Middle East and Africa Data Center Construction Market – Industry Trends and Forecast to 2029

Market Analysis and Size

The construction process refers to the activities involved in the design, planning, and construction of a facility. Data center costs include IT infrastructure, power distribution and cooling solutions, as well as a variety of other expenses. The growing enterprise demand for cloud computing and the continued increase in data consumption are expected to increase the adoption of data center construction market.

Data Bridge Market Research analyses that the data center construction market was valued at USD 7,107.79 million in 2021 and is expected to reach the value of USD 11328.74 million by 2029, at a CAGR of 6.00% during the forecast period of 2022 to 2029.

Market Definition

A data center is a cutting-edge facility used to manage IT-related computer systems and equipment. The process of physically constructing a data center facility is called data center construction. It connects construction standards to the operational environment requirements of data centers.

Report Scope and Market Segmentation

Data Center Construction Market Dynamics

Drivers

• Development of hyper-scale data centers by well-established companies

Many prominent companies, including Apple Inc., IBM Corporation, and Twitter, are building their own hyper-scale data centers, which is driving the data center construction market. The growing demand for IoT applications and the growing number of cloud-based service users is driving the data center construction market. The rise of edge computing, increased penetration of connected devices, and easy internet access, combined with the decreasing cost of internet services, represents an opportunity for the data center construction market.

• Rising popularity of cloud computing as well as adoption of colocation facilities

Over the forecast period, establishing multi-tenant or colocation facilities is expected to be the key trend driving the market for data center construction. Several industries and industry verticals are migrating to cloud computing, fuelling demand for colocation facilities. The cost advantages of outsourcing storage requirements are also expected to increase the popularity of multi-tenant facilities.

Opportunity

A data centre construction service provider's primary focus is on site selection, data centre conceptualization and cost analysis, contract negotiations to lower total project costs, commissioning agent selection, and project completion. Increased digitalization is one of the factors driving the global data centre construction industry. Other factors driving market expansion include the increasing usage of cloud-based security solutions to improve productivity and efficiency, as well as an increase in the number of research and development capabilities by leading players.

Restraints

Lack of technological expertise in developing and underdeveloped economies and the complexity associated with software installation and configuration will act as growth restraints for the market. Furthermore, the decline in awareness and backward economies and the high costs of deploying software will slow the market's growth rate yet again. The lack of strong infrastructure in backward economies will also pose a challenge to market growth rates.

This data center construction market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the data center construction market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Data Center Construction Market

The Covid-19 pandemic has hit at a time when demand for data centre capacity is skyrocketing, putting a halt to new facility building. There has been an impact on the market, such as increased data network traffic due to increased usage of applications such as Zoom, Microsoft Office, and others. However, according to trend force, 3.2 million server units were shipped in the second quarter of 2020. Furthermore, because to supply chain interruptions, the pandemic has made it impossible to build a data centre, slowing market growth.

Recent Development

• NTT Ltd. announced the launch of Global Data Center Interconnect (GDCI), an integrated global network fabric service that provides private and secure connections between NTT's global data centers and major cloud service providers via a single physical port that supports multiple virtual network services, on June 20, 2021. NTT's GDCI is built on sophisticated software-defined network technology, allowing clients to connect to dense ecosystems of cloud service providers in various geographic regions, addressing hybrid and multi-cloud interconnection challenges.
• DPR Construction announced the construction of a new data center project for Facebook in Mesa, Arizona, in August 2021. Because of the extensive use of fresh air for cooling, the 960,000 square foot Mesa facility will use 60% less water than a typical data center.

Middle East and Africa Data Center Construction Market Scope

The data center construction market is segmented on the basis of infrastructure type, data center type, organization size and vertical. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Infrastructure type

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Data center type

• Tier 1
• Tier 2
• Tier 3
• Tier 4

Organization size

• Large Organization
• Small & Medium Organization

Vertical

• Banking
• Financial Services and Insurance
• IT & Telecommunications
• Government & Defence
• Healthcare
• Retail Colocation
• Power & Energy
• Manufacturing
• Others

Data Center Construction Market Regional Analysis/Insights

The data center construction market is analysed and market size insights and trends are provided by country, infrastructure type, data center type, organization size and vertical as referenced above.

The countries covered in the data center construction market report are South Africa, UAE, Israel, Saudi Arabia, Egypt and Rest of Middle East and Africa.

Israel accounted for the greatest market share due to the country's growing military operations, which are augmenting the demand for data center construction.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Middle East and Africa brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Data Center Construction Market Share Analysis

The data center construction market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Middle East and Africa presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to data center construction market.

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

• Page Southerland Page, Inc (U.S.)
• Holder Construction Group, LLC (U.S.)
• Gensler (U.S.)
• SH Group, Inc. (U.S.)
• DPR Construction (U.S.)
• Turner Construction Company (U.S.)
• AECOM (U.S.)
• Arup (U.K.)
• STO Building Group (U.S.)
• Jones Engineering Group (Ireland)
• HDR (U.S.)
• Corgan (U.S.)
• IBM Corporation (U.S.)
• SAS Institute Inc (U.S.)
• Fortis Construction Inc. (U.S.)

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