Global Data Center Construction Market – Industry Trends and Forecast to 2031

Data Center Construction Market Analysis and Size

Advancements in technology have transformed the data center construction market, delivering enhanced efficiency, scalability, and sustainability. Cutting-edge designs, modular construction methods, and energy-efficient solutions drive innovation, meeting the growing demands of businesses for reliable and resilient data storage. This evolution fosters a competitive landscape, pushing the industry toward more agile, cost-effective, and environmentally friendly solutions.

The global data center construction market size was valued at USD 44.44 billion in 2023, will reach USD 87.90 billion by 2031, growing at a CAGR of 8.90% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Data center construction involves the design, planning, and assembly of physical infrastructure to house computer systems and networking equipment. It includes tasks such as site selection, building construction, electrical and mechanical system installation, and security implementation. Data centers are crucial for storing, processing, and managing large volumes of digital information, serving as the backbone of modern IT operations.

Data Center Construction Market Dynamics

Drivers

• Rising Usage of Cloud Computing Services

The rise of cloud computing services has fueled the need for more data centers to host these services. As businesses shift towards cloud-based solutions, the demand for data center construction increases. For instance, Amazon Web Services (AWS), a leading cloud provider, continuously expands its global infrastructure, constructing new data centers to support the increasing demand for its services. Similarly, Microsoft Azure and Google Cloud Platform are investing heavily in data center construction to cater to the escalating adoption of cloud-based solutions across industries.

• Growing Demand for High-Performance Applications Drives the Construction of Edge Data Centers

The rising demand for high-performance applications, fueled by advancements such as 5G and IoT, is accelerating the construction of edge data centers. These centers, situated closer to users, minimize latency, catering to the need for swift digital experiences. Consequently, the global data center construction market is expanding as companies invest in infrastructure to support edge computing. This addresses the growing demand for real-time processing and low-latency applications, meeting evolving technological needs.

Opportunities

• Surge in Data Consumption Leading to Expansion of Data Centers

The widespread availability of internet access fuels a rise in data consumption, driving the need for expanded data centers. Businesses respond to the growing demand for online services and cloud-based applications by investing in data center construction process. These facilities are vital for storing and managing digital content efficiently, ensuring seamless connectivity, and enabling businesses to leverage opportunities in our digitally interconnected world.

• Rising Cyber Threats Create Demand for Data Center Construction

As cyber threats continue to rise, organizations prioritize cybersecurity, driving global expansion in data center construction.  Equipped with cutting-edge security, these facilities safeguard sensitive data against evolving risks. The demand for secure storage and processing fuels this growth, ensuring the resilience of businesses worldwide. For instance, as ransomware attacks surge, companies invest in state-of-the-art data centers to fortify their digital infrastructure and safeguard against potential breaches.

Restraints/Challenges

• High Upfront Costs Creates Financial Challenges for Companies

High initial investments in designing, building, and equipping data centers pose a major obstacle for organizations, particularly smaller enterprises. Allocating resources for comprehensive data center construction becomes daunting due to these financial challenges. The dynamic nature of technology infrastructure exacerbates the situation, making it difficult to keep up with evolving costs.

• Limited Availability of Suitable Locations

Rapidly escalating demand for data centers faces hurdles due to the scarcity of suitable sites. Data center construction challenges include urban space constraints, zoning regulations, and environmental considerations, complicating the search for optimal locations. Companies encounter logistical obstacles in constructing new facilities, potentially causing delays and escalating costs.

This 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 market, contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In October 2022, Kuko's group K2 partnered with Sinar Mas to build hyperscale data centers in Indonesia. Their joint venture, K2 Data Centre Jakarta 1 Campus, features four facilities in Greater Jakarta, offering 58.8 MW of IT capacity. The initial phase is expected to be operational by early 2024, boosting Indonesia's digital infrastructure
• In June 2022, Vantage Data Centers announced plans for data center campuses in Poland and Germany. The German facility, spanning 13 acres, unveiled its first building, poised to provide 32MW across 250,000 square feet. This expansion underscores the growing demand for robust data infrastructure across European markets
• In April 2022, Google disclosed a significant investment in expanding its data center infrastructure, earmarking USD 750 million for a new facility in Nebraska. The sprawling campus in Omaha will feature four buildings spanning over 1.4 million square feet. This initiative reflects Google's ongoing commitment to enhancing its digital service capabilities and infrastructure worldwide

Data Center Construction Market Scope

The market, is segmented on the basis of infrastructure type, data center type, organisation 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
  • UPS
  • Power Distribution Units
  • Backup Generators
  • Others
• Mechanical Infrastructure
  • Cooling System
  • HAVAC
• General Construction

Data Center Type

• Tier 1
• Tier 2
• Tier 3
• Tier 4

Organization Size

• Small Size Organization
• Medium Size Organization
• Large Size Organization

Vertical

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

Data Center Construction Market Regional Analysis/Insights

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

The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific is expected to experience substantial growth in the data center construction market, fueled by increased investments and expanding digital infrastructure. The region's focus on technology and rising economic development creates a favorable environment, positioning APAC as a key player in the data center market.

North America is expected to dominate the data center construction market due to proactive adoption of new technologies and substantial investments in metropolitan infrastructure. Its commitment to technological advancements, coupled with robust urban infrastructure development, positions it as a key hub for data center construction.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as 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 global 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 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, global 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 market.

Some of the major players operating in the market are:

• Turner Construction Company (U.S.)
• DPR Construction (U.S.)
• AECOM (U.S.)
• Schneider Electric (France)
• M. A. Mortenson Company (U.S.)
• Arup (U.K.)
• Brasfield & Gorrie (U.S.)
• Corgan (U.S.)
• Currie & Brown Holdings Limited (U.K.)
• Fortis Construction (U.S.)
• Gensler (U.S.)
• Holder Construction Group, LLC (U.S.)
• Jacobs (U.S.)
• ROGERS-O’BRIEN CONSTRUCTION COMPANY, LCC (U.S.)
• Skanska (Sweden)
• STO Building Group (U.S.)
• The Boldt Company (U.S.)

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