Chicago, Aug. 29, 2022 (GLOBE NEWSWIRE) -- According to Arizton’s latest research report, U.S. data center construction market to grow at a CAGR of around 3.5% during 2022-2027. The growing popularity of IoT, the emergence of 5G networks, the COVID-19 pandemic, and the demand for streaming online entertainment content at high speeds are the major factors driving the growth of the US data center market. The use of cloud computing services and applications will also continue to grow in the US, leading to further development of large hyperscale cloud-based data centers.
In the US, data centres run by cloud service providers store and process data generated around the world. However, the implementation of data localization across other counties has not affected the US market to date and continues to experience strong growth YoY. Also, the market is witnessing a considerable surge in the development of self-built hyperscale data center facilities. For example, Facebook, Google, and Microsoft are rapidly expanding their presence in the US with the development of additional data centers.
The increase in data center development has led to a higher procurement of renewable energy. Several data center operators, such as Equinix, Digital Realty, Amazon, Google, Apple, and Microsoft, are strongly committed to investing in renewable energy procurement. For instance, in November 2021, Microsoft signed a renewable energy deal with The AES Corporation to power its Virginia data centers. Facebook signed a 160 MW Power Purchase Agreement (PPA) with D. E. Shaw Renewable Investments (DESRI) to power its Virginia data centers. Further, AWS signed a 474 MW PPA with TotalEnergies in July 2021.
U.S. Data Center Construction Market Report Scope
| Report Attributes | Details |
| MARKET SIZE (2027) | Around $25 Billion |
| MARKET SIZE (2021) | $20.13 Billion |
| MARKET SIZE - AREA (2027) | 20.07 million Square Feet |
| POWER CAPACITY (2027) | 2,825 MW |
| CAGR | Around 3.5% |
| BASE YEAR | 2021 |
| FORECAST YEAR | 2022-2028 |
| MARKET SEGMENTS | Facility Type, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, and Tier Standards |
| GEOGRAPHIC ANALYSIS | US (Western, South-Eastern, Mid-Western, South-Western, and North-Eastern) |
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Rise in Data Center Expansion Initiatives
Leading data center service providers are investing heavily in new construction and expansions, which has resulted in a significant increase in the number of data centers being built in the US. Acquisitions and joint ventures make it possible for new competitors to enter the market, draw in clients, and increase their market share. The US data center market also encourages real estate and investment companies to buy data centers. Such acquisitions are usually followed by expansion initiatives, leading to stronger market growth. Most investments will be focused on the edge data center market, with unexpected demand from current and new clients in data centers.
Increasing Availability of Innovative UPS Battery Technologies
Data center operators are trying to increase the efficiency of their facilities and reduce the Total Cost of Ownership (TCO). This is especially true in the case of hyperscale and colocation operators that are required to handle significant amounts of data and provide superior performance. The type of UPS systems adopted has emerged as a key consideration for these vendors to minimize costs and optimize the performance of their data center facilities. VRLA-based UPS systems have been adopted by most data center operators due to benefits such as a lower CAPEX. However, owing to limitations such as a limited lifespan and higher OPEX of VRLA-based UPS systems, multiple UPS-based innovations have been introduced in the market.
Key Highlights
- In 2021, more than 100 data center projects were launched or were under construction in the US. Over 90% of data center projects are developed by colocation service providers and hyperscale operators such as Facebook, Apple, Google, and Microsoft. The rest are enterprise data centers.
- Data Center Infrastructure Management (DCIM) technologies are rising among data center operators in the US. For instance, Microsoft, Google, and Facebook are developing more efficient software-defined power systems across their data centers in the US.
- Increased adoption of renewable energy is witnessed among data center operators. For instance, QTS Realty Trust announced that its data center facility in Richmond, Virginia, was using a mix of solar, wind, and hydroelectricity as renewable energies to power the data center
- To attract data center investment, many state and local governments offer investment and sales tax incentives. For instance, North Carolina offers incentives for data center operators that invest a minimum of around $250 million for Internet data centers and $150 to $225 million for enterprise data centers spread over five years.
Key Data Center Support Infrastructure Providers
- ABB
- Caterpillar
- Cummins
- Delta Electronics
- Eaton
- Legrand
- Rolls-Royce
- Schneider Electric
- STULZ
- Vertiv
Key Data Center Contractors
- AECOM
- Arup
- Black & Veatch
- Corgan
- DPR Construction
- Fortis Construction
- Harley Ellis Devereaux (HED)
- Holder Construction
- Jacobs
- Rogers-O’Brien Construction
- Syska Hennessy Group
- Turner Construction
Key Data Center Investors
- Apple
- Amazon Web Services (AWS)
- CyrusOne
- DataBank
- Digital Realty
- Equinix
- Facebook (Meta)
- Microsoft
- NTT Global Data Centers
Other Prominent Support Infrastructure Providers
- Airedale International Air Conditioning
- Alfa Laval
- Asetek
- Bloom Energy
- Carrier
- Condair
- Cormant
- Cyber Power Systems
- Data Aire
- Enlogic
- FNT Software
- Generac Power Systems
- Green Revolution Cooling (GRC)
- HITEC Power Protection
- Johnson Controls
- KOHLER
- KyotoCooling
- Mitsubishi Electric
- Natron Energy
- NetZoom
- Nlyte Software
- Rittal
- Siemens
- TRANE (Ingersoll Rand)
- Tripp Lite
- Yanmar (Himoinsa)
- ZincFive
Other Prominent Construction Contractors
- AlfaTech
- BlueScope Construction
- Burns & Mcdonnell
- CallisonRTKL
- Clune Construction
- EMCOR Group
- EYP MCF
- Gensler
- Fluor Corporation
- Gilbane Building Company
- HDR
- HITT Contracting
- Hoffman Construction
- JE Dunn Construction
- Linesight
- M+W Group (EXYTE)
- Morrison Hershfield
- Mortenson
- Sheehan Nagle Hartray Architects
- Structure Tone
- The Mulhern Group
- The Walsh Group
- The Weitz Company
- Tindall
Other Prominent Data Center Investors
- Aligned
- American Tower
- CloudHQ
- Cologix
- Compass Datacenters
- COPT Data Center Solutions
- CoreSite Realty
- Cyxtera Technologies
- DartPoints
- DC BLOX
- EdgeCore Internet Real Estate
- EdgeConneX
- EdgePresence
- Element Critical
- Flexential
- fifteenfortyseven Critical Systems Realty
- GIGA Data Centers
- HostDime
- Iron Mountain
- Prime Data Centers
- QTS Realty Trust
- Sabey Data Center
- Skybox Datacenters
- Stream Data Centers
- STACK INFRASTRUCTURE
- Switch
- T5 Data Centers
- Vantage Data Centers
- Vapor IO
New Entrants
- AUBix
- Cirrus Data Services
- DāSTOR
- EdgeX Data Centers
- Novva
- PointOne
- Quantum Loophole
- Yondr
Market Segmentation
Facility Type
- Colocation Data Centers
- Hyperscale Data Centers
- Enterprise Data Centers
Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Electrical Infrastructure
- Uninterruptible Power Supply (UPS) Systems
- Generators
- Power Distribution Units
- Transfer Switches & Switchgear
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers
- Condensers & Dry Coolers
- Economizer & Evaporative Coolers
- Other Cooling Units
Cooling Techniques
- Air-based Cooling Techniques
- Liquid-based Cooling Techniques
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM / BMS Solutions
Tier Standards
- Tier I & II
- Tier III
- Tier IV
Geography:
- THE U.S.
- Western
- South-Eastern
- Mid-Western
- South-Western
- North-Eastern
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