Data Center Construction Market - Global Report Analysis and Forecast 2015-2019

March 25, 2015
SKU:
IRTNTR5519

Definition and Market Outlook of Data Center Construction:

A data center is used to house an enterprise IT infrastructure. They constitute the backbone of essential business operations. The demand for cloud-based services is increasing among enterprises worldwide including many Fortune 500 companies. Several industries around the globe are making use of advanced technologies to gain a competitive advantage. The complexities associated with business applications have increased because of the enormous growth in data volumes. This has triggered a greater need for construction and renovation of data centers around the globe. Enterprises are focusing on constructing green data centers to reduce power consumption and environmental impact. The construction of a data center includes design, architecture, installation of electrical and mechanical systems, and incorporation of security mechanisms. Infrastructure certifications also play a vital role in the building of data center facilities.

The Global Data Center Construction market is expected to grow significantly during 2015-2019. In terms of revenue, the overall market is expected to grow at a CAGR of over 10% during the forecast period.

Market Drivers of Data Center Construction:

Internet of things (IoT), which requires a data center, is experiencing tremendous growth. Data centers are more suitable for storing and processing data generated by devices connected to the internet, and also to meet the demand for real-time computing. Therefore, the market is set to witness an increase in data centers that are reliable and scalable in nature. The growing demand for cloud computing and big data analytics are also assumed to have an impact on this market, thereby driving the growth of the Global Data Center Construction market during the forecast period.

Market Challenges of Data Center Construction:

The Global Data Center Construction market is facing some serious challenges. One of them is the lack of expertise in designing and constructing a data center. There are several considerations involved in constructing a data center and very particular expertise to implement each and every task is important. This knowledge fall under the categories of construction, design, engineering, project management and many more. Data center construction is highly dependent on the business requirement that combines both present and future needs. Experience in converting business needs to IT infrastructure development will play a critical role in the construction of these facilities. Inadequate analysis of the requirements of an organization will result in improper construction of data centers, which results in increased CAPEX and OPEX.

Market Trends of Data Center Construction:

Data Center Construction market in GCC countries is expected to grow significantly because of certain emerging trends that are expected to have a positive influence on the market during the forecast period. Green Data Center is a trend that is gaining increased attention and will propel the growth of the market during the forecast period. A green data center should comprise better PUE and should aid in reducing the environmental effects of a facility. A data center is currently designed by considering components that support the environment, as well as business operations in an efficient manner.  LEED certification is used to determine whether a constructed facility satisfies the needs of a company.  Software defined data center is a trend that has started to gain traction. Thus, the combination of drivers and trends is expected to propel the market growth during the forecast period.

Report Scope and Segmentation of the Market:

This report covers the present scenario and growth prospects of the Global Data Center Construction market for the period 2015-2019. To calculate the market size, the report considers revenue generated from new data center constructions and renovations of data centers. Please consider the diagram below:
Data Center|New Construction|CAPEX|Renovation|OPEX

Source: TechNavio Analysis

Market Segmentation of New Construction by Type of Construction:

The New Data Center Construction Market is broken down into Electrical, Mechanical and General, which are further segmented into as follows:

Electrical Construction:

  • UPS
  • Energy Storage
  • Generators
  • Transfer Switches and Switchgear
  • Others

Mechanical Construction:

  • Cooling Solution
  • Rack
  • Others

General Construction:

  • Design and Architecture
  • Site Preparation
  • Frame
  • Walls and Doors
  • Raised Flooring
  • Ceiling
  • Security Systems
  • Others

Data Center Construction by Tier Types 2015-2019:

Level of service offered by a data center facility can be identified based on tier systems. Every constructed data center has a tier ranking of 1-4, which is categorized based on its physical infrastructure, cooling, power, promised uptime and redundancy levels. Data center tier system was introduced in 2005, which is developed and maintained by TIA. These four tier levels was developed by the Uptime Institute. Tier classification are done by Uptime Institute, to identify whether a constructed data center facility satisfies the business requirements.
Data Center Tier Levels
Source: TechNavio Analysis

Data Center Construction Market by Geographical Segmentation:

  • United States
  • Western Europe
  • SEA
  • China
  • Latin America
  • India
  • GCC
  • RoW

Data Center Construction Vendor Landscape:

The top companies with the biggest market shares in this market and the products/services they offer:

  1. AECOM – Architecture, Building Engineering, Construction Services, Design and Planning.
  2. Arup Group – Building Design, Economics and Planning, Infrastructure Design, Management Consulting, Specialist Technical Services.
  3. Corgan Associates – Architecture, Design.
  4. DPR Construction – Collaborative Virtual Building, BIM, Sustainable Construction, Preconstruction, Special Services Group, Self-perform Work, Safety.
  5. Fluor – Engineering and Design, Procurement, Fabrication, Construction, Maintenance, Project Management.
  6. Gensler – Design, Construction.
  7. HDR Architecture – Architectural Design, Engineering, Interiors, Civic Consulting, Commissioning, Energy Services, Equipment Planning, Healthcare Consulting, Innovation Consulting, Laboratory Planning, Lighting Design, Master Planning, Product Design and Development, Security Consulting, Site Design and Landscape Architecture, Sustainable Design Solutions, Technology Solutions, Wayfinding Planning and Design.
  8. Holder Construction Group – Preconstruction, BIM, Construction Services, Planning & Design Support, Sustainable Services, Safety & Risk Management, MEP Support & Commissioning, Building Information Exchange
  9. ISG – Construction, Engineering Services.
  10. Jacobs Engineering Group – Architecture & Interiors, Construction, Engineering, Environmental, Information Technology, Operations & Maintenance, Planning & Consulting, Procurement, Program & construction management, Scientific research & testing.
  11. Jones Engineering – Mechanical, Electrical, Fire Protection, Process Pipe work, HVAC, Instrumentation, Calibration, Commissioning, Maintenance, Specialist Lift.
  12. Nakano - Civil Engineering, Construction.
  13. Schneider Electric - Energy & Electricity Projects, Automation Management, Energy Management Equipment Manufactures, Field & Professional Services, Smart Grid & Smart Cities Solution Providers.
  14. SISK Group – Construction, Property Investment.
  15. Sweett Group - Asset management, Bid management, BREEAM, SKA assessments, Construction Design and Management Coordinator, Construction cost audit, Independent certifier, Post project evaluations, Project audit and recovery, Project monitoring, Risk management, SPV management, Technical advisor, Value management.
  16. Syska Hennessy Group - Architectural Lighting Design, Audio-Visual, Building Science & Technologies, Commissioning, Energy Services, Engineering the Architecture, Facilities Management, IT/Telecommunications, Medical Communications, Security, Vertical Transportation.
  17. Turner Construction - Design+Build, Turner Logistics: Procurement Services, Medical Planning and Procurement, BIM, Facilities Management Solutions, Lean Construction.

The other prominent vendors include CPG Corporation, CSF Group, Drake & Scull International, DSCO Group, Edarat Group, Fortis Construction, Gilbane, Hensel Phelps, HITT Contracting, Integrated Design Group, JE Dunn Construction, Kienta Group, Kinetics Corporate, Kirby Group, KKR, M+W group, McGough, McLaren Group, Mercury Engineering, Mercury MENA, Merrick & Co, Mortenson Construction, Nova Corporation, PageSoutherlandPage, Pepper Construction, PM Group, PTS, PWS (Malaysia), Red Engineering, Sara-Timur, Sato Kogyo, Skanska, Structure Tone, The Whiting-Turner Contracting, The Whiting-Turner Contracting, URS, Wah Loon Engineering.

Other Sections Include an Analysis on the Following:

  • Top three Drivers and its Impact on the Data Center Construction Market
  • Top three Challenges and its Impact on the Data Center Construction Market
  • Top three Trends and its Impact on the Data Center Construction Market
  • Five Forces Analysis of the Data Center Construction Market
  • SWOT Analysis of Key Vendors Data Center Construction Market

TechNavio also offers customizations on reports based upon specific client requirement.

Other Related Reports:

Data Center Construction Market in the US 2015-2019
Data Center Construction Market in Latin America 2015-2019
Data Center Construction Market in GCC 2015-2019
Data Center Construction Market in Southeast Asia 2015-2019
Global Data Center Outsourcing Market 2015-2019
Data Center Rack PDU Market in the US 2015-2019
Data Center Fabric Market in the US 2015-2019
Global Data Center Fabric Market 2015-2019

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