Dublin, March 15, 2024 (GLOBE NEWSWIRE) -- The "Data Center Construction Market Report by Construction Type, Data Center Type, Tier Standards, Vertical, and Region 2024-2032" report has been added to ResearchAndMarkets.com's offering.
The global data center construction market size reached US$ 55.8 billion in 2023. The market is projected to reach US$ 103.6 billion by 2032, exhibiting a growth rate (CAGR) of 7.13% during 2023-2032
The increasing reliance on online shopping and e-commerce platforms, rising use of m-banking apps, and the growing usage of IoT devices generating massive amounts of data are some of the major factors propelling the market. 
The increasing reliance on e-commerce platforms that necessitate robust data storage and processing capabilities is strengthening the growth of the market. Additionally, the rising adoption of data center facilities in the banking, financial services and insurance (BFSI) sector to streamline banking operations and enhance the experience of the user is favoring the market growth. Along with this, the rising use of m-banking apps on account of rapid digitization and considerable reliance on smartphones is positively influencing the market.
Furthermore, the rising utilization of the Internet of Things (IoT) devices to generate massive amounts of data is creating a positive outlook for the market. Apart from this, the escalating demand for content delivery network (CDN) services for faster internet content delivery is driving the need for geographically distributed data centers worldwide. Furthermore, the rising adoption of data center construction in the healthcare industry to record and maintain patient data is bolstering the market growth.
North America accounted for the largest market share since the region has a highly skilled workforce in areas like data center design, construction, and management. Additionally, the increasing adoption of cloud-based services, especially among startups and SMEs in the region is offering a favorable market outlook. Moreover, the rising frequency and sophistication of cyber-attacks across public and private organizations are favoring the growth of the market in the region.
Besides this, the rising adoption of digital financial services is catalyzing the demand for secure and efficient data centers to handle the rising volume of financial transactions and data in the region. Moreover, North America is home to major technology hubs like Silicon Valley, the Research Triangle in North Carolina, and the Boston-Cambridge area. These hubs drive innovation and create a strong demand for data center services.
Competitive Landscape
The leading companies are integrating advanced cooling technologies, such as liquid immersion cooling and free cooling systems, to make their way into modern data centers. These cooling technologies allow for more effective heat dissipation and reduce the need for mechanical cooling, thereby lowering energy costs.
They are also using prefabricated components that can be quickly assembled on-site, which allows for faster deployment and easier scalability. Prefabricated modules often come with integrated electrical and mechanical systems, which reduce the construction time and potential for errors. Moreover, key players are incorporating artificial intelligence (AI) and machine learning (ML) in data center management systems that can predict equipment failure, optimize cooling systems in real time, and manage energy usage more efficiently.
Data Center Construction Market Trends/Drivers
Increase in data consumption
The exponential increase in data consumption across the globe represents one of the key factors favoring the market growth. Additionally, with the proliferation of digital technologies like IoT devices, smartphones, and cloud computing, data storage requirements are increasing globally. Businesses, governments, and individual consumers generate and consume vast amounts of data daily, which necessitates secure and efficient storage solutions.
Apart from this, as more organizations are adopting digital transformation strategies, need for high-capacity, reliable data centers are rising. Furthermore, various public and private organizations are increasingly investing in expanding existing data centers or constructing new facilities, thus fueling the demand for data center construction.
Rise in regulatory compliance
The increasing cases of cybersecurity thefts are driving the need for data protection and privacy regulations. Governments and international bodies are enforcing stringent laws that mandate secure data storage and handling. The implementation of regulations like GDPR for data storage and security is encouraging organizations to invest in data centers that meet these compliance standards.
Non-compliance can result in hefty fines and loss of customer trust, making it crucial for companies to opt for state-of-the-art data center facilities. Moreover, the rising need to adhere to legal and regulatory norms is propelling enterprises to either upgrade their existing infrastructure or initiate new data center construction projects.
Growing hybrid cloud adoption
The increasing adoption of hybrid cloud architectures is another significant factor propelling the market growth. A hybrid cloud combines private and public cloud structures, which offers businesses flexibility and optimized performance and allows organizations to store sensitive data in private data centers while utilizing public clouds for less-critical tasks, thereby providing a balanced approach to data storage and processing. Apart from this, the growing need to construct data centers that are compatible with hybrid cloud architectures is offering a favorable market outlook.
Furthermore, the shift towards hybrid cloud strategies is enabling seamless data migration, enhanced security, and efficient resource allocation, making it an attractive option for many enterprises. Moreover, the escalating demand for the construction of data centers that can support and facilitate the complexities of a hybrid cloud environment is driving the market.
Key Questions Answered in This Report
- What was the size of the global data center construction market in 2023?
- What is the expected growth rate of the global data center construction market during 2024-2032?
- What are the key factors driving the global data center construction market?
- What has been the impact of COVID-19 on the global data center construction market?
- What is the breakup of the global data center construction market based on the construction type?
- What is the breakup of the global data center construction market based on the data center type?
- What is the breakup of the global data center construction market based on the tier standards?
- What is the breakup of the global data center construction market based on the vertical?
- What are the key regions in the global data center construction market?
- Who are the key players/companies in the global data center construction market?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 146 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value (USD) in 2023 | $55.8 Billion |
| Forecasted Market Value (USD) by 2032 | $103.6 Billion |
| Compound Annual Growth Rate | 7.1% |
| Regions Covered | Global |
Competition Analysis
- AECOM
- DPR construction Inc.
- Eaton Corporation Inc.
- Fujitsu Limited
- Holder Construction Company
- Legrand SA
- Rittal GmbH & Co. KG
- Schneider Electric SE
- Tripp Lite
- Turner Construction
- Vertiv Group Corporation
Data Center Construction Industry Segmentation:
Breakup by Construction Type:
- Electrical Construction
- Mechanical Construction
Breakup by Data Center Type:
- Mid-Size Data Centers
- Enterprise Data Centers
- Large Data Centers
Breakup by Tier Standards:
- Tier I & II
- Tier III
- Tier IV
Breakup by Vertical:
- Public Sector
- Oil & Energy
- Media & Entertainment
- IT & Telecommunication
- Banking, Financial Services and Insurance (BFSI)
- Healthcare
- Retail
- Others
Breakup by Region:
- North America
- United States
- Canada
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Brazil
- Mexico
- Others
- Middle East and Africa
- Turkey
- Saudi Arabia
- Others
For more information about this report visit https://www.researchandmarkets.com/r/ki4b6m
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