by Market Overview:
The data center construction market consists of companies that provide construction services for building new data center facilities or renovating existing ones. These facilities house critical network infrastructures and servers that store, process and manage large amounts of data. They provide efficient cloud and server-based services to various industries including IT, telecom, BFSI, government and healthcare. Typical services required for data center construction include design, project management, installation of racks, power and cooling systems.
Market Dynamics:
Growing demand for cloud-based services and expansion of existing data center capacity are the major drivers of this market. As more organizations adopt digital transformation and store data in the cloud, the need for large data centers has increased significantly. Furthermore, rise of technologies such as AI, IoT and 5G will generate even more data requiring storage and processing, thereby boosting market growth. Increased investments by technology giants like Amazon, Microsoft, Google and Facebook in building hyperscale data centers across the globe is another key factor propelling the data center construction market forward. Higher costs associated with design, infrastructure and staffing of these facilities poses a challenge for market players. However, use of modular data center solutions, renewable energy integration and efficient cooling techniques can help reduce costs.
The global Data Center Construction Market Size is estimated to be valued at US$ 62586.47 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The data center construction market can be segmented into electrical construction, mechanical construction, and general construction. The mechanical construction segment currently dominates the market owing to increasing demand for HVAC systems, fire protection systems, and other mechanical infrastructure in data centers.
PEST Analysis
Political: Data protection laws around the world are becoming more stringent, prompting increased investment in secure infrastructure like data centers.
Economic: The growth of cloud computing and digitalization of businesses is driving demand for data storage infrastructure and new data center construction.
Social: Increased internet penetration and mobile device usage is generating vast amounts of digital data that need to be securely stored in data centers.
Technological: Adoption of new technologies like edge computing, 5G, and IoT is prompting construction of new data centers for efficient management of data traffic.
Key Takeaways
The global data center construction market is expected to witness high growth, exhibiting CAGR of 7.4% over the forecast period of 2023 to 2030, due to increasing digitization of business processes around the world. The market size for data center construction was valued at US$ 62586.47 Mn in 2023.
Regional analysis: North America currently dominates the global data center construction market owing to high demand from major technology companies. Asia Pacific is expected to be the fastest growing regional market due to government initiatives to develop digital infrastructure and growing mobile internet adoption in countries like China and India.
Key players operating in the data center construction market are DPR Construction, Inc., Turner Construction Co., Holder Construction Company, Hensel Phelps Construction Co, Balfour Beatty US, Helix Electric, Sudlows, Kraus Anderson Construction, The Beck Group, PCL Construction Enterprises, The Walsh Group, Hill International, and Engineered Structures, Inc. (ESI). Key players are focused on adopting green construction practices to build resource efficient data centers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
