Wilmington, Delaware, Aug. 12, 2024 (GLOBE NEWSWIRE) -- The data center construction market is witnessing significant growth, driven by the surging demand for data storage, cloud services, and edge computing. Key trends include the adoption of energy-efficient and modular data center designs, alongside a growing focus on sustainable construction practices.
The market presents opportunities, particularly in emerging economies, where digital transformation and 5G deployment are accelerating infrastructure investments. The COVID-19 pandemic initially disrupted construction timelines due to lockdowns and supply chain challenges. However, the crisis also amplified the need for robust digital infrastructure, leading to increased investments post-pandemic as businesses adapted to remote work and online operations, further propelling market growth.
In Depth Regional Insights: Global Data Center Construction Market
North America: North America remains a leading region in the global data center construction market, driven by robust technological advancements and high demand for cloud computing and data storage solutions. The U.S. and Canada are major contributors, with significant investments in data centers to support growing digital infrastructure and 5G networks. Key markets include major tech hubs such as Silicon Valley and Toronto. The region's emphasis on innovation, combined with favorable regulatory environments and strong economic conditions, supports ongoing expansion and the adoption of advanced data center technologies.
Europe: Europe's data center construction market is characterized by a strong focus on sustainability and regulatory compliance. The region is experiencing growth due to increased demand for data storage and processing driven by digital transformation, e-commerce, and the adoption of AI and IoT technologies. Countries like Germany, the U.K., and the Netherlands are key players, with significant investments in energy-efficient and green data center designs. The European Union's stringent environmental regulations and commitment to reducing carbon emissions further influence market trends, driving innovation in eco-friendly data center solutions.
Asia Pacific: Asia Pacific is projected to be the fastest-growing region in the data center construction market, driven by rapid digitalization and increasing internet penetration in emerging economies such as China, India, and Southeast Asia. The expansion of 5G networks, cloud computing, and data analytics is fueling demand for advanced data center infrastructures. The region's growing tech industry, along with government initiatives promoting digital infrastructure and smart city developments, supports substantial investments in data center construction. Additionally, the rise of e-commerce and digital services further accelerates market growth across this diverse region.
Latin America: Latin America's data center construction market is expanding due to increasing digital transformation and the growing need for reliable data storage and processing solutions. Countries like Brazil and Mexico are leading the charge, with rising investments in data centers to support cloud services, telecommunications, and regional tech innovations. The market is also driven by the growth of e-commerce and social media, necessitating more robust data infrastructure. Despite these challenges, the region's evolving digital landscape presents significant opportunities for data center investments and development.
Middle East & Africa: The Middle East & Africa region is witnessing notable growth in the data center construction market, driven by increasing digitalization, urbanization, and the expansion of ICT infrastructure. The UAE, Saudi Arabia, and South Africa are leading investors in modern data centers, fueling smart city projects and large-scale digital initiatives. The rise of cloud services, AI, and IoT technologies is fueling demand for advanced data centers. However, the market faces challenges such as political instability and infrastructure development gaps, which can impact growth. Despite these obstacles, the region's digital evolution offers significant opportunities for market expansion.
Key Takeaways of the Report:
- Electrical segment by construction type dominated the data center construction market, capturing a substantial revenue share of 56.6% driven by the critical need for robust power distribution systems, UPS units, and backup generators. These components ensure reliable and uninterrupted power supply, essential for maintaining data center operations.
- Tier 4 is expected to be the fastest-growing segment in the data center construction market, with a projected CAGR of 5.6% over the forecast timeline. This growth is driven by the increasing demand for maximum uptime and fault tolerance, as businesses require highly reliable and resilient data center infrastructures to support critical operations and data processing.
- IT and telecom dominated the global data center construction market with a revenue share of 20.1% in 2023 owing to the substantial demand for data storage, network infrastructure, and cloud services. The sector’s growth is driven by increasing digital consumption, 5G deployments, and the expansion of online services.
- In 2023, Latin America solidified its position as the fourth-leading region in the global data center construction market, owing to the surge in data consumption and the rapid expansion of digital services. The sector's growth is driven by increased demand for cloud computing, advanced networking solutions, and the rollout of 5G technology, necessitating extensive data center infrastructure.
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A few of the major companies active within the global data center construction market are listed below:
- ABB
- Acer Inc.
- Ascenty
- Cisco Systems, Inc.
- Dell Inc.
- Equinix, Inc.
- Fujitsu
- Gensler
- Hewlett Packard Enterprise Development LP
- Hitachi, Ltd.
- HostDime Global Corp.
- Huawei Technologies Co., Ltd.
- IBM
- INSPUR Co., Ltd.
- IPXON Networks
- KIO
- Lenovo
- Oracle
- Schneider Electric
- Vertiv Group Corp.
- Other Industry Participants
Key Developments:
- In March 2023, Vertiv partnered with iPoint in Bahrain to enhance iPoint’s portfolio with Vertiv’s IT infrastructure and power solutions for data centers and edge applications, aiming to boost market presence in Bahrain and the GCC region.
- In March 2023, NTT Ltd., through NTT Global Data Centers Corp., announced a USD 90 million investment to build the Bangkok 3 Data Center (BKK3). Set to launch in H2/2024, BKK3 will be Thailand’s largest data center, offering 12MW IT capacity in 4,000 square meters, and is designed to support high-density operations with up to 30kW per rack, advancing regional digital growth.
Global Data Center Construction Market
By Construction Type
- Electrical
- Power Distribution Units (PDUs)
- Uninterruptible Power Supply (UPS) Systems
- Generators
- Transfer Switches & Switchgear
- Others
- Mechanical
- Cooling Systems
- Air Handling Units (AHUs)
- Racks
- Others
- General
- Building Design and Architecture
- Interior Fit-out
- Construction Management and Commissioning
- Others
By Tier Type
- Tier 1
- Tier 2
- Tier 3
- Tier 4
By Industry Vertical
- IT and Telecom
- BFSI (Banking, Financial Services, and Insurance)
- Healthcare
- Government and Defense
- Energy
- Retail
- Media and Entertainment
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
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