by The data center construction market involves the construction or refurbishment of buildings that are used to house servers, storage, networking, and other IT infrastructure required to store and process data generated by various business organizations. Data centers are designed to optimally house computer systems and associated components, while facilitating high-efficiency power and cooling requirements for IT equipment uptime and stability. They have advantages like high availability, scalable capacity, energy efficiency and lower operational costs. With increasing data generation across industries and need to securely store and process large volumes of data, data centers are becoming an integral part of every organization’s IT infrastructure.
The Global data center construction market is estimated to be valued at US$ 72099.62 Mn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the data center construction market are Regeneron Pharmaceuticals, Inc., Alimera Sciences, Oxurion NV., Abbvie Inc. and F. Hoffmann-La Roche Ltd. These key market players are focusing on collaborations and new product launches to strengthen their market position.
The Data Center Construction Market Demand is expected to witness lucrative growth opportunities due to increasing investments by leading cloud service providers towards expanding their Data Center Construction Market Size And Trends capacity. Rapid digital transformation across industries is further fueling the demand for hyperscale data centers globally.
The growing popularity of cloud-based services and the need for low-latency fast connectivity is driving data center operators to adopt an edge/regional data center strategy. This is expected to boost global data center footprint expansion during the forecast period.
Market Drivers
The increasing data traffic owing to widespread Internet and smartphone adoption is one of the major drivers of the data center construction market growth. It is estimated that global IP traffic will reach 4.8 zettabytes per year by 2022. This growing data traffic has necessitated addition of new data center capacity to effectively store and process the humongous amount of data.
PEST Analysis
Political: Government policies regarding data privacy and security significantly impact the data center construction market. Stringent regulations force companies to build infrastructure to ensure compliance.
Economic: Growth of digital economy and demand for data-driven services is driving investments in data centers and their construction. However, rising construction costs can be a challenge.
Social: Increasing internet penetration, social media usage, and move towards digital transformation are pushing organizations to store and process more data digitally. This increases the requirement for advanced data centers.
Technological: Continued adoption of advanced technologies like cloud computing, IoT, big data analytics is transforming business operations. This necessitates modern data centers with high scalability and flexibility to support emerging technologies. Developments in renewable energy solutions are also being incorporated in data center designs.
North America holds the largest share in the data center construction market in terms of value. This can be attributed to presence of major tech companies and cloud service providers in the US and Canada which are continuously expanding their infrastructure.
Asia Pacific is expected to witness the fastest growth during the forecast period. This is due to rapid digitalization, growing population, increasing investment by hyperscalers and government initiatives to develop local data center facilities in countries like China and India.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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