provides high-security to data that further ensures complete security of data from cyber-attacks. Hence, rapidly increasing digitalization across the verticals will act as an opportunity for the global data center construction market.
Location of Data Center Construction
Any type of basic construction requires some common things such as proper water supply, transportation medium or way, proper power supply, raw materials for construction and others but data center construction are different from basic construction. Data center construction requires many things apart from basic construction requirement such as proper architecture to make design, special electrical and mechanical requirements, UPS fire suppression systems, security, monitoring, network system and others. Location plays an important role to make available all these requirements. Hence, data center construction service provider facing challenges such as -
These above challenges are hampering the overall growth of the data center construction market globally.
Some of the prominent 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, M. A. Mortenson Company, ROGERS-O’BRIEN CONSTRUCTION COMPANY, LTD, Brasfield & Gorrie, Pepper Construction, The Boldt Company and others.
Global Data Center Construction Market - Industry Trends and Forecast to 2026
Europe Data Center Construction Market – Industry Trends and Forecast to 2026
Asia-Pacific Data Center Construction Market – Industry Trends and Forecast to 2026
Middle East and Africa Data Center Construction Market – Industry Trends and Forecast to 2026
North America Data Center Construction Market – Industry Trends and Forecast to 2026