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Global Data Center Construction Market Size, Share, Trends: By Infrastructure: Electrical Infrastructure, Mechanical Infrastructure, General Infrastructure; By Tier Type: Tier I and II, Tier III, Tier IV; By Size: Small and Medium Scale Data Center, Large Scale Data Center; By End Use; Regional Analysis; Market Dynamics; Competitive Landscape; 2024-2032
Global Data Center Construction Market Outlook
The global data center construction market size reached approximately USD 66.23 billion in 2023. The market is projected to grow at a CAGR of 7.2% between 2024 and 2032, reaching a value of around USD 123.82 billion by 2032.
Key Takeaways
- In 2023, the United States had 5375 data centers, followed by Germany (522), Britain (517), and China (448 ).
- World’s biggest data centers by power consumption are situated in Northern Virginia, Beijing, London, Singapore, and other global cities.
- In November 2023, Microsoft is investing $500 million in Canada to construct new data centers and increase its local cloud footprint by 750%.
Data center construction refers to the process of building a physical facility to maintain essential IT infrastructure that is responsible for storing, managing, and running various applications and services. It is supported by a robust network of uninterruptible power supplies, security systems, and proper ventilation and cooling systems, among others, to ensure its smooth functioning. It provides multiple benefits to businesses, including operational flexibility and significant cost savings.
The market is being driven by developments in cloud-based technologies, the rise of remote working culture, and the proliferation of IoT devices. Hyperscalers such as Google, Meta and Microsoft are witnessing a surge in demand for their services, which is positively influencing the data center construction market.
Business productivity has steadily improved with time as the construction of data centers has enabled people to collaborate on important projects remotely. Besides, the increasing popularity of smart devices is also favouring the demand for data centers.
Key Trends and Developments
Improvements in energy efficiency; establishment of high load capacity; rising development of weather-resistant data centers; and the growing popularity of modular data centers are the major trends impacting the data center construction market growth.
| Date | Company | Event |
| Jan. 26th 2024 | AWS | Announced an investment of USD 10 billion for the construction of two data centers in Mississippi, the United States. |
| Dec. 1st 2023 | CyrusOne | Began the construction of its 5th data center in Frankfurt, Germany. |
| Nov. 20th 2023 | Green Mountain | Announced the construction of a new data center facility in Enebakk as a part of its data center expansion plan. |
| Oct. 4th 2023 | Black Box | Revealed its plans to enter the digital infrastructure and data center integration space in India, which is expected to receive investments worth $1.5 billion according to Indian Credit Rating Agency (ICRA). |
| Market Growth Driver | Description |
| Improvements in energy efficiency | Companies are developing innovative solutions to minimise annual power consumption by data centers and make them more sustainable. |
| Rise of high-load capacity data centers | Increasing use of artificial intelligence is expected to drive the construction of high-load capacities data centers. |
| Weather-resistant data centers | Increasing incidences of natural disasters have prompted data center construction companies to build facilities that can withstand extreme weather conditions. |
| The development of modular data centers | There is a shift towards the construction of modular data centers that can be constructed from prefabricated modules and are not impacted by external environmental factors. |
Global Data Center Construction Market Trends
A data center consumes 205 terawatt hours + of electricity each year. This is more than the annual energy consumption of Ireland, Denmark, or Taiwan. Many companies, including Intel and Dell, are developing modular data centers, which can enable them to extend the life of their computing ecosystems by merely changing the HPU (Host Processing Unit).
AI compute differs from traditional compute in terms of power consumption, heat emission, and space requirements. The design of high load capacity data centers requires extensive consultations with stakeholders during the designing stage to ensure smooth collaboration between operations, security, and other teams, which prevents the company from financial pitfalls.
Besides, with the usage of high quality materials and by leveraging AI for data center monitoring operations, companies can expect significant gains from constructing data centers in the forecast period.
Market Segmentation
“Global Data Center Construction Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
| Market Breakup | Categories |
| Infrastructure | Electrical Infrastructure, Mechanical Infrastructure, General Infrastructure |
| Tier Type | Tier I and II, Tier III, Tier IV |
| Size | Small and Medium Scale Data Center, Large Scale Data Center |
| End Use | Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defence, Healthcare, Others |
| Region | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
Electrical infrastructure is further divided based on type into UPS systems and others, whereas mechanical infrastructure is further classified on type into cooling systems and racks, among others.
Small and medium scale data centers are expected to dominate the data center construction market share in the coming years.
Small and medium scale data centres are expected to constitute a major market share in the coming years. This can be attributed to the proliferation of latency-sensitive services provided digitally, which are necessitating the need for establishing edge computing data centers at locations which are the closest to the consumer.
Over the forecast period, thousands of small and medium scale data centers are expected to be established by companies, which can impact the data center construction market growth favourably. As the challenges surrounding manpower shortages and supply chain delays ease, the construction of large scale data centers is also expected to register a significant growth. Such data centers play a critical role in storing and processing large amounts of data which are required by multinational companies.
The BFSI sector is a significant end-user of data center construction due to the digitisation of banking services
The banking, financial services, and insurance sector is expected to lead the market in the coming years. The digitalisation of banking services and products has created the need for maintaining an online customer profile with records of their previous interactions with the bank. Data centers have also become important for storing sensitive customer information, including video KYCs and ATM card details, aiding the data center construction market expansion.
The IT and telecommunications industry is also expected to remain a significant end-user of data centers. Data centers enable high speed processing and connectivity of data, while ensuring data safety and security of transmission. A similar trend of growth is also expected to occur for the healthcare, and government and defence sectors, among others.
Competitive Landscape
Major market players are making significant investments in land acquisition and creating sustainable data centers
| Company Name | Year of Incorporation | Location | Services Provided |
| AECOM | 1990 | Texas, United States | Planning, consulting, design engineering and architectural services |
| IBM Corp. | 1911 | New York, USA | Hybrid cloud and AI business services |
| Jacobs Solutions Inc. | 1947 | Texas, United States | Consulting services, cyber warfare solutions, connected mobility solutions, advanced digital technologies |
| Skanska AB | 1887 | Stockholm, Sweden | Construction and development of residential and commercial properties, critical national infrastructure |
Other key players in the global data center construction market include HITT Contracting Inc., Hensel Phelps, PCL Constructors Inc., Clune Construction Company, J.E. Dunn Construction Company, Turner Construction Company, Holder Construction Group, LLC, and DPR Construction, among others.
Data Center Construction Market Analysis by Region
Europe is expected to dominate the market in the coming years amid increasing investments in data centres by end-use sectors. For instance, in September 2023, Virtus Data Centers announced an investment of 3 billion euros in Germany for establishing a data center campus.
Similarly, in September 2023, Australia’s largest pension fund provider, AustralianSuper, announced an investment of 1.5 billion euros into the Vantage Data Center’s operations in Europe, Middle East, and Africa. With increasing demand for services provided by major cloud based companies, the global data center construction market demand is expected to grow significantly in the forecast period.
Key Highlights of the Report
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Infrastructure |
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| Breakup by Tier Type |
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| Breakup by Size |
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| Breakup by End Use |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
6.1 Global
6.2 Regional
7 Opportunities and Challenges in the Market
8 Global Data Center Construction Market Analysis
8.1 Key Industry Highlights
8.2 Global Data Center Construction Historical Market (2018-2023)
8.3 Global Data Center Construction Market Forecast (2024-2032)
8.4 Global Data Center Construction Market by Infrastructure
8.4.1 Electrical Infrastructure
8.4.1.1 Historical Trend (2018-2023)
8.4.1.2 Forecast Trend (2024-2032)
8.4.1.3 Breakup by Type
8.4.1.3.1 UPS Systems
8.4.1.3.2 Others
8.4.2 Mechanical Infrastructure
8.4.2.1 Historical Trend (2018-2023)
8.4.2.2 Forecast Trend (2024-2032)
8.4.2.3 Breakup by Type
8.4.2.3.1 Cooling Systems
8.4.2.3.2 Racks
8.4.2.3.3 Others
8.4.3 General Infrastructure
8.4.3.1 Historical Trend (2018-2023)
8.4.3.2 Forecast Trend (2024-2032)
8.5 Global Data Center Construction Market by Tier Type
8.5.1 Tier I and II
8.5.1.1 Historical Trend (2018-2023)
8.5.1.2 Forecast Trend (2024-2032)
8.5.2 Tier III
8.5.2.1 Historical Trend (2018-2023)
8.5.2.2 Forecast Trend (2024-2032)
8.5.3 Tier IV
8.5.3.1 Historical Trend (2018-2023)
8.5.3.2 Forecast Trend (2024-2032)
8.6 Global Data Center Construction Market by Size
8.6.1 Small and Medium Scale Data Center
8.6.1.1 Historical Trend (2018-2023)
8.6.1.2 Forecast Trend (2024-2032)
8.6.2 Large Scale Data Center
8.6.2.1 Historical Trend (2018-2023)
8.6.2.2 Forecast Trend (2024-2032)
8.7 Global Data Center Construction Market by End Use
8.7.1 Banking, Financial Services and Insurance
8.7.1.1 Historical Trend (2018-2023)
8.7.1.2 Forecast Trend (2024-2032)
8.7.2 IT and Telecommunications
8.7.2.1 Historical Trend (2018-2023)
8.7.2.2 Forecast Trend (2024-2032)
8.7.3 Government and Defence
8.7.3.1 Historical Trend (2018-2023)
8.7.3.2 Forecast Trend (2024-2032)
8.7.4 Healthcare
8.7.4.1 Historical Trend (2018-2023)
8.7.4.2 Forecast Trend (2024-2032)
8.7.5 Others
8.8 Global Data Center Construction Market by Region
8.8.1 North America
8.8.1.1 Historical Trend (2018-2023)
8.8.1.2 Forecast Trend (2024-2032)
8.8.2 Europe
8.8.2.1 Historical Trend (2018-2023)
8.8.2.2 Forecast Trend (2024-2032)
8.8.3 Asia Pacific
8.8.3.1 Historical Trend (2018-2023)
8.8.3.2 Forecast Trend (2024-2032)
8.8.4 Latin America
8.8.4.1 Historical Trend (2018-2023)
8.8.4.2 Forecast Trend (2024-2032)
8.8.5 Middle East and Africa
8.8.5.1 Historical Trend (2018-2023)
8.8.5.2 Forecast Trend (2024-2032)
9 North America Data Center Construction Market Analysis
9.1 United States of America
9.1.1 Historical Trend (2018-2023)
9.1.2 Forecast Trend (2024-2032)
9.2 Canada
9.2.1 Historical Trend (2018-2023)
9.2.2 Forecast Trend (2024-2032)
10 Europe Data Center Construction Market Analysis
10.1 United Kingdom
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Germany
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 France
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
10.4 Italy
10.4.1 Historical Trend (2018-2023)
10.4.2 Forecast Trend (2024-2032)
10.5 Others
11 Asia Pacific Data Center Construction Market Analysis
11.1 China
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Japan
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 India
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
11.4 ASEAN
11.4.1 Historical Trend (2018-2023)
11.4.2 Forecast Trend (2024-2032)
11.5 Australia
11.5.1 Historical Trend (2018-2023)
11.5.2 Forecast Trend (2024-2032)
11.6 Others
12 Latin America Data Center Construction Market Analysis
12.1 Brazil
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Argentina
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Mexico
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Others
13 Middle East and Africa Data Center Construction Market Analysis
13.1 Saudi Arabia
13.1.1 Historical Trend (2018-2023)
13.1.2 Forecast Trend (2024-2032)
13.2 United Arab Emirates
13.2.1 Historical Trend (2018-2023)
13.2.2 Forecast Trend (2024-2032)
13.3 Nigeria
13.3.1 Historical Trend (2018-2023)
13.3.2 Forecast Trend (2024-2032)
13.4 South Africa
13.4.1 Historical Trend (2018-2023)
13.4.2 Forecast Trend (2024-2032)
13.5 Others
14 Market Dynamics
14.1 SWOT Analysis
14.1.1 Strengths
14.1.2 Weaknesses
14.1.3 Opportunities
14.1.4 Threats
14.2 Porter’s Five Forces Analysis
14.2.1 Supplier’s Power
14.2.2 Buyer’s Power
14.2.3 Threat of New Entrants
14.2.4 Degree of Rivalry
14.2.5 Threat of Substitutes
14.3 Key Indicators for Demand
14.4 Key Indicators for Price
15 Competitive Landscape
15.1 Market Structure
15.2 Company Profiles
15.2.1 AECOM
15.2.1.1 Company Overview
15.2.1.2 Product Portfolio
15.2.1.3 Demographic Reach and Achievements
15.2.1.4 Certifications
15.2.2 HITT Contracting Inc.
15.2.2.1 Company Overview
15.2.2.2 Product Portfolio
15.2.2.3 Demographic Reach and Achievements
15.2.2.4 Certifications
15.2.3 Jacobs Solutions Inc.
15.2.3.1 Company Overview
15.2.3.2 Product Portfolio
15.2.3.3 Demographic Reach and Achievements
15.2.3.4 Certifications
15.2.4 Hensel Phelps
15.2.4.1 Company Overview
15.2.4.2 Product Portfolio
15.2.4.3 Demographic Reach and Achievements
15.2.4.4 Certifications
15.2.5 IBM Corp.
15.2.5.1 Company Overview
15.2.5.2 Product Portfolio
15.2.5.3 Demographic Reach and Achievements
15.2.5.4 Certifications
15.2.6 PCL Constructors Inc.
15.2.6.1 Company Overview
15.2.6.2 Product Portfolio
15.2.6.3 Demographic Reach and Achievements
15.2.6.4 Certifications
15.2.7 Skanska AB
15.2.7.1 Company Overview
15.2.7.2 Product Portfolio
15.2.7.3 Demographic Reach and Achievements
15.2.7.4 Certifications
15.2.8 Clune Construction Company
15.2.8.1 Company Overview
15.2.8.2 Product Portfolio
15.2.8.3 Demographic Reach and Achievements
15.2.8.4 Certifications
15.2.9 J.E. Dunn Construction Company
15.2.9.1 Company Overview
15.2.9.2 Product Portfolio
15.2.9.3 Demographic Reach and Achievements
15.2.9.4 Certifications
15.2.10 Turner Construction Company
15.2.10.1 Company Overview
15.2.10.2 Product Portfolio
15.2.10.3 Demographic Reach and Achievements
15.2.10.4 Certifications
15.2.11 Holder Construction Group, LLC
15.2.11.1 Company Overview
15.2.11.2 Product Portfolio
15.2.11.3 Demographic Reach and Achievements
15.2.11.4 Certifications
15.2.12 DPR Construction
15.2.12.1 Company Overview
15.2.12.2 Product Portfolio
15.2.12.3 Demographic Reach and Achievements
15.2.12.4 Certifications
15.2.13 Others
16 Key Trends and Developments in the Market
List of Key Figures and Tables
1. Global Data Center Construction Market: Key Industry Highlights, 2018 and 2032
2. Global Data Center Construction Historical Market: Breakup by Infrastructure (USD Billion), 2018-2023
3. Global Data Center Construction Market Forecast: Breakup by Infrastructure (USD Billion), 2024-2032
4. Global Data Center Construction Historical Market: Breakup by Tier Type (USD Billion), 2018-2023
5. Global Data Center Construction Market Forecast: Breakup by Tier Type (USD Billion), 2024-2032
6. Global Data Center Construction Historical Market: Breakup by Size (USD Billion), 2018-2023
7. Global Data Center Construction Market Forecast: Breakup by Size (USD Billion), 2024-2032
8. Global Data Center Construction Historical Market: Breakup by End Use (USD Billion), 2018-2023
9. Global Data Center Construction Market Forecast: Breakup by End Use (USD Billion), 2024-2032
10. Global Data Center Construction Historical Market: Breakup by Region (USD Billion), 2018-2023
11. Global Data Center Construction Market Forecast: Breakup by Region (USD Billion), 2024-2032
12. North America Data Center Construction Historical Market: Breakup by Country (USD Billion), 2018-2023
13. North America Data Center Construction Market Forecast: Breakup by Country (USD Billion), 2024-2032
14. Europe Data Center Construction Historical Market: Breakup by Country (USD Billion), 2018-2023
15. Europe Data Center Construction Market Forecast: Breakup by Country (USD Billion), 2024-2032
16. Asia Pacific Data Center Construction Historical Market: Breakup by Country (USD Billion), 2018-2023
17. Asia Pacific Data Center Construction Market Forecast: Breakup by Country (USD Billion), 2024-2032
18. Latin America Data Center Construction Historical Market: Breakup by Country (USD Billion), 2018-2023
19. Latin America Data Center Construction Market Forecast: Breakup by Country (USD Billion), 2024-2032
20. Middle East and Africa Data Center Construction Historical Market: Breakup by Country (USD Billion), 2018-2023
21. Middle East and Africa Data Center Construction Market Forecast: Breakup by Country (USD Billion), 2024-2032
22. Global Data Center Construction Market Structure
Key Questions Answered in the Report
In 2023, the market reached an approximate value of USD 66.23 billion.
The market is estimated to grow at a CAGR of 7.2% between 2024 and 2032.
The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach a value of around USD 123.82 billion by 2032.
The market is being driven by the developments in cloud-based technologies, rise of remote working culture, and proliferation of IoT devices.
The key trends aiding the market expansion include improvements in energy efficiency, establishment of high load capacity and weather resistant data centers, and the development of modular data centers.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The major sizes of data center include small and medium scale data center and large scale data center.
The major players in the market are AECOM, HITT Contracting Inc., Jacobs Solutions Inc., Hensel Phelps, IBM Corp., PCL Constructors Inc., Skanska AB, Clune Construction Company, J.E. Dunn Construction Company, Turner Construction Company, Holder Construction Group, LLC, and DPR Construction, among others.
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