Dublin, Feb. 09, 2024 (GLOBE NEWSWIRE) -- The "United States Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
The United States Data Center Construction Market is experiencing a robust expansion with projections indicating an increase from USD 23.29 billion in 2023 to USD 30.79 billion by 2028. This significant growth, calculated at a Compound Annual Growth Rate (CAGR) of 5.74% during the forecast period, reflects the continuously evolving technology sector and the escalating demand for data storage and processing capacity.
Key Influencers of the Market
Digital transformation initiatives, the proliferation of cloud computing, and advancements in technologies such as the Internet of Things (IoT) and artificial intelligence (AI) are among the main drivers propelling the surge in the United States Data Center Construction market. The increased need for powerful and efficient data centers is a direct response to the voluminous data generation and storage requirements brought about by these emerging technologies.
The escalation of cloud applications and the exponential rise in AI and big data workloads are contributing significantly to the market's growth dynamics. Additionally, hyperscale data centers are becoming increasingly popular, serving the massive data demands of modern businesses and organizations. However, the market faces challenges such as rising real estate costs and disruptions in supply chains, recently exacerbated by the COVID-19 pandemic.
Growing Demand for Cloud Applications and Big Data Analytics
Developments in cloud-based software and big data analytics have catalyzed the requirement for large-scale data storage and processing facilities. Leading corporations and organizations are expanding their data center footprints to accommodate this growth, with notable examples like the opening of new Oracle Cloud Infrastructure regions in the United States.
The government’s increasing investment in AI research and development underscores the significance of this sector. This continued focus on digital innovation suggests a correlating boost for data center construction, as increased amounts of data processing and storage will be required.
Significant Share Held by Healthcare Vertical
The healthcare domain is another major contributor to the growth of the US data center construction market. With more emphasis on digitized health records and data privacy mandates, there is a pressing demand for secure, compliant data centers. Innovations in medical technology and a push for more governmental support in healthcare further underscore the need for robust data centers.
Competitive Landscape
With a number of key industry participants, the market landscape presents a blend of competition and collaboration. Companies are forging alliances and pursuing acquisitions in a bid to strengthen their market presence and enhance their product offerings. One such example is the recent acquisition by IBM of Databand.ai, a leader in data observability software. This move is indicative of the strategic initiatives companies are undertaking to stay ahead in this rapidly growing market.
These developments signal a promising future for organizations participating in the US data center construction landscape, with ample opportunities for market entrants looking to capitalize on the upward trend.
- Increasing demand for advanced data storage and processing capacity due to the adoption of cloud computing, AI, and IoT
- Strategic acquisitions and partnerships by major players to enhance capabilities and meet market demand
- The healthcare sector's digitization requires state-of-the-art data center facilities to comply with data privacy and security regulations
The United States data center construction market demonstrates a compelling growth narrative driven by technological advancements and a heightened focus on data security. With a forecasted market value reaching close to $31 billion by 2028, stakeholders from various sectors are keenly watching the evolving trends and strategic developments that will define the market landscape in the coming years.
A selection of companies mentioned in this report includes:
- IBM Corporation
- Schneider Electric SE
- DPR Construction Inc.
- Fortis Construction Inc.
- Hensel Phelps Construction Co. Inc.
- HITT Contracting Inc.
- AECOM
- Clune Construction Company L.P.
- Nabholz Construction Corporation
- Turner Construction Co. (HOCHTIEF)
For more information about this report visit https://www.researchandmarkets.com/r/skglr4
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