Data Center Mechanical Construction Market Size & Share 2024 - 2032
Market Size by Data Center, by Infrastructure, by End Use & Forecast.
Report ID: GMI11846
|
Published Date: October 2024
|
Report Format: PDF
Download Free PDF
Authors:
Preeti Wadhwani, Aishvarya Ambekar
Data Center Mechanical Construction Market Size
The global data center mechanical construction market was valued at USD 77.3 billion in 2023 and is projected to grow at a CAGR of 7.5% between 2024 and 2032. Increasing infrastructure development across globe is providing significant market opportunities for data center mechanical construction. Industries in Europe, including finance, healthcare, retail, and manufacturing, are rapidly adopting digital technologies.
Data Center Mechanical Construction Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
According to Eurostat, in 2022, 70% of all EU businesses reached a basic level of digital intensity. The proportion of SME with basic level of digital intensity was 41% in Greece, 47% in Bulgaria, 89% in Denmark, and 90% in Finland. This trend is increasing the need for strong and scalable data centers to handle more data storage, processing, and analysis. Companies require data centers with high-performance computing, better security, and efficient cooling. This need is driving investments in new data centers and upgrades to existing ones
Advancements in cloud-based solutions, including more powerful processors and optimized software, demand high-performance computing capabilities. Modern cloud services require data centers to support complex computing tasks, large-scale data processing, and rapid performance. This creates a need to build data centers with high-performance servers and advanced cooling systems to manage the increased computational load and ensure optimal performance. Also, to accommodate the growing demand for high-performance computing, data centers are constructed with scalable infrastructure, including modular designs and flexible capacity expansion options.
Data Center Mechanical Construction Market Trends
The demand for precision air conditioning units is rising with the growth of high-density data centers. These units are critical for maintaining stable environmental conditions, driving market growth through innovations in temperature and humidity control. Moreover, the shift towards energy-efficient cooling solutions is boosting the adoption of face mounted plenum fans with EC motors. These fans are increasingly used for their ability to reduce energy consumption and operational costs, supporting market growth. In addition, the need for precise temperature and humidity control in data centers is elevating the demand for CRAC units. The market is growing as innovations in fan arrays and airflow management enhance the performance and efficiency of these systems.
Building and running a data center requires a large financial investment. This includes costs for land, construction, equipment, cooling systems, power infrastructure, and security. The high upfront capital needed can be a barrier for investors and operators. This expense includes purchasing and installing servers, storage systems, cooling units, and power backup systems. Data centers also have long payback periods, taking time to recover the initial investments through revenue. This financial burden can deter new entrants and affect the viability of data center projects. Beyond initial costs, data centers face ongoing expenses for power, maintenance, staffing, and upgrades. High operational costs can impact profitability and make budget management challenging.
Data Center Mechanical Construction Market Analysis
Based on data center, the market is segmented into small-scale, medium-scale and large-scale. In 2023, the large-scale segment accounted for over 45% of the market share and is expected to grow significantly over the forecast time frame. Major IT & telecom companies are expanding their data center infrastructure and building large-scale, hyperscale data centers to support their cloud computing services and platforms. For instance, in December 2023, AWS announced plans to invest USD 15 billion in expanding its two existing data center regions in Japan by 2027. This significant investment aims to enhance its infrastructure capabilities in Japan, due to which the market for data center mechanical construction is expected to rise over forecast time frame.
Based on the end use, the market is divided into BFSI, energy, government, healthcare, manufacturing, IT & telecom, and others. The IT & telecom segment held 23% of the market share in 2023. The IT & telecom sector's growing reliance on cloud computing and hosting services is driving demand for data centers that offer high uptime, scalability, and robust connectivity. This demand is fueling market growth as companies expand their digital communication infrastructure.
The rollout of 5G and next-generation networks is driving the need for data centers that can support higher data traffic volumes and lower latency. This trend is propelling market growth as IT & telecom companies seek infrastructure capable of handling the demands of modern digital services.
In 2023, the U.S. accounted for a data center mechanical construction market share of over 65% in North America. The U.S. data construction market is driven by the strong demand for cloud services, digital transformation initiatives, and the expansion of hyperscale data centers. The key trends include the adoption of green data centers, edge computing, and the integration of AI for operational efficiency. Major companies, such as Amazon Web Services, Microsoft, and Google, are leading the market, continuously investing in new facilities and expanding the existing ones to meet the growing demand. The regulatory environment focuses on data privacy and sustainability, further shaping market dynamics.
Germany’s data construction market is expanding, driven by industrial demand, data privacy regulations, and the country’s status as a central European hub. Trends in the market include the adoption of sustainable energy solutions, modular data centers, and advanced cooling technologies to improve operational efficiency. Companies, such as Interxion, NTT Global Data Centers, and Equinix are the key players, continuously investing in new facilities and expanding existing ones to support the growing demand. The regulatory environment in Germany is particularly stringent, emphasizing data security, privacy, and sustainability.
China’s data construction market is rapidly expanding, driven by the tech industry growth, increasing cloud adoption, and government initiatives promoting the digital infrastructure. The key trends include the development of hyperscale data centers, the integration of AI & 5G technologies, and the focus on energy-efficiency. Major companies, such as Alibaba Cloud, Tencent Cloud, and China Telecom, are leading the market, with significant investments in new data centers across the country. The regulatory environment is heavily influenced by government policies on data localization, security, and privacy, thereby shaping market dynamics.
Data Center Mechanical Construction Market Share
AECOM, NTT Facilities, Turner & Townsend, DPR Construction, Obayashi Corporation, DSCO Group, Jacobs Engineering, Mace Group, Kajima Corporation, Skanska held a substantial market share of over 3% in the data center mechanical construction industry in 2023. AECOM is a multinational engineering firm that provides design, consulting, construction, and management services across various sectors, including infrastructure, transportation, water, and environmental projects. The company caters to a wide range of clients including government agencies, private corporations, and international organizations. The company focuses on expanding its global presence, particularly in the Asia Pacific, to tap into emerging markets to cater to a growing data center demand in the market.
Jacobs Engineering is a global provider of technical, professional, and construction services. It operates in sectors, including aerospace, defense, infrastructure, energy, and telecommunications. The company is well-known for its focus on innovation, particularly in technology integration and sustainable design, making it a major player in complex data centers infrastructures in areas such as energy efficiency and security. The company invests heavily in R&D to develop modern solutions including smart data centers and advanced colling technologies to stay ahead of competition in the market.
Data Center Mechanical Construction Market Companies
Major players operating in the data center mechanical construction industry are:
Data Center Mechanical Construction Industry News
The data center mechanical construction market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:
Click here to Buy Section of this Report
Market, By Data Center
Market, By Infrastructure
Market, By End Use
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →