Data Center Construction Market is expected to reach US$ 448.14 billion by 2030

According to our latest market study on "Data Center Construction Market Size and Forecast (2023–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type of Construction, Tier Standard, and Industry Vertical," the market was valued at US$ 234.85 billion in 2022 and is expected to reach US$ 448.14 billion by 2030; it is estimated to record a CAGR of 8.4% from 2022 to 2030. The report includes growth drivers along with the data center construction market trends and their foreseeable impact during the forecast period. The data center construction market forecast is estimated on the basis of various secondary and primary research findings such as key company publications, association data, and databases.

The rise in the launch of new edge data centers reflects the evolving needs of industries and consumers for faster and more efficient data processing and storage capabilities closer to the point of use. Edge data centers are strategically positioned closer to end users, enabling faster data transmission and reduced latency. This is crucial for applications such as IoT, autonomous vehicles, augmented reality, and real-time analytics, where even milliseconds of delay can impact performance and user experience. Also, the rollout of 5G networks is driving the need for edge computing infrastructure to support the increased data traffic and low latency requirements of next-generation applications. Edge data centers play a vital role in processing and storing data at the network edge, optimizing the efficiency of 5G networks. Various industries are leveraging edge computing for a wide range of use cases. For example, in the healthcare sector, edge data centers facilitate remote patient monitoring, predictive maintenance of medical equipment, and real-time analysis of patient data. In retail, edge computing supports personalized marketing, inventory management, and in-store analytics. Further, various companies are launching new edge data centers. For instance, in February 2024, Azora launched an edge data center company targeting Spain and Portugal. The company, in collaboration with Core Capital, launched Quetta Data Centers. The company also planned to invest more than US$ 538.5 million in constructing six edge data centers in Spain and Portugal, totaling 60MW of capacity. Thus, the rise in the launch of new edge data centers fuels the data center construction market growth.

Data Center Construction Market Share– by Geography, 2022

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; and Nikom InfraSolutions Pvt. Ltd. are among the key players profiled in the data center construction market report. Several other major companies have been analyzed during this research study to get a holistic view of the ecosystem. The market forecast is estimated on the basis of various secondary and primary research findings such as key company publications, association data, and databases.

The scope of the data center construction market report covers North America (US, Canada, and Mexico), Europe (Russia, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). In terms of revenue, North America dominated the data center construction market share in 2022. APAC is expected to record the highest CAGR during the forecast period.

APAC comprises the majority of developing economies and also has the largest number of internet users. This factor presents significant opportunities for leading social media players and internet-based service providers to profit from the untapped APAC market. With the proliferation of cheap smartphones and tablets and increasing penetration of computing devices in businesses and households, the region accounts for the largest growing user base seeking internet-based services. Thus, the strong growth of internet-connected users, coupled with good economic growth in the region, are the factors encouraging the enterprise and cloud service providers to establish servers in proximity to the users. This enables them to access data with reduced latency and reaction time, which contributes to the data center construction market growth in the region.

Moreover, development in cloud computing technology is expected to fuel the growth of the data center construction market in the near future. The majority of data centers located in the region are 7–12 years old and lack the required infrastructure to support modern high computing platforms. Retrofitting old data centers to support cloud computing platforms is characterized as an expensive proposition. Therefore, many organizations are seeking to build new data centers, thus fueling the growth of the data center construction market in the region. Another factor driving the market in the region is data sovereignty. In many countries, governments are placing stringent regulations on data storage, which necessitates the agencies to seek data center services. For instance, the government of Indonesia forced regulation No.82, which prohibits the storage of financial documents outside the country without government approval.

The data center construction market analysis has been carried out by considering the following segments: type of construction, Tier design, and industry vertical. 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.

Data center standards evaluate the quality and reliability of data center server hosting ability. These standards are developed by Uptime Institute, LLC, an advisory organization focused on the development of IT infrastructure. The ratings range from Tier 1 data center to Tier 4 data center. Tier level increases with the cost of infrastructure and operational complexities. Selecting a suitable Tier-level data center depends on the enterprise's business needs.

The Tier 3 segment held the largest share in the data center construction market in 2022, and the Tier 4 segment is expected to record the highest CAGR during the forecast period. Tier 3 data centers utilized by large business enterprises offer features such as 99.982% uptime and N+1 fault tolerance, offering a minimum of 72 hours of power outage protection. Tier 3 data centers or concurrently maintainable data centers do not require any shutdown for equipment maintenance and replacement. This can be achieved by adding the redundant delivery path for cooling and power to the redundant component of Tier 2 data centers. Tier 3 incorporates the features of both Tier 1 and Tier 2 data centers. It also requires power and cooling equipment during the maintenance process without affecting the IT processing of the organization. All the IT equipment in an organization must have dual power supplies that are directly connected to the UPS units that work offline without crashing servers. These data centers also consist of redundant cooling systems, which can be used whenever one cooling unit fails to cool the room. The demand for Tier 3 facilities is high primarily due to an increase in the requirement for flexible data centers. Tier 3 data centers allow flexibility in carrying out the planned activity of power and cooling systems without disturbing the hardware operating in the data center space.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com