Global Data Center Construction Market Report, Insights and Trends, Positive and Negative Factors, Areas to Focus on, Potential Markets, Key Developments, Segments and Verticals, and Forecast 2020 – 2029

Data Center Construction: Introduction

“The global Data Center Construction Market size is expected to be worth around US$ xx Billion by 2021 from US$ X.xx million in 2031, growing at a CAGR of X.x% during the forecast period 2021 to 2031.”

Data center construction refers to the comprehensive sets of processes that are involved in designing and building data center facilities.

The whole process is based on a foundation of three important factors – capacity, disaster tolerance & efficient design.

The design is simple and requires minimal wiring. A data center should have enough capacity to contain all the servers and equipment for the present scenario as well as future requirements. In addition, an ideal data center must be able to resist natural disasters and calamities.

Global Data Center Construction Market: Dynamics

Drivers: The global data center construction market is expected to register significant growth over the 10-year forecast period, due to increasing acceptance and adoption of IoT-based and cloud-based systems, that require implementation of data centers.

Growth of the global data center construction market is also attributable to growing partnerships between governments and various other private organizations in order to reduce carbon footprint of the companies.

In addition, applicability of data centers for storing customer records, employee management transactions, and electronic banking services such as remote banking, has led to higher demand for data centers, thereby fueling growth of the global data center construction market.

The banking and finance sector generates huge volume of confidential data that requires to be stored and shared, which is estimated to lead to increasing demand for data centers, and, in turn, propel growth of the global data center construction market over the 10-year forecast period.

Increasing investments by prominent companies such as Facebook, Google, Amazon, etc. on construction of hyper-scale data center facilities, is another major factor projected to create ample revenue generation opportunities for the players in the global data center construction market in the coming years.

  The concept of data center colocation is estimated to take a leap over the 10-year forecast period. Data colocation is a process of renting space for servers and various other computing hardware. Such trends and innovations are anticipated to augment growth of the global data center construction market, over the 10-year forecast period.

Analysis by Segment: Global Data Center Construction Market

By Tier Standards:

Among these, the Tier III segment is expected to record highest revenue share and further augment growth of the global data center construction market over the forecast period. Tier III includes features of both Tier I & Tier II but with better redundant capacity.

It is the most widely used data center Tiers as it has multiple, active and independent sources of power and cooling resources and therefore the Tier III segment is expected to account for the maximum share in terms of revenue over the forecast period.

By Types of Construction:

On the basis of construction type, the target market is segmented into the electrical design, mechanical design, general construction. Under electrical design segment, modern UPS system with battery monitoring technology is expected to transform the global market scenario and also expected to drive growth of this segment.

In addition, the demand for free cooling system under mechanical design is also expected to register significant growth over the forecast period.

By Industry Vertical:

Based on industry vertical, the market is broadly classified into BFSI, government, technology, telecom media & entertainment, retail, healthcare & others. The steady growth of the banking and financial sector globally is leading to growth of the global data construction center market.

Many banks are building up their own data centers, in order to manage the huge amount of crucial data flowing every day. Therefore, the BFSI segment is expected to dominate in the global data center construction market over the forecast period

Analysis by Region: Global Data Center Construction Market

North America Market Analysis:

North America market is expected to account for maximum share in terms of revenue, owing to increasing number of new data analytics enterprises, coupled with adoption of data centers by these companies.

In addition, increasing growth of service industries in United States has led to generation of huge volumes of data, leading to growth of the global data center construction market in North America. Increasing investments by organization in data center constructions, in order to store and process the acquired data, is expected to drive growth of the global data center construction market.

Rising number of initiatives by major players to install data centers in the US and Canada is expected to drive revenue growth of North America data center construction market over the forecast period.

In 2017 for instance, according to CBRE Group, Inc., total investment on data centers in the US is expected to reach US$ 20 Bn owing to rapid adoption of cloud computing services, led by Amazon.com, Inc., Microsoft Corporation, and Google, Inc.

in addition, in January 2018, Apple Inc. announced investment of US$ 10 Bn on expansion of data centers across the US, and operations start by 2020.

Europe Market Analysis:

Growing demand and adoption of data centers by various industry verticals such as BFSI sector, IT sector, and organizations using cloud-based services in order to manage company infrastructure, and services are expected to drive revenue growth of the Europe data center construction market over the forecast period.

Additionally, increasing investments from public and private companies on construction of new data centers in the region is expected to drive revenue growth of Europe data center construction market. In March 2018 for instance, Microsoft Corporation announced construction of data centers in Switzerland to expand its cloud offerings for customers in Germany.

Moreover, in July 2017, OVH Ltd. announced launch of its first data center in London, and the center houses 40,000 servers. Presence of prominent players such as Schneider Electric SA, Eaton Corporation PLC, Hewlett Packard Enterprise, CyberPower Systems, Inc., Vertiv Co., CIS Global LLC, Leviton Manufacturing Co., Inc., and others in countries in the region is expected to result in rising adoption of data center constructions over the next few years

Latin America Market Analysis:

Increasing investments by major players to increase the number of PDUs in Brazil is expected to drive growth of the market to a significant extent. In May 2018, Ascenty Data Centers e Telecomunicações S/A, which is a major player in Data Center Infrastructure, has set a goal of setting up a portfolio of 25 data centers by 2023, with a potential IPO happening in the coming years.

In addition, in March 2018, Telefónica S.A., which is a Spanish multinational broadband and telecommunications provider, has invested US$ 38.3 Mn for expansion of its Brazilian Data Center.

The Middle East & Africa Market Analysis:

Increasing demand for power distribution units in developing countries such as Africa due to increasing adoption of connected devices in data centers for data acquisition, data monitoring, and related services, etc. is expected to support growth of the market in this region.

Increasing initiatives by major players to install data centers in countries in the region is expected to further drive growth of the market. In March 2018 for instance, Microsoft Corporation announced that it is scheduled to open its first data center in Dubai and Abu Dhabi by next year (2019).

In addition, Africa-based data center company – Teraco Data Environments – invested US$ 73 Mn to expand application of data centers in South Africa, after securing a debt facility of up to US$ 131.3 Mn from Barclays Africa Group.

Global Data Center Construction Market Segmentation:

Segmentation by Tier Standards:

• Tier 1&2
• Tier 3
• Tier 4

Segmentation by Types of Construction:

• Electrical Design
• Mechanical Design
• General Construction

Segmentation by Industry Vertical:

• BFSI
• Government
• Technology
• Telecom Media & Entertainment
• Retail
• Healthcare
• Others

Segmentation by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa