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The data center construction market is always changing because of different things that affect its growth and patterns. One big reason for how markets work is the fast increase in digital information. As more people use things like the Internet, big data analysis and new tech like smart objects (Internet of Things), there is a growing need for strong places called data centers to save, work on and manage lots of information. As companies and groups work hard to keep up in the time of computers, getting good systems for dealing with data has become very important.
Another important thing that affects how markets work is the changing world of technology. Changes in hardware, network and software technologies keep changing what's needed for data center places. For example, the change to edge computing where data is processed near its source instead of in big central offices has made people want different types of buildings and designs. These data center building companies need to change with the new tech. They should include flexibility and size that can grow, so they fit what their customers want in future times better. Money matters also help a lot in building the data center construction market. The need for data centers grows along with the overall economy, as companies grow and need extra digital setup to help their work. They also affect where and how data centers are built.
Rules about keeping data safe and private, as well as caring for the environment shape business decisions on picking when to use a server room provider or building methods. It's getting really important to think about energy use and long-term care when building data centers. As people start to look at how much harmful stuff is created by using energy, those who run big computer buildings called data centers are looking for ways to reduce their impact on the environment.
This has caused the use of new building methods in data center places and adding green energy sources into them too. Market changes show that more people are understanding the need for green practices. Clients often choose data centers with a focus on helping the environment. Competition in the data center building market also affects how it works. As more people need data center services, building companies are in a tough race to get contracts. This contest pushes forward new ways of building, styles and money-saving answers in construction. Businesses that can make good places quickly and with low costs are more likely to do well in this hard business world.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Design Type, Tier Type, and Industry Vertical. |
Data Center Construction Market Highlights:
Data Center Construction Market Overview
Data Center Construction Market Size was valued at USD 26.23 billion in 2021. The Data Center Construction market industry is projected to grow from USD 28.81 billion in 2022 to USD 58.33 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 9.2% during the forecast period (2024 - 2030).
The rise of the information technology sector is driving the growth of the data center construction market. Data centers are built using a variety of advanced and novel technologies. The internet of things, big data analytics, and artificial intelligence are examples of these technologies. This aspect will drive the data center construction market over the forecast period.
FIGURE 1: DATA CENTER CONSTRUCTION MARKET 2018-2030
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Covid-19 Analysis
The COVID-19 pandemic occurred at a time when demand for data center capacity is rapidly expanding, and restrictions on the construction of new facilities have been applied. There is a certain effect on the industry, as data network traffic has gained increased traffic by increasing the use of Industry Verticals such as Zoom, Microsoft Office, etc. However, according to the trend force, 3.2 million server unit shipments were recorded in Q2 2020. In addition, the pandemic created difficulties in the development of a data center due to disruptions in the supply chain, which will slow down market growth. ​
Data Center Construction Market Trends
Rising number of IoT devices
Internet of Things (IoT) is defined as an environment where the connectivity of computer and networks extend to different electronic devices such as mobiles, computers, electric meters, television, air conditioners, and others. This allows the devices to exchange, consume, and generate data with little human intervention. The development and increasing utilization of IoT devices is one factor that is expected to drive the data center construction market. As there is an extensive information exchange between the devices, data centers have surfaced to fulfill the storage requirement of this data. ly billions of IoT devices are connected that contribute and lead to the generation of more data which is expected to drive the requirement of construction of data centers.
Presently, the data center architecture is designed in such a way that it supports the large flow of data through the organization. The IoT has been utilized in several different sectors such as computing economics, data analytics, rising utilization of cloud computing, IP- Based networking and others. There, the number of IoT devices is rising with the adoption of IoT in different sectors such as healthcare, automation, banking, manufacturers, power plants and others, which is eventually expected to increase the requirement of constructing data centers ly.
Data Center Construction Market Segment Insights
Data Center Construction Design Type Insights
Data center design type comprises general construction, electrical construction, and mechanical construction. Electrical Construction holds the largest market share in the market. Data center design is the process of modeling and designing a data center's IT resources, architectural layout and entire infrastructure. It enables the logical conception of a data center prior to development or implementation in an organization or IT environment.
Although data center is a broad term that includes various processes and techniques, a data center design may be in the form of documents, modeled diagram systems or a combination of both. Electrical construction segment is further segmented into UPS, rack PDU, generators, transfer switches, and others. And Mechanical construction segment further comprises cooling solutions, racks, and others.
Data Center Construction Tier Type Insights
Based on Tier Type, the Data Center Construction market is segmented into Tier 1, Tier 2, Tier 3, and Tier 4. Tier 1 to tier 4 data centers are the types of standardized infrastructure, which is useful for measuring data center performance, investment, and return on investment. The Tier 4 segment accounted for the larger market share in 2021 and projected to exhibit a highest CAGR during forecast period. Tier 4 data center is designed to host computer systems and critical servers with redundant subsystems.
The compartment security zones are controlled by biometric systems. Tier 4 data centers are mostly used in enterprises with redundant and dual power instances of storage, network links, and power cooling equipment. Tier 4 is the most advanced tier among all the data center categories in which redundancy is applied across all the data centers. Tier 4 data center is a combination of all three data center tiers. This type of data centers provide end to end fault resistance by deploying and maintaining data center infrastructure duplicates.
Data Center Construction Industry Vertical Insights
Based on Industry Vertical, the Data Center Construction market is segmented into BFSI, Healthcare, IT & Telecommunication, Media & Entertainment, Oil & Energy, Public Sector, and Others. The IT & Telecommunication segment accounted for the larger market share in 2021 and projected to exhibit a highest CAGR during the forecast period. The IT and telecommunication industry vertical is on the brink of a significant transformation with the adoption of advanced analytics and green data center technologies. As the need of connectivity increases, data center adds more and more fiber optic interconnects and racks for servers.
Data Center Construction Regional Insights
Among regions, North America held a dominant position in the data center construction market in 2021 and is expected to retain its dominance throughout the forecast period. Increased government and business sector investments in urban infrastructure, as well as increased demand for network and connectivity solutions by customers such as IT and Telecom government, media and entertainment, have provided opportunities for companies in the data center construction industry. These network and connectivity technologies provide more dependable and quicker data connections between data centers in the United States. MOX Networks, LLC, for example, engaged into a relationship with Cologix in April 2020 to expand its connection options. MOX Networks is connected to Cologix Minneapolis data centers and provides various capacity services to all Cologix clients in order to provide capacity services to data centers in numerous cities across the United States.
FIGURE 2: DATA CENTER CONSTRUCTION MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Data Center Construction Key Market Players & Competitive Insights
The data center construction industry is a highly competitive market that is affected by a variety of factors, such as the rising number of IoT devices, increasing data traffic, and environmental regulations. The growth of market vendors depends on market conditions, government support, and the development of the industry. Significant players in the industry compete in terms of design construction type, availability of raw materials, and price of data center components. In particular, these companies concentrate on data centers and electrical construction. Many small and large industry participants occupy the data center construction market. players are expected to enhance their presence through organic and inorganic growth during the forecast period.
Vendors with better technological and financial resources can develop new products that can give them a competitive advantage in the data center construction market. Vendors also need to develop new technologies and keep abreast with emerging technologies that could impact the continued competitiveness of their product lines in the market.
Key Companies in the Data Center Construction market include
- AECOM
- Arup Group
- Corgan Associates Inc.
- DPR Construction
- Gensler
- HDR Architecture
- Turner Construction
- Syska Hennessy
- Hoffman Construction Company
- Floor Construction
- Fortis Construction
- Mortenson Company
- Brasfield & Gorrie, L.L.C.
- ISG LTD
- The Boldt Company
Data Center Construction Industry Developments
Microsoft has chosen a building partner for a new data center to be built in Madrid in 2023. Ferrovial said that Microsoft has chosen the company, through its subsidiary Ferrovial Construcción, to build a data center for the cloud company's upcoming launch in Spain. The building, which aims for LEED Gold certification, will be built in Madrid's San Sebastian de los Reyes neighborhood. Early in 2020, Microsoft originally revealed plans for a Spanish Azure cloud region located in Madrid. When it first announced this, it said it would use Telefónica's infrastructure and that the telecom would "accelerate its use of Microsoft's cloud internally." Ferrovial claimed to have "extensive experience" in data center construction, having constructed buildings for Telefónica and a number of financial institutions.
June 2021: NTT Ltd. declared the launch of Data Center Interconnect, a combined worldwide network material service that provides private and protected connections between NTT’s worldwide data centers and major cloud service providers through single physical port that supports multiple virtual network services.
August 2020: Arup was awarded for a sustainable summit empowering supplier to build a sustainable supply chain. The awards also include the development of a Carbon Management Plan for the event and coordinating with main suppliers to build a sustainable supply chain. Award recognition will boost the company's revenues and increase profits.
Data Center Construction Market Segmentation
Data Center Construction Design Type Outlook
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General Construction
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Electrical Construction
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UPS
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Rack PDU
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Generators
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Transfer Switches
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Others
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Mechanical Construction
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Cooling Solution
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Racks
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Data Center Construction Tier Type Outlook
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Tier 1
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Tier 2
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Tier 3
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Tier 4
Data Center Construction Industry Vertical Outlook
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BFSI
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Healthcare
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IT & Telecommunication
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Media & Entertainment
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Oil & Energy
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Public Sector
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Others
Data Center Construction Regional Outlook
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North America
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US
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Canada
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Mexico
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Europe
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Germany
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France
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UK
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Rest of Asia-Pacific
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Middle East & Africa
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South America
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