Russia Data Center Construction Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.95 Billion |
| Market Size (2030) | USD 8.16 Billion |
| CAGR (2024 - 2030) | 12.86 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Russia Data Center Construction Market Analysis
The Russia Data Center Construction Market size is estimated at USD 3.95 billion in 2024, and is expected to reach USD 8.16 billion by 2030, growing at a CAGR of 12.86% during the forecast period (2024-2030).
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Russian data center construction market is expected to reach more than 1800 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 4.3 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach more than 216.6K units by 2030. Moscow is expected to house the maximum number of racks by 2030.
- Planned Submarine Cables: There are ten submarine cable systems connecting Russia to the rest of the world. One such submarine cable that was built in 2022 is Petropavlovsk-Kamchatsky - Anadyr, which stretches over 2,173 kilometers with landing points in Anadyr, Russia, Petropavlovsk-Kamchatsky, Russia, and Ugolnye Kopi, Russia.
Russia Data Center Construction Market Trends
Tier 3 Contributing Significant Market Share while Tier 4 Showcase Growth
- In 2023, tier 3 was positioned to secure a significant market share, propelled by a notable uptick in tier 3 certifications across various facilities. Russia, boasting over 15 tier 3 data centers, is also witnessing the construction of several more. Concurrently, tier 4 is primed for accelerated growth in the near future.
- Moscow is home to the largest concentration of tier-3 data centers in Russia. Notable players in this space include Rostelecom, 3Data, MTS PJSC (MTS Group), Selectel Ltd, DataPro, RackStore, IXELERATE LLC, Yandex Cloud LLC, and Rosenergoatom, among others.
- SMEs increasingly opt for tier 3-rated data systems, attracted by their robust redundancy features. This shift predominantly stems from the heightened emphasis on data security. Furthermore, the uptick in smartphone adoption, focus on premium digital content, a surge in visually immersive online gaming, and a notable transition of consumers toward online shopping and digital transactions collectively fuel the expansion of tier 3 data centers across the country.
- There is a gradual decline in demand for tier 1 and 2 facilities, a trend likely to persist due to frequent and prolonged outages. Consequently, users are increasingly favoring tier 3 and 4 facilities, driven by the rising need for robust data storage, processing, and analysis capabilities.
- With an increasing number of businesses offering cloud-based services, the demand for tier 4 data centers is set to surge in the upcoming years. Consequently, numerous data center providers are ramping up construction efforts to offer cutting-edge colocation spaces.
IT and Telecom to Have Significant Market Share
- Within the Russian economy, the IT sector stands out as a strategic segment, outpacing the overall GDP growth rate, a trend projected to persist in the coming years.
- Russia's market is witnessing a surge in cloud adoption, propelled by advancements in technologies such as artificial intelligence, Big Data, and blockchain. Moreover, as Russia pivots toward a digital ruble and actively participates in cryptocurrency mining and trading, the demand for robust data center infrastructure is poised to escalate.
- Technoparks in Russia, such as Skolkovo, IstraDigital, and Mordovia Republic’s Technopark, are pivotal in driving growth and innovation in the country's data center sector, providing a host of advantages to potential investors.
- The surging 4G adoption, escalating broadband speeds, and the imminent 5G revolution are compelling telecom vendors to bolster their investments in the data center sphere. In December 2023, Russia announced plans to roll out 5G networks in its major cities by 2026. Moreover, the government pledged approximately USD 38.61 million to aid operators in transitioning to these advanced 5G networks.
- In January 2023, Russian telecom operators signed forward contracts with local manufacturers of communication network base stations totaling over RUB 100 billion (USD 1.1 billion). The contracts entail the delivery of approximately 75,000 base stations by 2030, with a mandate for operators to procure solely from domestic sources starting in 2028. This move underscores the growing demand for data processing, prompting the imperative for new data centers and expansions.
Russia Data Center Construction Industry Overview
The Russian data center construction market features key players like Arup and Astron Buildings SA, among others, leading to a slightly fragmented landscape. Notably, major data center corporations are intensifying their investments in Russia, with a primary focus on expansion and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.
For instance, in April 2023, 3Data unveiled plans to construct 35 data centers across Russia's primary regions in the next five years. These data centers, ranging from 400 to 1200 racks, are slated for cities like Vladivostok, Novosibirsk, Yekaterinburg, Nizhny Novgorod, and Stavropol. The company also intends to establish data centers with capacities between 30 and 400 racks in another 30 Russian cities.
Russia Data Center Construction Market Leaders
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Arup
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Astron Buildings S.A.
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GreenMDC
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HAKA MOSCOW
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Monarch group of companies
*Disclaimer: Major Players sorted in no particular order
Russia Data Center Construction Market News
- September 2023: VEB.RF announced plans to back upcoming projects that focus on constructing data processing centers, with a key emphasis on utilizing Russian-made equipment.
- May 2023: Wildberries, a Russian e-commerce giant, unveiled its inaugural data center in the Moscow region. Covering an expansive 16,000 square meters, the center boasts a robust capacity of 3.5 MW.
Russia Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Technology Penetration and 5G Deployment
4.2.1.2 The Rising Number of Internet Users, Growing Data Traffic, and Proactive Government Initiatives
4.2.2 Market Restraints
4.2.2.1 Higher Inflation, Supply Disruptions, and Equipment Shortage
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Key Russia Data Center Construction Statistics
4.4.1 Number of Data Centers in Russia, 2022 and 2023
4.4.2 Data Center Under Construction in Russia, in MW, 2024 - 2029
4.4.3 Average CAPEX and OPEX for Russia Data Center Construction
4.4.4 Data Center Power Capacity Absorption in MW, Selected Cities, Russia, 2022 and 2023
4.4.5 The top CAPEX Spenders on Data Center Infrastructure in Russia
5. MARKET SEGMENTATION
5.1 By Infrastructure
5.1.1 By Electrical Infrastructure
5.1.1.1 Power Distribution Solution
5.1.1.1.1 PDU - Basic & Smart - Metered & Switched solutions
5.1.1.1.2 Transfer Switches
5.1.1.1.2.1 Static
5.1.1.1.2.2 Automatic (ATS)
5.1.1.1.3 Switchgear
5.1.1.1.3.1 Low-Voltage
5.1.1.1.3.2 Medium-Voltage
5.1.1.1.4 Power Panels and Components
5.1.1.1.5 Other Power Distribution Solutions
5.1.1.2 Power Backup Solutions
5.1.1.2.1 UPS
5.1.1.2.2 Generators
5.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance
5.1.2 By Mechanical Infrastructure
5.1.2.1 Cooling Systems
5.1.2.1.1 Immersion Cooling
5.1.2.1.2 Direct-To-Chip Cooling
5.1.2.1.3 Rear Door Heat Exchanger
5.1.2.1.4 In-Row and In-Rack Cooling
5.1.2.2 Racks
5.1.2.3 Other Mechanical Infrastructure
5.1.3 General Construction
5.2 By Tier Type
5.2.1 Tier 1 and 2
5.2.2 Tier 3
5.2.3 Tier 4
5.3 By End User
5.3.1 Banking, Financial Services, and Insurance
5.3.2 IT and Telecommunications
5.3.3 Government and Defense
5.3.4 Healthcare
5.3.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Arup
6.1.2 Astron Buildings SA
6.1.3 GreenMDC
6.1.4 HAKA MOSCOW
6.1.5 Monarch Group of Companies
6.1.6 Free Technologies
6.1.7 Aqvastroy TEK
6.1.8 RD Construction
6.1.9 Rostelecom PJSC
6.1.10 LANIT Group of Companies
- *List Not Exhaustive
7. INVESTMENTS ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. ABOUT US
9.1 Industries Covered
9.2 Illustrative List of Clients in the Industry
9.3 Our Customized Research Capabilities
Russia Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The data center construction market in Russia is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), 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, and other mechanical infrastructure)), and general construction)), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services & insurance, it and telecommunications, government & defense, healthcare, and other end users). The market sizes and forecasts are provided in USD value for all the above segments.
| By Infrastructure | ||||||||||||||||||||
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| General Construction |
| By Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| By End User | |
| Banking, Financial Services, and Insurance | |
| IT and Telecommunications | |
| Government and Defense | |
| Healthcare | |
| Other End Users |
Russia Data Center Construction Market Research FAQs
How big is the Russia Data Center Construction Market?
The Russia Data Center Construction Market size is expected to reach USD 3.95 billion in 2024 and grow at a CAGR of 12.86% to reach USD 8.16 billion by 2030.
What is the current Russia Data Center Construction Market size?
In 2024, the Russia Data Center Construction Market size is expected to reach USD 3.95 billion.
Who are the key players in Russia Data Center Construction Market?
Arup, Astron Buildings S.A., GreenMDC, HAKA MOSCOW and Monarch group of companies are the major companies operating in the Russia Data Center Construction Market.
What years does this Russia Data Center Construction Market cover, and what was the market size in 2023?
In 2023, the Russia Data Center Construction Market size was estimated at USD 3.44 billion. The report covers the Russia Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Russia Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Russia Data Center Construction Industry Report
Statistics for the 2024 Russia Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Russia Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Russia Data Center Construction Market Report Snapshots
