The data center construction market is projected to reach US$ 448.14 billion by 2030 from US$ 234.85 billion in 2022. The market is expected to register a CAGR of 8.4% during 2022–2030. Increasing adoption of green data centers is anticipated to bring key trends in the data center construction market during the forecast period.
Data Center Construction Market Analysis
Companies such as Siemens, Schneider Elec., Stulz, ABB, EATON, HT, and Mat Sci provide essential equipment for data centers, including servers, storage systems, networking equipment, and power and cooling systems. They work with the data center owners and design firms to select the right equipment for the specific needs of the facility. Further, when a new data center is being built by any company, it pays to bring the general contractor on board early rather than seeking out the process and ending up with unqualified subcontractors on the project. There are several general contractors present in the market such as Winthrop, Mace, Mercury, and Sisk.
Additionally, construction companies are responsible for the actual construction of the data center, including site preparation, building construction, and installation of the IT infrastructure. They need to be experienced in working with the specialized materials and systems required for data centers, such as raised floors, power distribution units, and cooling systems. Construction companies such as Rittal GmbH & Co KG, Schneider Electric SE, DPR Construction Inc, and INFINITI IT Ltd are present in the data center construction market
The world's data generation and consumption are increasing exponentially, driven by the adoption of big data analytics, artificial intelligence (AI), cloud computing, and the Internet of Things (IoT) across various industries. This necessitates more data centers to store, process, and distribute this data, leading to rising demand for construction services globally. Additionally, with the rising adoption of cloud and digital services across the globe, the need for data centers is increasing. As a result, several major cloud providers plan to construct their data centers in various countries. A few of such instances are listed below:
- In January 2024, Digital Realty announced the launch of its first data center in India on a 10-acre campus capable of supporting up to 100 megawatts (MW) of critical IT load capacity in Chennai's industrial and manufacturing hub.
- In October 2023, Link Net, an Indonesian broadband provider, launched a new data center in Surabaya, in east Java. The company announced its partnership with Chinese telco ZTE with an aim to complete the upgradation of data center facilities in Jakarta and build a new data center in Surabaya.
Data Center Construction Market Overview
Data center construction is the physical establishment of a facility that accommodates and facilitates various IT operations and equipment for the storage, processing, and management of data. It encompasses designing and constructing a data center facility that adheres to specific requirements and standards. Data center construction prioritizes the creation of a floor plan that offers sufficient space to accommodate current and future servers and equipment. This ensures that the facility can effectively manage the growing requirement for data storage and processing. Data centers must be designed to withstand natural disasters such as earthquakes, floods, and storms. Construction efforts involve implementing preventive measures and mitigating their impact, including incorporating fire prevention systems and ensuring an adequate water supply for firefighting. Data center construction entails meticulous planning and design of infrastructure components such as cabling, cooling systems, power supply, and security measures. Building codes and industry standards are considered to ensure efficient and safe operations. The construction process typically comprises several stages, including assessment, planning, design, and actual construction. Each stage requires careful consideration of business needs, facility requirements, and compliance with regulations. Data centers vary in size, capacity, and purpose. Different types and tiers exist, each possessing specific characteristics and capabilities. The design and construction of a data center depend on its intended use and the desired level of redundancy and reliability. Data center construction is a complex and critical process that necessitates expertise in areas such as architecture, electrical engineering, mechanical engineering, and IT infrastructure. Its objective is to establish a secure, reliable, and efficient environment for data storage and processing operations.
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Data Center Construction Market: Strategic Insights
Market Size Value in US$ 234.85 billion in 2022 Market Size Value by US$ 448.14 billion by 2030 Growth rate CAGR of 8.4% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Data Center Construction Market: Strategic Insights
| Market Size Value in | US$ 234.85 billion in 2022 |
| Market Size Value by | US$ 448.14 billion by 2030 |
| Growth rate | CAGR of 8.4% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Data Center Construction Market Drivers and Opportunities
Rapid Expansion of IoT Services
The IoT has transformed data centers in recent years due to a surge in the adoption of IoT and IoT devices such as lightbulbs, cellphones, and webcams. With the rise in the number of IoT devices, the reliance on data centers to appropriately store, process, and analyze data is also growing. In addition, as more and more devices connect to the internet through IoT, they generate massive amounts of data. These devices include sensors in smart homes, wearables, industrial equipment, and connected cars, among others. The type of data generated by these devices is becoming increasingly diverse and complex. It includes location data, environmental data, usage data, and even real-time video streams. Further, analytics and processes are critical components in a company's digital transformation. Analytics and processes provide an avenue for data centers to expand their activities in terms of their operations. Their distinct digitization processes will include IoT deployment in operations, capacity building, business development, infrastructure, and system utilization. As more devices connect and generate massive data, the need for efficient and scalable data center infrastructure also increases. Thus, the expansion of IoT services fuels the data center construction market growth.
Data Center Construction Market Report Segmentation Analysis
The “Data Center Construction Market analysis” has been performed by considering the following segments: type of construction, Tier design, industry vertical, and geography. 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 electrical construction segment held the largest data center construction market share in 2022 and is expected to record the highest CAGR during the forecast period. A data center involves several electrical devices, including utility feeds, switchgear, generators, UPS, and PDUs, that help transmit power from a utility feed to server racks. Electrical supplies supplied to data center infrastructure need to be converted to a usable voltage level, which is done by using a transformer. In addition, utility grids are the main source of power supply to the data centers. At the same time, switchgear helps safely supply power from the transformer or utility to the data center floor. Further, generators and uninterruptible power supply deliver longer-term and temporary backup power, respectively. Power distribution units help transfer electricity or power to racks and standalone systems.
Data Center Construction Market Share Analysis, by Geography
The geographic scope of the Data Center Construction Market report is mainly divided into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. In terms of revenue, North America dominated the data center construction market share in 2022, and Asia Pacific is expected to record the highest CAGR during the forecast period.
The data center construction market in North America witnessed continued growth in 2023, which was majorly attributed to the substantial rise in the adoption of blockchain among cloud providers. In the US, Texas, Austin, North California, and certain areas of San Antonio registered relatively higher cloud activity. However, the overall absorption and demand for data centers in the US and other prominent countries have been derived from the trends of the previous year. The data center construction market in North America is increasing significantly. For instance, in October 2023, JE Dunn resumed construction on a US$ 800 million Meta data center project in Temple, Texas. Similarly, in April 2023, Equinix announced plans for the construction of a new data center in Montreal, Canada. Also, in November 2023, Vertiv introduced Vertiv SmartMod Max CW, a prefabricated modular data center designed to address the growing demand for rapid deployment of computing across North America. Thus, the increasing number of data center launches contributes to the growing data center construction market size in North America.
Data Center Construction Market News and Recent Developments
The Data Center Construction Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. As per company press releases, key developments in the Data Center Construction Market are mentioned below:
- In October 2022, Quantum Loophole, an innovative developer of first-of-their-kind Gigawatt-scale master planned data center communities, selected the data center construction specialist team of STO Mission Critica to manage the development of Quantum Frederick, Quantum Loophole's new data center development site in Frederick, Maryland.
- In February 2023, Coromatic, the leading supplier of mission-critical infrastructure for secure power supply and data communication, was commissioned to design, build, and deliver the mission-critical equipment for Conapto's new data center in southern Stockholm.
- In June 2023, Datalec Precision Installations (DPI), one of the providers of world-class data center design, supply, build, and managed services to deliver seamless, integrated, and unified end-to-end solutions for data center operators, incorporated a UAE subsidiary as a part of its continued international expansion. Headquartered in the UK, Datalec has subsidiaries in 15 other countries.
Data Center Construction Market Report Coverage and Deliverables
The “Data Center Construction Market Size and Forecast (2022-2030)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analyses
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type of Construction, Tier Standard, Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The global data center construction market was estimated to be US$ 234.8 billion in 2022 and is expected to grow at a CAGR of 8.4% during the forecast period 2023 – 2030.
Rise in launch of new edge data centers, rapid expansion of IoT services, and surge in data center construction activities are the major factors that propel the data center construction market.
Increasing adoption of green data centers is anticipated to play a significant role in the global data center construction market in the coming years.
The key players holding majority shares in the global data center construction market are DPR Constructions Inc, Turner Construction Company, AECOM, Rittal GmbH & Co. KG, and Schneider Electric.
The global data center construction market is expected to reach US$ 448.1 billion by 2030.
The incremental growth expected to be recorded for the global data center construction market during the forecast period is US$ 213.3 billion.
The List of Companies - Data Center Construction Market
- 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
- Nikom InfraSolutions Pvt. Ltd.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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