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Report Overview

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.

2023

Base Year

2018-2023

Historical Year

2024-2032

Forecast Year

Global Data Center Construction Market Report Summary Description Value
Base Year USD Billion 2023
Historical Period USD Billion 2018-2023
Forecast Period USD Billion 2024-2032
Market Size 2023 USD Billion 66.23
Market Size 2032 USD Billion 123.82
CAGR 2018-2023 Percentage XX%
CAGR 2024-2032 Percentage 7.2%
CAGR 2024-2032 - Market by Region Asia Pacific 7.8%
CAGR 2024-2032 - Market by Country USA 7.6%
CAGR 2024-2032 - Market by Country China 7.5%
CAGR 2024-2032 - Market by Infrastructure Electrical Infrastructure 8.0%
CAGR 2024-2032 - Market by Size Large Scale Data Center 7.7%
Market Share by Country 2023 UK 3.5%

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
CAGR 2024-2032 - Market by Country
USA 7.6%
China 7.5%
UK 7.4%
Brazil 7.1%
Germany 6.9%
Canada XX%
France XX%
Italy XX%
Japan XX%
India XX%
Australia XX%
Saudi Arabia XX%
Mexico 6.5%

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:

  • Infrastructure
  • Tier Type
  • Size
  • End Use
  • Region
Breakup by Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Infrastructure
Breakup by Tier Type
  • Tier I and II
  • Tier III
  • Tier IV
Breakup by Size
  • Small and Medium Scale Data Center
  • Large Scale Data Center
Breakup by End Use
  • Banking, Financial Services and Insurance
  • IT and Telecommunications
  • Government and Defence
  • Healthcare
  • Others
Breakup by Region
  • North America
    • United States of America 
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Australia
    • Others
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • South Africa
    • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • 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
  • DPR Construction
  • Others

Data Center Construction Market Report Snapshots

Data Center Construction Market Size

Data Center Construction Market Trends

Data Center Construction Market Share

Data Center Construction Companies

Data Center Construction Market Regional Analysis

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

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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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40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.

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6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London

+44-753-713-2163

193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City

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