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The Data Center General Construction Market size is estimated to grow at a CAGR of 10.39% between 2023 and 2028. The market size is forecast to increase by USD 19.95 billion. The growth of the market depends on several factors, including the increase in investment in data centers, the growth in the adoption of colocation service, and the high demand for cloud-based services. Data center general construction involves the construction of an entire data center facility. It includes architectural planning and designing of the facility and base building shell construction. A data center is a facility generally used by an enterprise to accommodate computer systems, servers, network systems, and other related components to support a company's IT infrastructure. Data center general construction providers plan the architectural design according to the requirements of the client and construct the building shell.
The report offers extensive research analysis on the Data Center General Construction Market, with a categorization based on End-user, including BFSI, government, manufacturing, media and entertainment, and others. It further segments the market by Type, encompassing base building shell construction and architecture planning and designing. Additionally, the report provides Geographical segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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The increase in investment in data centers is notably driving the data center general construction market growth. The need for data centers is rising owing to an increase in the adoption of cloud services and the generation of a considerable volume of data across enterprises. Some companies, such as Google, Amazon.com, Apple, and Facebook, are investing significantly in building their own data centers. They approach general construction providers for design and engineering services. For instance, in September 2018, Facebook announced its partnership with the general construction provider DPR Construction to build a data center in Central Oregon, US.
An increase in investments by enterprises to build their own data centers will have a positive impact on the growth of the global data center general construction market. For instance, in April 2019, Amazon.com Inc. announced that it would open cloud data centers in Indonesia. Thus, an increase in investments toward the construction of data center facilities by enterprises such as Facebook, Amazon.com, Apple, and Google will increase the demand for design and construction management services, which will drive the growth of the global data center general construction market during the forecast period.
The growing focus on the construction of green data centers is a key trend influencing the data center general construction market growth. Green data centers are energy efficient and are built to reduce environmental impact. They use low-emission building materials to create sustainable ecosystems through efficient waste recycling. The construction and operation of green data centers include advanced technologies and strategies. Enterprises are focusing on constructing green data centers.
For instance, in April 2019, Flipkart announced its plan to open a second green data center in Telangana, India, to strengthen its technological infrastructure. Increased power consumption by data centers results in higher pricing of services offered to end-users as well as the OPEX of enterprises. The use of renewable energy sources, free cooling, and waste recycling are some of the measures being implemented in data centers to improve efficiency and performance. Thus, growing interest in green data centers will support the growth of the global data center general construction market during the forecast period
Delays in delivering the projects on time may impede the data center general construction market growth. One of the main challenges is to meet the contractual schedule and performance requirement that the companies in the market have guaranteed, which severely affects the operating results. In addition, the scheduled delays will generally exceed the projected cost for a particular project.
Moreover, project performance can be affected by numerous factors beyond vendor control, including unavoidable delays from governmental inaction, public opposition, inability to obtain financing, weather conditions, unavailability of supply materials, changes in the project scope of services requested by clients, industrial accidents, environmental hazards, and labor disruptions. Hence, such factors are hindering the market growth during the forecast period.
The BFSI segment is estimated to witness significant growth during the forecast period. The increasing digitization of core processes and the generation of a considerable amount of data across various sectors are the main factors that will fuel the growth of this segment. In addition, the number of digital transactions and the addition of new users are increasing in the BFSI sector. Furthermore, in this situation, to improve operational efficiency, financial organizations are demanding data center infrastructure to store financial data safely.
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The BFSI segment was the largest segment and was valued at USD 5.77 billion in 2018. Moreover, a large volume of customer behavior content is being generated as organizations move toward customer-centricity. In addition, data center infrastructure allows financial institutions to meet compliance requirements, data management, security, and transparency challenges. Furthermore, increasing government emphasis on the importance of creating a cloud warehouse for the safe and secure storage of huge amounts of financial data is expected to drive the demand for data center infrastructure. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The rise in investment in data center construction will fuel the base building shell construction segment which will increase the market growth. The base building shell construction segment comprises building permits, local taxes, land excavation and grading, roadways, tie-ins to utilities, and building shell costs. In addition, these are the cost factors to be considered while constructing a base building shell construction. Moreover, partnering with general construction service providers will provide the following benefits in commissioning facility management by minimizing initial capital investment. Furthermore, reducing errors and delivering seamless execution by following construction procedures prepared during the planning process are some of the benefits provided by general construction service providers while constructing a data center. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growth of the market in North America is fuelled by an increase in consumer and enterprise data traffic owing to factors such as growing demand for IoT devices, increasing implementation of autonomous technologies across enterprises, rising investments in artificial intelligence (AI), and growing investments in autonomous vehicles. In addition, North America has been dominated by two hubs in data center construction: the US and Canada. In Canada, Toronto is the dominating location for data centers because of its fiber connectivity, cool ambient temperature, low electricity tariffs, tax-friendly environment, and low risk of natural disasters. Hence, such factors are driving the market growth in North America during the forecast period.
The data center general construction market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Data Center General Construction Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers data center general construction solutions such as power distribution, smart automation, and server room solutions.
ACS Actividades de Construccion Y Servicios SA: The company offers data center general construction through its subsidiary Turner Construction for Papillion and Des Moines.
AECOM: The company offers data center general construction solutions such as design management, contract development, and quantity surveying.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The data center general construction market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028
Data Center General Construction Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.39% |
Market Growth 2024-2028 |
USD 19.95 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.14 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., ACS Actividades de Construccion Y Servicios SA, AECOM, Arup Group Ltd., Brasfield and Gorrie LLC, CORGAN, CyrusOne LLC, Digital Realty Trust Inc., DPR Construction, HDR Inc., Jacobs Solutions Inc., Jones Engineering Holdings Ltd., Legrand SA, M. A. Mortenson Co., Page Southerland Page Inc., Schneider Electric SE, Skanska AB, STO Building Group, The Walsh Group, and Vertiv Holdings Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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