Data Center Construction Market - By Data Center Type (Small, Medium, Large), By Infrastructure (Electrical, Mechanical, Networking), By End use (BFSI, Energy, Government, Healthcare, IT & Telecommunication, Manufacturing), & Forecast, 2023 – 2032

Data Center Construction Industry Analysis

Data Center Construction Market size was valued at over USD 200 billion in 2022 and is anticipated to grow at a CAGR of over 7% between 2023 and 2032. The increasing demand for data storage will drive the market during the forecast period. The proliferation of digital information and the growth of cloud computing, big data analytics & Internet of Things (IoT) applications have increased the need for data storage. Data centers, the backbone of storing and processing big data, support the demand for data infrastructure.
 

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Data center construction is the process of designing, building, and maintaining a physical system that includes computers, servers, storage devices, network equipment, UPS, and other systems needed for data storage, processing & distribution. A data center is a central hub that provides control to ensure the stable operation of IT infrastructure and critical services.
 

Building and operating a data center requires skilled workers with expertise in many areas including construction, electrical engineering, communications, and air conditioning. However, the shortage of specialists and a lack of skill & knowledge will limit market growth during the forecast period.
 

COVID-19 Impact

The COVID-19 pandemic impacted many markets including the data center construction market in 2020. The pandemic hampered the construction industry including delays in project timelines and disruptions in the supply chain. Travel restrictions, lockdown measures, and safety protocols have impacted the availability of construction materials & labor, creating logistical challenges and leading to delays in data center construction projects.
 

Data Center Construction Market Trends

The increasing demand for cloud services will fuel market growth during the forecast period. The rapid adoption of cloud computing by various industries is increasing the demand for data centers. Cloud service providers require robust & large-capacity data center infrastructure to host and deliver their services. The demand for hyperscale data centers and colocation data center continues to grow as more organizations turn to cloud solutions. Cloud computing enables businesses to scale their IT infrastructure according to the changing needs. Organizations can also easily expand or shrink their computing resources as needed. To support the above-mentioned efficiency, cloud service providers need data centers with the flexibility to adapt to cloud applications & services.
 

Data Center Construction Type Segmentation

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Based on the data center type, the data center construction market is segmented into small data center, medium data center, and large data center. The large data center segment held over USD 90 billion in 2022. The increasing data across industries, driven by digitization, IoT devices, artificial intelligence, and big data analytics, has led to the need for data centers. Organizations need an efficient infrastructure with high storage and performance to effectively process & analyze data. In addition, the rapid growth of e-commerce platforms, online streaming services, and social media networks also requires large data centers to process large amounts of data and provide a good user experience. These platforms rely on large data centers to store product catalogs & user data, process transactions, and ensure high availability & performance.
 

Data Center Construction Infrastructure Segmentation

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Based on infrastructure, the market is divided into electrical infrastructure, mechanical infrastructure, networking infrastructure, others. The mechanical infrastructure segment held over 35% data center construction market share in 2022. The mechanical infrastructure segment is a critical component in data center construction and refers to systems & equipment responsible for the cooling, power distribution, and ventilation in data center facilities. The need for increased energy and storage capacities has led to a surge in data center blackouts. Data centers must also support high-performance servers and equipment that generate a large amount of heat. Therefore, there is an increasing need for cooling systems to maintain the temperature and prevent the equipment from overheating. The increased energy density enables the implementation of more complex problem-solving processes.
 

Data Center Construction End-Use Segmentation

Based on end use, the market is divided into BFSI, energy, government, healthcare, manufacturing, IT & telecom, and others. IT & telecommunication held a significant market share of over 20% in 2022. The IT & telecommunication industry creates and processes a large amount of data. Data centers are essential to effectively store, process, and manage this data. As the demand for data storage and processing in the IT & telecommunication industry continues to increase, there is a corresponding need for data centers. The launch of 5G networks is also fueling the demand for data center infrastructure in the IT & telecommunication industry. 5G networks are expected to be more energy-efficient and less data-intensive to support advanced applications such as the Internet of Things (IoT), Augmented Reality (AR), and Virtual Reality (VR). Data centers play an important role in providing the necessary infrastructure to support the performance & efficiency of 5G networks.
 

Data Center Construction Regional Analysis

North America data center construction market held over USD 75 billion in 2022 and is expected to grow at a CAGR of over 7% through 2032. North America is home to many technology companies, cloud service providers, and digital businesses that require data center infrastructure. Technological development and focus on innovation in the region will increase the demand for data centers. Companies continue to invest in the creation & expansion of data centers to support their operations and meet the growing demand for digital services. The adoption of cloud computing and digital transformation is important in North America.
 

Businesses across industries are moving their operations to the cloud and using information technology. This change increases the need for data centers to host cloud services, provide storage & processing power, and support the organization's digital transformation. The data center construction industry in North America is witnessing significant investment and growth. With the continuous rise in digital services, cloud computing, and massive amounts of data, the demand for data center construction will increase. The participation of domestic and international investors will further lead to the construction of new data centers and expansion of existing facilities.
 

Data Center Construction Industry Leaders

Major companies operating in the data center construction market include Alibaba Cloud, Amazon Web Services (AWS), Apple iCloud, AT&T, INC., Baidu Cloud, Broadcom Ltd., Digital Realty, Equinix, Facebook (Meta), Google Cloud Platform (GCP), IBM Cloud, Microsoft Azure, NTT Communications, Oracle Cloud Infrastructure (OCI), and Tencent Cloud.
 

Data Center Construction Industry News:

• In May 2023, NTT Communication announced plans to invest USD 59 billion in data centers, Artificial Intelligence (AI), and other growth areas in the next five years. It has allocated around USD 11 billion to building or modernizing its data centers and approximately USD 22 billion to the digital business segment, which includes AI & robotics.
   

The data center construction market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Data center type

• Small-Scale Data Center
• Medium-Scale Data Center
• Large-Scale Data Center

By Infrastructure

• Electrical Infrastructure
• UPS
• Power Distribution Units (PDUs)
• Backup Generators
• Others

• Mechanical Infrastructure [
• Cooling Systems
•  HVAC
  • Computer Room Air Conditioning CRAC) Units
    • Fan Arrays
    •  Air Flow Measurement Damper
    •  DOAS
  • Precision Air Conditioning (PAC) Units
    • Face mounted plenum fan with EC motor
    • MAU
    • ERV
  • Chilled Water Systems
    • Dampers
    • Condenser Fans
  • Ventilation Systems
  • Direct Expansion (DX) Systems,
  • Others
• Racks
• Ductwork
• Raised Flooring
• Others
• Networking Infrastructure
• Others

By End-Use

• BFSI
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
  • Mexico
• Europe 
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • Singapore
• South America
  • Brazil
  • Argentina
  • Colombia
  • Chile
• MEA
  • South Africa
  • GCC