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Data Center Construction Market Size (2024 - 2029)

The data center construction market is experiencing significant growth driven by the increasing demand for data management, backup, and recovery services, as well as the rising adoption of cloud solutions and hybrid cloud environments. The expansion of hyper-scale data centers is creating lucrative opportunities, as these facilities enhance computing power and storage capabilities for enterprises. Despite challenges such as environmental impacts, high construction costs, and supply chain disruptions exacerbated by the COVID-19 pandemic, the market has rebounded due to the surging demand for data capacity. This growth trajectory underscores the critical role of data centers in supporting the digital economy and enterprise IT requirements.

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Market Size of Data Center Construction Industry

Data Center Construction Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 262.20 Billion
Market Size (2029) USD 355.80 Billion
CAGR (2024 - 2029) 7.30 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Data Center Construction Market Analysis

The Data Center Construction Market size is estimated at USD 262.20 billion in 2024, and is expected to reach USD 355.80 billion by 2030, growing at a CAGR of 7.30% during the forecast period (2024-2030).

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Global data center market is expected to reach above 73,000 MW by 2029.
  • Under Construction Raised Floor Space: The global construction of raised floor areas is expected to exceed 285 million sq. ft. by 2029.
  • Planned Racks: The total number of racks to be installed is expected to reach more than 14 million units by 2029. North America is expected to house the maximum number of racks by 2029.
  • Hyper-scale data centers are being built more often worldwide to store massive volumes of data, opening up lucrative opportunities for business players. Many industries use hyper-scale data centers to increase computing power, memory, networking capabilities, and storage resources. The ability to effectively scale up computer workloads at a large scale and the physical infrastructure and distribution systems supporting the data centers are two of the many components of hyper-scale data centers.
  • Moreover, According to Flexera State of the Cloud Report 2023, 72% of companies' respondents stated they had deployed a hybrid cloud in their business. Migrating to hybrid cloud solutions often comes at the expense of operating private and public clouds.

Data Center Construction Industry Overview

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

The global data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, others)), power backup solution (ups, generators), service – design & consulting, integration, support & maintenance)), (mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, other mechanical infrastructure)), general construction)), by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by end user (banking, financial services and insurance, it and telecommunications, government and defense, healthcare, and other end user), and geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The market sizes and forecasts are provided in USD values for all the above segments.

Market Segmentation - By Infrastructure
Market Segmentation - Electrical Infrastructure
Power Distribution Solution
PDU - Basic & Smart - Metered & Switched solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-voltage
Medium-voltage
Power Panels and Components
Others
Power Back up Solutions
UPS
Generators
Service - Design & Consulting, Integration, Support & Maintenance
Market Segmentation - By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-To-Chip Cooling
Rear Door Heat Exchanger
In-row and In-rack Cooling
Racks
Other Mechanical Infrastructure
General Construction
Market Segmentation - By Tier Type
Tier-I and II
Tier-III
Tier-IV
Market Segmentation - By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Healthcare
Other End Users
Market Segmentation - By Region
North America
Europe
Asia-Pacific
Middle East and Africa
Latin America
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Data Center Construction Market Size Summary

The data center construction market is poised for significant growth, driven by the increasing reliance on data centers to meet the IT demands of enterprises in an era of on-demand services. The evolution of data centers has been propelled by the need for enhanced data management, backup, recovery, and productivity tools. The rise of hyper-scale data centers, which offer substantial computing power, memory, and storage capabilities, is a key factor in this expansion. These facilities are becoming more prevalent globally, providing lucrative opportunities for industry players. The shift towards hybrid cloud solutions, as indicated by a substantial percentage of companies adopting such models, further underscores the growing demand for data centers. This trend is supported by government initiatives promoting digital economies and advancements in storage infrastructure, such as those introduced by Seagate Technology and Phison Electronics.

Despite the promising growth prospects, the market faces challenges related to environmental impact, high construction costs, and workforce issues, which could hinder the establishment of new data centers, particularly for small and medium enterprises. The COVID-19 pandemic initially disrupted construction activities and supply chains, but post-pandemic demand for data capacity has surged, leading to a resurgence in data center construction. North America remains a dominant region, bolstered by a robust economy and advanced network infrastructure, with significant investments from major cloud service providers. The increasing need for data security and privacy, alongside investments in metro infrastructure, further fuels market expansion. The market is characterized by intense competition among major players, with ongoing technological advancements and strategic partnerships driving growth and market presence.

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Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Market Segmentation - By Infrastructure

      1. 1.1.1 Market Segmentation - Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDU - Basic & Smart - Metered & Switched solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-voltage

            2. 1.1.1.1.3.2 Medium-voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Others

        2. 1.1.1.2 Power Back up Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance

      2. 1.1.2 Market Segmentation - By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-To-Chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-row and In-rack Cooling

        2. 1.1.2.2 Racks

        3. 1.1.2.3 Other Mechanical Infrastructure

      3. 1.1.3 General Construction

    2. 1.2 Market Segmentation - By Tier Type

      1. 1.2.1 Tier-I and II

      2. 1.2.2 Tier-III

      3. 1.2.3 Tier-IV

    3. 1.3 Market Segmentation - By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

    4. 1.4 Market Segmentation - By Region

      1. 1.4.1 North America

      2. 1.4.2 Europe

      3. 1.4.3 Asia-Pacific

      4. 1.4.4 Middle East and Africa

      5. 1.4.5 Latin America

Data Center Construction Market Size FAQs

The Data Center Construction Market size is expected to reach USD 262.20 billion in 2024 and grow at a CAGR of 7.30% to reach USD 355.80 billion by 2029.

In 2024, the Data Center Construction Market size is expected to reach USD 262.20 billion.

Data Center Construction Market Report Snapshots

Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)