Dublin, Oct. 11, 2024 (GLOBE NEWSWIRE) -- The "Data Center Construction Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2019-2029F" report has been added to ResearchAndMarkets.com's offering.
The Global Data Center Construction Market was valued at USD 225.15 Billion in 2023 and is expected to reach USD 346.32 Billion by 2029 with a CAGR of 7.28% through 2029.
The global Data Center Construction market has experienced substantial growth and transformation, driven by the accelerating demand for digitalization, cloud computing, and data storage solutions. As organizations increasingly rely on data-intensive applications and technologies, the need for robust and scalable data centers has become paramount. This trend is further amplified by the proliferation of Internet of Things (IoT) devices, big data analytics, and artificial intelligence (AI) applications, all of which require significant computational power and storage capabilities. Consequently, data center construction has emerged as a critical sector, addressing the infrastructure needs of various industries, including IT, telecommunications, finance, and healthcare.
Several factors contribute to the expansion of the data center construction market. The exponential growth of data generated by businesses and consumers necessitates advanced storage and processing facilities. Companies are investing heavily in data centers to enhance their operational efficiency, ensure data security, and meet regulatory compliance requirements. Secondly, the shift towards cloud-based services has prompted tech giants such as Amazon, Google, and Microsoft to construct large-scale data centers to support their cloud offerings. These hyper-scale data centers, characterized by their vast size and capacity, are a significant driving force in the market, enabling service providers to offer scalable and cost-effective solutions to their clients.
The market is also characterized by technological advancements aimed at enhancing the efficiency and sustainability of data centers. Innovations in cooling technologies, such as liquid cooling and free air cooling, are being adopted to reduce energy consumption and operational costs. Additionally, the integration of renewable energy sources, like solar and wind power, is gaining traction as companies strive to minimize their carbon footprint and adhere to stringent environmental regulations. These advancements not only improve the operational efficiency of data centers but also align with the global trend towards sustainability and green building practices.
COVID-19 pandemic has further underscored the importance of resilient and scalable data center infrastructure. The surge in remote work, online education, and digital entertainment during lockdowns has accelerated the demand for data center services. This unprecedented increase in digital activity has prompted both enterprises and service providers to invest in new data center facilities and upgrade existing ones to ensure uninterrupted service delivery and enhance disaster recovery capabilities.
Infrastructure Type Insights
Electrical Infrastructure segment dominated in the global Data Center Construction Market in 2023. One of the primary reasons for the dominance of the electrical infrastructure segment is the increasing need for energy efficiency and reliability in data centers. As data centers house a significant number of servers and other IT equipment, they require a stable and uninterrupted power supply to prevent downtime and ensure seamless operations. Any power disruption can lead to significant data loss and operational interruptions, which can be costly for businesses.
Therefore, investing in reliable electrical infrastructure is critical to mitigate these risks. The rise of hyper-scale data centers has intensified the focus on electrical infrastructure. Hyper-scale facilities require massive amounts of power to support their vast computational needs. This necessitates the deployment of advanced electrical systems capable of managing high power loads efficiently. Consequently, the adoption of UPS systems, which provide backup power during outages, and PDUs, which ensure efficient power distribution, has become increasingly prevalent.
The shift towards renewable energy sources is influencing the electrical infrastructure segment. Data center operators are integrating solar, wind, and other renewable energy sources to reduce their carbon footprint and comply with environmental regulations. This integration requires sophisticated electrical infrastructure to manage the variable nature of renewable energy and ensure a stable power supply. The geographical expansion of data centers is another factor contributing to the prominence of the electrical infrastructure segment. In regions such as North America, Europe, and Asia-Pacific, where data center construction is booming, there is a heightened demand for advanced electrical systems to support the growing number of facilities. Emerging markets are also witnessing increased investments in data centers, further driving the need for robust electrical infrastructure.
Regional Insights
North America dominated the global Data Center Construction Market in 2023. The region's advanced technological infrastructure and high concentration of major tech companies and data center operators, such as Amazon Web Services (AWS), Google, Microsoft, and Facebook, play a pivotal role. These tech giants have made substantial investments in building and expanding hyper-scale data centers to support their extensive cloud services, big data analytics, and AI applications. Their presence in North America ensures a continuous flow of capital and innovation into the data center construction sector.
The proliferation of cloud computing and digital services across various industries in North America fuels the demand for robust and scalable data center infrastructure. Enterprises increasingly migrate their operations to the cloud, relying on data centers for storage, processing, and data management. This shift is driven by the need for operational efficiency, cost savings, and enhanced data security. Consequently, the construction of new data centers and the expansion of existing facilities remain strong.
North America's regulatory environment and policies favor data center construction and operation. The region boasts well-established standards for data security, energy efficiency, and environmental sustainability. Compliance with these regulations ensures that data centers meet stringent requirements, fostering investor confidence and encouraging further development.
Incentives and tax benefits provided by state and local governments also attract investments in data center projects. The availability of reliable and cost-effective energy sources is another significant factor. North America, particularly the United States, benefits from a stable power supply and competitive energy prices. Moreover, the integration of renewable energy sources, such as wind and solar power, aligns with the industry's push towards sustainability. Data center operators in North America increasingly adopt green energy solutions to minimize their carbon footprint and adhere to environmental regulations.
The region's robust telecommunications infrastructure and high internet penetration further contribute to its dominance. With widespread access to high-speed internet and advanced network capabilities, North America provides an ideal environment for data centers to operate efficiently. This infrastructure supports the seamless delivery of digital services and enhances the overall performance of data centers.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 185 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $225.15 Billion |
| Forecasted Market Value (USD) by 2029 | $346.32 Billion |
| Compound Annual Growth Rate | 7.2% |
| Regions Covered | Global |
Data Center Construction Key Players are
- Turner Construction Company
- Holder Construction Group, LLC
- DPR Construction
- Hoffman Structures Inc.
- Hensel Phelps
- Gilbane Inc.
- J.E. Dunn Construction Company
- Brasfield & Gorrie, L.L.C
- M. A. Mortenson Company
- AECOM
For more information about this report visit https://www.researchandmarkets.com/r/3jus00
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