Data Center Construction Market Share

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

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

    
    
  
  
  
  

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