Data Center Construction Global Market Report 2024

The global data center construction market has grown strongly in recent years. It will grow from $250.4 billion in 2023 to $270.07 billion in 2024 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to growing demand for data storage and processing, rising investments in digital infrastructure, globalization, demand for colocation data centers.

The global data center construction market is expected to see strong growth in the next few years. It will grow to $364.67 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to growth of the digital economy, expanding global data center, shift to cloud computing, growing demand for edge data centers, 5g rollout. Major trends in the forecast period include sustainability and green design, modular data centers, security and compliance, data center-as-a-service.

The increase in data usage within cloud computing is anticipated to be a significant driver for the expansion of the data center construction market in the foreseeable future. Data usage, in this context, refers to the amount of data transferred to and from devices. The growing demand for data storage and processing calls for the construction of additional data center facilities. For instance, a legal technology survey conducted by the American Bar Association in November 2022 reported a substantial increase in overall cloud data usage, rising from 60% in 2021 to 70% in 2022. Furthermore, solo cloud users increased from 52% to 84% within a year. This data underscores how the growing demand for data is a primary factor fueling the growth of the data center construction market.

The high demand for cloud services is anticipated to be a key driver for the continued growth of the data center construction market. Cloud services encompass a wide array of on-demand computing resources and applications that are delivered via the internet. With the proliferation of digital data and the increasing utilization of cloud computing, big data analytics, and Internet of Things (IoT) applications, the need for data storage has risen significantly. This growing demand for cloud services is a driving force behind the construction of data centers. Providers are expanding their infrastructure to meet the evolving needs of users while ensuring top-notch performance, reliability, and security. For example, data from September 2022, as reported by the AAG IT Support Service, indicated that a global study involving 753 technical and business professionals revealed a substantial increase in cloud service usage, with 63% of respondents reporting heavy reliance on these services. This marked an increase from 59% in 2021 and 53% in 2020. Consequently, the data center construction market is expected to continue thriving due to the strong demand for cloud services.

The persistence of supply chain disruptions remains a significant impediment to the growth of the data center construction market during the forecast period. The construction of data centers relies on a multifaceted supply chain encompassing various components and materials. Any disruptions within this supply chain can result in delays and increased project costs. For example, data from March 2023, as reported by AFCOM, a professional association for IT and data center specialists, indicated that 44% of surveyed data center operators experienced outages due to their inability to procure necessary parts. Additionally, 94% of these operators had encountered at least one outage in the past two years. Consequently, the data center construction market continues to face challenges posed by disruptions in the supply chain.

Major players operating in the data center construction market are concentrating on the technological advancement of products by implementing innovations such as Universal Data Hall Design (UDHD) to improve their market share. Universal Data Hall Design (UDHD) ) is a data center design that includes typical colocation components while emphasizing flexibility and scalability. UDHD has a slab floor with perimeter cooling, making it suited for large full-hall high-performance computing (HPC) applications deployments. For instance, in August 2023, DataBank Holdings Ltd., a US-based provider of information management services, launched Universal Data Hall Design (UDHD), a new innovative approach for high-density data center construction to support high-performance computing (HPC). Universal Data Hall Design (UDHD) allows HPC by giving enterprises the flexibility to handle whatever deployment their workloads need.

In December 2021, Equinix Inc., a U.S.-based company specializing in data center construction and solutions, completed its acquisition of MainOne for $320 million. This strategic move allows Platform Equinix to establish a stronger foothold in West Africa, providing access to one of the world's rapidly growing markets for enterprises, both within and outside of Africa. MainOne, based in Nigeria, is a prominent provider of data center construction and connectivity solutions.

Major players in the data center construction market are Google LLC, Amazon Web Services Inc., Microsoft Azure, The International Business Machines Corporation, Schneider Electric SE, Meta Platforms Inc., NTT Ltd., Turner Construction Co, STO Building Group Inc., Equinix Inc., DPR Construction Inc., Iron Mountain Inc., Digital Realty Trust Inc., Stantec Inc., SAS Institute Inc., Zayo Group Holdings Inc., Gensler, CyrusOne LLC, Hensel Phelps Construction Co., Cyxtera Technologies LLC, Fortis Construction Inc., QTS Realty Trust Inc., HITT Contracting Inc., TierPoint LLC, Sabey Data Center Properties LLC, Flexential Corp., Holder Construction Group LLC, Cologix Inc., Alfa Tech Consulting Engineers Inc., ipSpace.net AG.

North America was the largest region in the data center construction market in 2023. The regions covered in data center construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the data center construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of data center construction include small-scale data centers, medium-scale data centers, and large-scale data centers. Small data centers refer to server storage spaces, rooms, and regional information centers with a computing floor area of less than 5,000 square feet. These data centers feature key infrastructure components such as electrical infrastructure, networking infrastructure, and others, complete with power distribution and cooling systems. They find application in various sectors, including banking, financial services, insurance (BFSI), energy, government, healthcare, manufacturing, IT and telecom, and more.

This report provides data center construction market statistics, including data center construction industry global market size, regional shares, competitors with a data center construction market share, detailed data center construction market segments, market trends and opportunities and any further data you may need to thrive in the data center construction industry. This data center construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center construction market includes revenues earned by entities by planning, developing and providing construction assistance for extremely profitable and effective next-generation data center. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center construction market also includes sales of generators, power infrastructure, cooling infrastructure and physical security. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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