Global Data Center Construction Market, By Infrastructure Type (Electrical Infrastructure, Mechanical Infrastructure, and General Construction), Data Center Type (Tier 1, Tier 2, Tier 3, and Tier 4), Organization Size (Small Size Organization, Medium Size Organization, and Large Size Organization), Vertical (Banking, Financial Services and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Retail Colocation, Power and Energy, and Manufacturing, Others) – Industry Trends and Forecast to 2031.
Data Center Construction Market Analysis and Size
The global data center construction market focuses on planning, designing, and building specialized facilities that house computer systems and infrastructure to meet the rising demand for data storage and processing. With the growth of cloud computing, big data analytics, artificial intelligence, and IoT, there is a substantial increase in data generation, emphasizing the necessity for robust data center infrastructure. This industry has witnessed significant expansion in response to the escalating requirements for managing large volumes of data efficiently.
Data Bridge Market Research analyses the global data center construction market valued at USD 44.44 billion in 2023, will reach USD 87.91 billion by 2031, growing at a CAGR of 8.90% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Infrastructure Type (Electrical Infrastructure, Mechanical Infrastructure, General Construction), Data Center Type (Tier 1, Tier 2, Tier 3, Tier 4), Organization Size (Small Size Organization, Medium Size Organization, and Large Size Organization), Vertical (Banking, Financial Services and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Retail Colocation, Power and Energy, Manufacturing, Others)
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Countries Covered
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U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of the Middle East and Africa
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Market Players Covered
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Turner Construction Company (U.S.), DPR Construction (U.S.), AECOM (U.S.), Schneider Electric (France), M. A. Mortenson Company (U.S.), Arup (U.K.), Brasfield & Gorrie (U.S.), Corgan (U.S.), Currie & Brown Holdings Limited (U.K.), Fortis Construction (U.S.), Gensler (U.S.), Holder Construction Group, LLC (U.S.), Jacobs (U.S.), ROGERS-O’BRIEN CONSTRUCTION COMPANY, LCC (U.S.), Skanska (Sweden), STO Building Group (U.S.), The Boldt Company (U.S.)
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Market Opportunities
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Market Definition
Data center construction involves the planning, design, and physical implementation of facilities dedicated to housing computer systems, servers, and networking equipment. It encompasses the creation of secure and climate-controlled spaces to ensure optimal performance and reliability of data storage and processing. Construction considerations include power supply, cooling systems, and redundant infrastructure to minimize downtime and support continuous operation of critical IT services.
Global Data Center Construction Market Dynamics
Drivers
- Growing Need for Efficient Data Storage Leads to Increase in Digital Transformation
As businesses undergo widespread digital overhauls, the demand for advanced technologies such as cloud computing, artificial intelligence, and big data analytics intensifies. This escalating reliance on data-driven processes necessitates the establishment of robust data centers to accommodate the escalating volumes of information. The growing need for secure and efficient data storage, processing, and management underscores the pivotal role of data center construction.
- Growing Demand for High-Performance Applications Drives the Construction of Edge Data Centers
The escalating demand for high-performance applications, coupled with the proliferation of technologies such as 5G and the Internet of Things (IoT), is a key driver behind the surge in construction of edge data centers. As businesses and consumers seek faster and more responsive digital experiences, edge data centers play a pivotal role in reducing latency by processing data closer to end-users. This heightened need for real-time processing and low-latency applications propels the expansion of the global data center construction market, as companies invest in building infrastructure that supports the efficient deployment of edge computing solutions to meet these evolving technological demands.
Opportunities
- Surge in Data Consumption Leads to the Expansion of Data Centers
As more individuals gain access to the internet, there is an escalating demand for online services, digital content, and cloud-based applications. This surge in data consumption necessitates the expansion and construction of data centers to accommodate the increasing volumes of information. The opportunity lies in catering to the rising connectivity needs, enabling businesses to leverage the vast potential of a digitally connected global population. Data centers play a pivotal role in facilitating this connectivity by providing the infrastructure required for seamless and efficient data processing, storage, and delivery. As a result, the construction of data centers becomes a strategic investment to support and capitalize on the expanding internet landscape.
- Escalating Cyber Threats Increases Global Expansion in Data Center Construction
As organizations face heightened risks to their digital infrastructure, the imperative for robust cybersecurity measures propels increased investments in advanced data center facilities. These centers serve as fortified hubs, equipped with cutting-edge security protocols, to safeguard sensitive information from evolving cyber threats. The growing need for secure data storage and processing positions data center construction as a strategic opportunity, driven by the imperative to fortify digital ecosystems and ensure the resilience of global business operations in the face of escalating cybersecurity challenges.
Restraints/Challenges
- High Upfront Costs Creates Financial Challenges for Companies
The substantial initial investments required for designing, building, and equipping data centers present a significant hurdle for many organizations. This financial challenge becomes a restraining factor as companies, especially smaller enterprises, may find it difficult to allocate resources for comprehensive data center construction. The complex and evolving nature of technology infrastructure further compounds these costs.
- Limited Availability of Suitable Locations Hinders the Rapid Establishment of Data Centers
As the demand for data centers continues to surge, finding optimal sites with necessary infrastructure, accessibility, and environmental considerations becomes increasingly challenging. Urban space constraints, zoning regulations, and environmental concerns further compound the issue, hindering the swift establishment of data centers. This constraint poses logistical challenges for companies seeking to construct new facilities, potentially leading to increased costs and project delays.
This global data center construction market, report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the global data center construction market, contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.
Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Recent Developments
- In October 2022, Kuko's group K2 formed a partnership with Sinar Mas to establish hyperscale data centers in Indonesia. The joint venture's initial project, K2 Data Centre Jakarta 1 Campus, included four facilities in Greater Jakarta, delivering 58.8 MW of IT capacity. The first phase is set to be operational by early 2024
- In June 2022, Vantage Data Centers revealed plans for data center campuses in Poland and Germany. The 13-acre German facility completed its first building, set to offer 32MW across 250,000 square feet (24,000 sqm) when fully completed
- In April 2022, Google announced a substantial investment in expanding its data center infrastructure with the construction of a new facility in Nebraska. The tech giant dedicated USD 750 million to establish a sprawling campus in Omaha, comprising four buildings spanning over 1.4 million square feet. The initiative is part of Google's commitment to spend USD 9.5 billion on the development of new data centers, showcasing the company's dedication to meeting the evolving needs of its digital services
Global Data Center Construction Market Scope
The global data center construction market is segmented on the basis of infrastructure type, data center type, organisation size and vertical. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Infrastructure Type
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Data Center Type
- Tier 1
- Tier 2
- Tier 3
- Tier 4
Organization Size
- Small Size Organization
- Medium Size Organization
- Large Size Organization
Vertical
- Banking, Financial Services and Insurance
- IT and Telecommunications
- Government and Defense
- Healthcare
- Retail Colocation
- Power and Energy
- Manufacturing
- Others
Global Data Center Construction Market Regional Analysis/Insights
The global data center construction market is analyzed and market size insights and trends are provided by country, infrastructure type, data center type, organisation size, and vertical, as referenced above.
The regions covered in the global data center construction market are North America, South America, Europe, Asia-Pacific, and the Middle East and Africa. The countries covered in the global data center construction market report is U.S., Canada, Mexico, Brazil, Argentina, the Rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of the Middle East and Africa.
North America dominates in the data center construction market is attributed to its proactive adoption of new technologies and substantial investments in metropolitan infrastructure. The region's commitment to staying at the forefront of technological advancements, coupled with a robust focus on developing urban infrastructure, positions it as a key hub for data center construction.
The Asia-Pacific is expected to experience substantial growth, driven by a surge in investments. The increased focus on technology, expanding digital infrastructure, and rising economic development contribute to a favorable environment for data center expansion in the region. This growth trajectory positions APAC as a key player in the global data center market during the forecast period.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Data Center Construction Market Share Analysis
The global data center construction market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the global data center construction market.
Some of the major players operating in the global data center construction market are:
- Turner Construction Company (U.S.)
- DPR Construction (U.S.)
- AECOM (U.S.)
- Schneider Electric (France)
- M. A. Mortenson Company (U.S.)
- Arup (U.K.)
- Brasfield & Gorrie (U.S.)
- Corgan (U.S.)
- Currie & Brown Holdings Limited (U.K.)
- Fortis Construction (U.S.)
- Gensler (U.S.)
- Holder Construction Group, LLC (U.S.)
- Jacobs (U.S.)
- ROGERS-O’BRIEN CONSTRUCTION COMPANY, LCC (U.S.)
- Skanska (Sweden)
- STO Building Group (U.S.)
- The Boldt Company (U.S.)
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