Global Data Center Construction Market

Global Data Center Construction Market Size, Share, Growth Analysis, By Type(Tier I, Tier II), By Application(Electrical Infrastructure and Mechanical Infrastructure) - Industry Forecast 2023-2030


Report ID: SQMIG45D2060 | Region: Global | Published Date: March, 2024
Pages: 197 | Tables: 62 | Figures: 75

Global Data Center Construction Market Insights

Global Data Center Construction Market size was valued at USD 213.55 billion in 2022 and is poised to grow from USD 229.57 billion in 2023 to USD 409.43 billion by 2031, growing at a CAGR of 7.5% during the forecast period (2024-2031).

The global data center construction market is expected to continue its growth trajectory as the demand for data storage and processing capabilities expands. Factors such as the proliferation of edge computing, 5G technology, and the increasing importance of data privacy and security are likely to drive the market further. Moreover, advancements in technologies like modular data center construction and prefabricated components are expected to streamline the construction process and improve efficiency in the coming years. The rise in digital transformation initiatives across various industries has led to the need for robust and scalable data center infrastructure. Additionally, the increasing adoption of cloud services by businesses and consumers has further fueled the demand for data center facilities. Key players in the global data center construction market include construction companies, engineering firms, and data center infrastructure providers. These companies offer services such as site selection, architectural design, electrical and mechanical installations, and project management.

The construction of data centers involves various stages, including site preparation, design and engineering, procurement of equipment and materials, construction of physical infrastructure, and commissioning. Sustainability and energy efficiency have become crucial considerations in data center construction, with an emphasis on utilizing renewable energy sources and implementing efficient cooling systems. Challenges in the data center construction market include the high cost of construction, complex infrastructure requirements, and the need for skilled labor and expertise in managing large-scale projects. Additionally, regulations and compliance standards related to data privacy and security pose additional challenges that need to be addressed during the construction process.

Market snapshot - 2024-2031

Global Market Size

USD 213.55 billion

Largest Segment

Tier Ill

Fastest Growth

Tier Ill

Growth Rate

7.5% CAGR

Global Data Center Construction Market 2021-2030 ($ Bn)
Country Share for North America Region- 2021 (%)
Global Data Center Construction Market Size By Type 2021-2030 ($ Bn)
Global Data Center Construction Market Size By Type 2021-2030 (%)

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Global Data Center Construction Market Segmental Analysis

Global Data Center Construction market is segmented by type, application, and region. Based on type, the market can be segmented into tier I, tier II, tier III, and tier IV. Based on distribution channel, the market is segmented into electrical infrastructure, and mechanical infrastructure. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Data Center Construction Market Analysis by Type

By type, the market can be segmented into tier I, tier II, tier III, and tier IV. The dominating segment in the data center construction market is currently Tier III data centers, which offer a balance between cost and availability. These data centers are popular among small to medium-sized enterprises that require high availability for their critical applications but have budget constraints. Tier III data centers have redundant components for power and cooling systems, ensuring 99.982% uptime, which is more than Tier I and Tier II data centers.

The fastest-growing segment in the data center construction market is Tier IV data centers, which offer the highest level of redundancy and availability. These data centers are designed to provide 99.995% uptime, making them suitable for mission-critical applications that require continuous operations. Tier IV data centers have multiple power sources, cooling systems, and network connectivity to ensure maximum uptime and minimal downtime. The demand for Tier IV data centers is driven by the increasing need for highly secure and reliable data storage facilities for applications such as healthcare, finance, and government.

Data Center Construction Market Analysis by Application

By application, the market can be segmented into electrical infrastructure, and mechanical infrastructure. Electrical Infrastructure dominated the data center construction market. This segment includes components such as Uninterruptible Power Supply (UPS), generators, transfer switches and switchgears, power distribution units (PDUs), and other electrical equipment. Electrical infrastructure components are essential for ensuring continuous power supply and preventing data loss or downtime in case of power outages or surges. With the increasing use of cloud computing, big data, and the Internet of Things (IoT), the demand for Electrical Infrastructure components in data centers is growing. Additionally, as organizations are increasingly shifting towards renewable energy sources, the demand for sustainable and energy-efficient electrical infrastructure components is also rising.

The fastest-growing segment in the data center construction market is Mechanical Infrastructure. This segment includes cooling systems, racks, and other components that maintain optimal operating conditions for servers and other IT equipment in data centers. With the growing use of high-performance computing (HPC) applications and artificial intelligence (AI) workloads, the heat density in data centers is increasing. As a result, efficient and reliable cooling systems are becoming critical for ensuring the continuous operation of data centers. Furthermore, as data centers continue to expand in size and capacity, the demand for scalable and modular mechanical infrastructure solutions is also increasing.

Global Data Center Construction Market Size By Type, 2021 (%), 2022 (%)

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Global Data Center Construction Market Regional Insights

North America dominated the data center construction market due to the presence of several established cloud service providers, such as Amazon Web Services, Microsoft, and Google. The region also has a well-developed IT infrastructure, making it easier for companies to build and operate data centers. The United States is the largest market in the region, accounting for the majority of the market share. The country is experiencing significant growth in the construction of hyperscale data centers, which are increasingly being adopted by companies to manage and process large amounts of data. Canada is also emerging as a potential market, as the government is investing in developing its digital infrastructure.

The APAC region is expected to be the fastest-growing market for data center construction. The region is witnessing significant growth due to the increasing adoption of cloud computing and the growing number of internet users. The IT infrastructure market in the region is also expanding rapidly, with China being the largest market in the region. The Chinese market is being driven by the government's initiatives to promote digitalization, such as the Made in China 2025 plan. Japan is also a significant market, with several large data center providers operating in the country. Other countries, such as India and Australia, are emerging as potential markets due to their growing IT infrastructure and increasing demand for data center services.

Global Data Center Construction Market By Geography, 2021-2030, 2024-2031
  • Largest
  • Fastest

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Global Data Center Construction Market Dynamics

Data Center Construction Market Drivers

Increasing demand for cloud computing

  • One significant driver for the growth of the data center construction market is the increasing demand for cloud computing. As more companies shift their operations to the cloud, the need for data centers to store and manage data also increases. The rise in data consumption by enterprises is also contributing to the growth of the market. Moreover, the construction of hyperscale data centers and the establishment of multi-tenant or colocation facilities are expected to create more opportunities in the market.

Data Center Construction Market Restraints

High cost associated with building and operating data centers

  • One significant restraint for the data center construction market is the high cost associated with building and operating data centers. The market requires significant capital investment to construct and maintain facilities, including expenses for IT infrastructure, power distribution, cooling solutions, and other miscellaneous costs. Additionally, the high energy consumption of data centers contributes to their operating costs. Furthermore, the shortage of skilled professionals in the data center construction industry poses a challenge to the market's growth, as it limits the industry's capacity to develop and maintain data centers.

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Global Data Center Construction Market Competitive Landscape

The global data center construction market is highly competitive, with several regional and global players operating in the industry. The market is characterized by intense competition, where companies strive to offer innovative solutions to meet customer demands. In order to improve their service offerings and brand value, market participants are concentrating on mergers, collaborations, and acquisitions, which is fostering a favourable atmosphere for the data centre building industry. Additionally, businesses are spending a lot of money on research and development to create new technologies that will lower building costs and boost data centre productivity.

Top Player’s Company Profiles in Data Center Construction Market

  • AECOM (US)
  • Skanska AB (Sweden)
  • Jacobs Engineering Group Inc. (US)
  • Clark Construction Group, LLC (US)
  • Hensel Phelps Construction Co. (US)
  • Structure Tone (US)
  • Mortenson (US)
  • ISG plc (UK)
  • Balfour Beatty plc (UK)
  • M. A. Mortenson Company (US)
  • Corgan (US)
  • NCC AB (Sweden)
  • Holder Construction Company (US)
  • Gilbane Building Company (US)
  • HITT Contracting Inc. (US)
  • The Whiting-Turner Contracting Company (US)
  • PCL Construction (Canada)

Global Data Center Construction Market Recent Developments

  • In May 2023, Data center provider Iron Mountain announced the launch of its Iron Cloud Edge service for edge computing and IoT applications.
  • In April 2023, Data center developer and operator EdgeConnex announced plans to invest $1 billion in building data centers in Asia over the next five years.
  • In March 2023, Data center provider QTS Realty Trust announced the completion of its $2 billion acquisition of ServiceNow's data centers.
  • In February 2023, Data center provider Digital Realty announced plans to build a data center campus in Sydney, Australia.
  • In January 2023, Data center provider Equinix announced the acquisition of a data center in Madrid, Spain.

Global Data Center Construction Key Market Trends

  • The key market trend in the global data center construction market is the increasing adoption of modular data centers. Modular data centers offer several benefits, such as reduced construction time, lower costs, flexibility, scalability, and high energy efficiency. Modular data centers can be constructed in pre-fabricated modules, which can be assembled quickly and easily, and can be expanded or reduced based on the changing demands of businesses. This trend is gaining traction due to the need for rapid deployment and scalability of data center infrastructure in response to changing business requirements.

Global Data Center Construction Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our global data center construction market analysis, the market is driven by the increasing demand for cloud computing and the rise in data consumption by enterprises. The high cost associated with building and operating data centers and the shortage of skilled professionals in the industry pose a challenge to the market growth. However, the establishment of multi-tenant or colocation facilities and the adoption of modular data centers are expected to create growth opportunities. The Asia Pacific region witnessed significant growth in the market due to the upsurge in sales of networking equipment. Companies such as Huawei, Dell, and Hewlett Packard have played a decisive role in the growth of the IT infrastructure segment. The increasing adoption of modular data centers is a key trend in the market, offering several benefits such as flexibility, scalability, and high energy efficiency.

Report Metric Details
Market size value in 2022 USD 213.55 billion
Market size value in 2031 USD 409.43 billion
Growth Rate 7.5%
Base year 2022
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Tier I, Tier II, Tier III, Tier IV
  • Application
    • Electrical Infrastructure and Mechanical Infrastructure
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • AECOM (US)
  • Skanska AB (Sweden)
  • Jacobs Engineering Group Inc. (US)
  • Clark Construction Group, LLC (US)
  • Hensel Phelps Construction Co. (US)
  • Structure Tone (US)
  • Mortenson (US)
  • ISG plc (UK)
  • Balfour Beatty plc (UK)
  • M. A. Mortenson Company (US)
  • Corgan (US)
  • NCC AB (Sweden)
  • Holder Construction Company (US)
  • Gilbane Building Company (US)
  • HITT Contracting Inc. (US)
  • The Whiting-Turner Contracting Company (US)
  • PCL Construction (Canada)
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Global Data Center Construction Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Global Data Center Construction Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Global Data Center Construction Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Data Center Construction Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Data Center Construction Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Global Data Center Construction Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Data Center Construction Market size was valued at USD 213.55 billion in 2022 and is poised to grow from USD 229.57 billion in 2023 to USD 409.43 billion by 2031, growing at a CAGR of 7.5% during the forecast period (2024-2031).

The global data center construction market is highly competitive, with several regional and global players operating in the industry. The market is characterized by intense competition, where companies strive to offer innovative solutions to meet customer demands. In order to improve their service offerings and brand value, market participants are concentrating on mergers, collaborations, and acquisitions, which is fostering a favourable atmosphere for the data centre building industry. Additionally, businesses are spending a lot of money on research and development to create new technologies that will lower building costs and boost data centre productivity. 'Turner Construction Company (US)', 'DPR Construction (US)', 'AECOM (US)', 'Skanska AB (Sweden)', 'Jacobs Engineering Group Inc. (US)', 'Clark Construction Group, LLC (US)', 'Hensel Phelps Construction Co. (US)', 'Structure Tone (US)', 'Fluor Corporation (US)', 'Mortenson (US)', 'ISG plc (UK)', 'Balfour Beatty plc (UK)', 'M. A. Mortenson Company (US)', 'Corgan (US)', 'NCC AB (Sweden)', 'Holder Construction Company (US)', 'Gilbane Building Company (US)', 'HITT Contracting Inc. (US)', 'The Whiting-Turner Contracting Company (US)', 'PCL Construction (Canada)'

One significant driver for the growth of the data center construction market is the increasing demand for cloud computing. As more companies shift their operations to the cloud, the need for data centers to store and manage data also increases. The rise in data consumption by enterprises is also contributing to the growth of the market. Moreover, the construction of hyperscale data centers and the establishment of multi-tenant or colocation facilities are expected to create more opportunities in the market.

The key market trend in the global data center construction market is the increasing adoption of modular data centers. Modular data centers offer several benefits, such as reduced construction time, lower costs, flexibility, scalability, and high energy efficiency. Modular data centers can be constructed in pre-fabricated modules, which can be assembled quickly and easily, and can be expanded or reduced based on the changing demands of businesses. This trend is gaining traction due to the need for rapid deployment and scalability of data center infrastructure in response to changing business requirements.

North America dominated the data center construction market due to the presence of several established cloud service providers, such as Amazon Web Services, Microsoft, and Google. The region also has a well-developed IT infrastructure, making it easier for companies to build and operate data centers. The United States is the largest market in the region, accounting for the majority of the market share. The country is experiencing significant growth in the construction of hyperscale data centers, which are increasingly being adopted by companies to manage and process large amounts of data. Canada is also emerging as a potential market, as the government is investing in developing its digital infrastructure.

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