Data Center Construction Market Size to Reach USD 470.07 Billion by 2032; Current Vital Trends, High-End Features, Potential Applications, Limitations & Companies – The Brainy Insights


Rapid technology advancements and the rollout of 5G networks are anticipated to create new growth opportunities throughout the forecast period. North American region emerged as the most prominent global data center construction market, with a 42.86% market revenue share in 2022.

Newark, Sept. 04, 2023 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the USD 214.73 billion in 2022 global data center construction market will reach USD 470.07 billion by 2032. The rollout of 5G networks requires robust data center infrastructure to support the increased data traffic and low-latency demands. Constructing data centers near 5G base stations can enhance network performance. The demand for hybrid cloud solutions, combining private and public cloud services, presents opportunities for constructing data centers that facilitate seamless integration and data management across various environments. At the same time, designing data centers with AI-specific infrastructure, such as AI processors and optimized cooling systems, caters to the growing demand for AI and machine learning applications. In addition, utilizing digital twin technology in the construction phase enhances project planning, monitoring, and predictive maintenance, improving efficiency and reducing risks.

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Key Insight of the Global Data Center Construction Market

Asia Pacific is expected to witness the fastest market growth during the forecast period.

The Asia Pacific region has a large and growing population and rising urbanization rates. This results in higher internet usage, online activities, and data generation, necessitating robust data center capacity. The region also has a high penetration of mobile devices and smartphones, leading to increased mobile data consumption and the need for localized data centers to support mobile applications. Furthermore, emerging economies within the Asia Pacific, such as China, India, Indonesia, and Vietnam, are experiencing rapid economic growth. As businesses expand and modernize, the demand for data centers to support their operations grows significantly.

In 2022, the mechanical infrastructure segment held the largest market share at 36.47% and market revenue of 78.31 billion.

The infrastructure type segment is divided into electrical infrastructure, mechanical infrastructure and general infrastructure. In 2022, the mechanical infrastructure segment held the largest market share at 36.47% and market revenue of 78.31 billion.

In 2022, the tier III segment dominated the market with the largest share of 52.14% and revenue of 111.96 billion.

The tier type segment includes tier I & II, tier III and tier IV. In 2022, the tier III segment dominated the market with the largest share of 52.14% and revenue of 111.96 billion.

In 2022, the large organization segment dominated the market with the highest share of 41.83% and market revenue of 89.82 billion.

The organization size segment is classified into small organization, medium organization and large organization. In 2022, the large organization segment dominated the market with the highest share of 41.83% and market revenue of 89.82 billion.

In 2022, the IT & telecom segment registered the highest market share of 40.72% and market revenue of 87.44 billion.

The end user segment includes BFSI, energy, government & defense, healthcare, IT & telecom, and others. In 2022, the IT & telecom segment registered the highest market share of 40.72% and market revenue of 87.44 billion.

Advancement in market

In January 2023: NTT, a global leader in technology services, has recently joined forces with Prestige Group, a prominent real estate developer in India, to collaborate on establishing a cutting-edge data center in Bengaluru, India. This strategic partnership caters to the escalating need for solid data infrastructure and cloud services within the region. The synergy between NTT and Prestige Group will create a 100MW data center. This venture also marks Prestige Group’s entry into the burgeoning Indian data center industry. Prestige Group, a local property development firm, will be responsible for constructing three data center buildings encompassing 350,000 square feet (32,500 square meters) as part of a substantial $84.8 million agreement. The initial building is anticipated to be finalized within the upcoming year. The comprehensive project will be executed in three phases, ultimately developing one million square feet of gross leasable area.

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Market Dynamics

Driver: Rising data privacy and security concerns and 5G implementation.

Heightened data privacy and security concerns have prompted organizations to opt for on-premises data centers or private cloud solutions. These factors have led to increased construction of dedicated data center facilities to ensure better control over sensitive data. Besides, the rollout of 5G networks demands more excellent computing resources to handle the increased data traffic and to support low-latency applications. Data centers, particularly those located at the edge, are essential to realizing the full potential of 5G technology.

Restraint: Limited availability of skilled workforce.

Building and maintaining data centers require a skilled workforce with expertise in various areas, such as electrical engineering, networking, cooling systems, and cybersecurity. There often needs to be more skilled professionals, which can drive project delays and increased labour costs. Data centres must also adhere to various regulations related to data privacy, security, environmental impact, and building codes. Navigating these complex compliance requirements can be time-consuming and costly.

Opportunity: Growing hybrid cloud solution and data center modernizations.

Hybrid cloud environments combining private and public cloud services are becoming popular due to their flexibility and security benefits. Constructing data centers that facilitate hybrid cloud deployments can cater to businesses looking for a balanced data storage and processing approach. Many existing data centers are ageing and might not meet today’s technology landscape’s efficiency and capacity needs. Retrofitting and modernizing these facilities allow construction companies to offer upgrades in cooling, power distribution, and energy efficiency.

Challenge: Location challenges and cooling and heat dissipation.

Finding suitable locations for data centers can take time due to factors like proximity to urban centers, access to power infrastructure, and zoning regulations. Securing the right location is essential for ensuring operational efficiency and connectivity. However, efficiently managing heat generated by data center equipment is crucial to prevent equipment failures. Designing effective cooling systems that manage heat while minimizing energy consumption is a significant challenge.

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Some of the major players operating in the global data center construction market are:

• Acer Inc.
• Ascenty
• Arup Group Ltd.
• Cisco Systems, Inc.
• CyrusOne Inc.
• Clune Construction Company, L.P.
• Dell Inc.
• Digital Realty Trust Inc.
• DPR Construction Inc.
• Equinix, Inc.
• Fujitsu
• Fortis Construction Inc.
• Gensler
• Gilbane Building Company Inc.
• Hitachi, Ltd.
• HostDime Global Corp.
• Hewlett Packard Enterprise Development LP
• Huawei Technologies Co., Ltd.
• Hensel Phelps Construction Co. Inc.
• HITT Contracting Inc.
• Inspur
• IPXON Networks
• JE Dunn Construction Group Inc.
• KIO Networks
• Lenovo
• Legrand SA
• MA Mortenson Company Inc.
• Nabholz Corporation
• NTT Global Data Centers
• Oracle
• Schneider Electric
• SAS Institute Inc.
• Turner Construction
• The Walsh Group
• Vertiv Group Corp.

Key Segments cover in the market:

By Infrastructure Type

• Electrical Infrastructure
• Mechanical Infrastructure
• General Infrastructure

By Tier Type

• Tier I & II
• Tier III
• Tier IV

By Organization Size

• Small Organization
• Medium Organization
• Large Organization

By End User

• Energy
• Government & Defense
• Healthcare
• IT & Telecom
• Others

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter’s five forces model, attractiveness analysis, Product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

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