April 14, 2024
Data Center Construction Market

The Global Data Center Construction Market is estimated to Driven Advancements In Data Center Construction

With the exponential rise in digital data generation across industries, the need for large-scale, secure data storage infrastructure has increased tremendously. Data centers help organizations effectively manage this continuously escalating data load and derive useful business insights. As digital transformation continues to accelerate across sectors, data center construction is estimated to witness robust growth owing to the increasing demand for cloud-based services and applications.

Data centers are specialized, highly secure infrastructure facilities used to house servers, networking equipment and other important components for an organization’s IT needs. They enable around-the-clock storage, processing and distribution of critical digital data and applications to end-users. With features like climate control systems, backup power sources, advanced security and trained technical staff, data centers provide a optimized environment for uninterrupted digital operations. Their centrally managed, large-scale architecture allows for efficient usage of resources and drives economies of scale benefits.

The Global Data Center Construction Market is estimated to be valued at US$ 72099.62 Mn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Data Center Construction market are Regeneron Pharmaceuticals, Inc., Alimera Sciences, Oxurion NV., Abbvie Inc. and F. Hoffmann-La Roche Ltd. These organizations are focusing on partnerships, mergers and infrastructure expansion projects to strengthen their presence.

The growing investment toward development of hyperscale data center parks and adoption of modular data center designs by leading cloud providers offer significant opportunities for construction contractors. The flexibility and scalability of modular data center solutions is fueling their popularity.

North America dominates the global data center construction industry currently due to high cloud penetration and significant capital expenditure on infrastructure upgrades by large tech giants. However, Asia Pacific is emerging as a key market with heavy investments planned by governments to boost domestic data hosting capacity.

Market Drivers

The rising demand for cloud-based applications across industries has driven a surge in outsourcing of IT infrastructure and digital services to third-party data center facilities. This is a major factor propelling Data Center Construction Market Growth activity globally. The increasing reliance on digital systems in a post-pandemic world is further accentuating the need for robust, scalable data management infrastructure.

PEST Analysis

Political: The market depends on government spending in infrastructure development. Countries are increasingly focusing on digitalization of services which leads to higher demand for data centers.

Economic: With improving global economic conditions, enterprises are spending more on cloud computing and data management driving the need for data center construction. The market witnesses growth during economic expansions.

Social: Widespread internet and smartphone penetration has increased data usage and digital transformation of businesses. Remote working culture amid the pandemic has further boosted the demand for cloud services and data storage infrastructure strengthening the market.

Technological: Advances in fiber networks, cloud computing, edge technologies allow building efficient and highly scalable data centers. Adoption of prefabricated components and modular designs helps lower costs and faster deployment of data centers.

North America region accounts for the largest share of the data center construction market in terms of value. The region has strong presence of leading cloud providers with many large and mega data centers along with growing investments in centers by Chinese companies in the US. APAC witnesses the fastest growth and significant opportunities owing to rapid digitalization and need for local data storage by enterprises in emerging economies like China and India

The Western Europe region holds the second largest value share in the global market. The region is an attractive investment hub for new data centers supported by well-developed infrastructure, skilled workforce and favorable government policies promoting digital economy.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it